NBF recorded a net profit of AED 393.1 million compared to AED 305.8 million in 2012; its highest ever. Operating profit was AED 560.7 million compared to AED 479.5 million in 2012. Loan loss provision was AED 167.6 million compared to AED 173.7 million in 2012; an improvement of 3.5 per cent. The NPL ratio improved to 4.6 per cent from 7.6 per cent in the same period. Total provision coverage improved to 118.4 per cent from 79.7 per cent in 2012. Operating income grew by 16.5 per cent and foreign exchange and derivatives income experienced a growth of 12.3 per cent whilst operating expenses increased by 15.7 per cent. This reflects ongoing investment in enhancing NBF's business and service platforms. Nonetheless, cost-to-income ratio improved to 36.6 per cent from 36.9 per cent in 2012, reflecting the bank's emphasis on customer service and process efficiencies. Strong capital adequacy and advances-to-deposits ratios were maintained at 17.8 per cent (Tier 1 ratio: 14.4 per cent) and 84.0 per cent respectively; well ahead of Central Bank minimum requirements. Total assets of AED 21.5 billion were up 22.3 per cent from AED 17.5 billion at 2012 year end. Loans and advances of AED 14.3 billion were up 17.5 per cent from AED 12.2 billion at 2012 year end whilst customer deposits of AED 15.0 billion were up 24.6 per cent from AED 12.0 billion at 2012 year end. Shareholders' equity of AED 3.0 billion, achieved through a combination of the bank's profit retention as well as the AED 500 million of Tier 1 capital notes it issued in Q1 2013, was up 33.5 per cent from AED 2.3 billion at 2012 year end. Return on average assets was 2.0 per cent compared to 1.9 per cent and return on average equity was 14.8 per cent compared to 14.1 per cent in 2012. Cash dividends of 12.5 per cent (2012: 10 per cent) of paid-up capital have been recommended; a growth of 25 per cent from 2012. H.H Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi , NBF Chairman said: "In view of the bank's record performance I, on behalf of the Board of Directors, am pleased to recommend an increase in dividend of 25 per cent and propose a distribution of profits, in the form of cash dividends, of 12.5 per cent (2012: 10 per cent) of paid-up capital."
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