CAR is one of the highest at 40 pc
BBN Report
UMM AL-QAIWAN/October 272020: The National Bank of Umm Al-Qaiwan (NBQ) has posted a net profit of AED176 million for the nine months ending September 30, 2020, according to a statement from the bank.
Total assets of the bank stood at AED13.60 billion as of September 30, whereas the deposits-to-advances ratio has been maintained at 108 per cent.
The bank has maintained a share capital of AED1.848 billion and shareholders’ equity of AED4.58 billion as of September 30, 2020.
Extremely high CAR
The capital adequacy ratio (CAR) of the bank has improved to 40.03 per cent as of September 30, 2020, which continues to be way over the minimum threshold stipulated by the UAE Central Bank in accordance with Basel 3 guidelines.
“This high CAR provides ample opportunities for the bank to leverage. Tier 1 ratio is maintained at 38.02 per cent during the nine-month period.
Comfortable cost to income ratio
The cost to income ratio of the bank as on September 30 stood at 28 per cent, which shows the efficiency of the bank in controlling its costs versus income during the period under review.
“NBQ is focused on exercising prudence and building up provisions to ensure adequate cushions during the challenging times,” the statement added.
In light of the present economic situation, the bank continues to enhance its provisioning and as of September end, the bank has maintained provisions to the tune of AED97 million.
The bank holds collateral and specific provisions of 164 per cent of the non-performing loans (NPLs), which shows the prudent management and effective monitoring of the loans and advances portfolio of the bank.
Comfortable liquidity level
The bank has been able to maintain high liquidity with stable resources to advances ratio of 151 per cent as of September 30, against 100 per cent that the Central Bank of UAE has set as the minimum limit.
Net stable funding ratio as of September end as per Basel 3 guidelines stood at 117 per cent compared with a minimum stipulated ratio of 100 per cent.
