National Bank of Umm Al Qaiwain PSC : NBQ Q2 2022 Published on 20-07-2022

NATIONAL BANK OF

UMM AL-QAIWAIN (PSC)

AND SUBSIDIARY

Review report and condensed consolidated interim financial statements

For the period ended 30 June 2022

NATIONAL BANK OF UMM AL-QAIWAIN (PSC) AND SUBSIDIARY

Review report and condensed consolidated interim financial statements

For the six months period ended 30 June 2022

Contents	Pages
Report on review of condensed consolidated interim financial statements	1
Consolidated interim statement of financial position	2
Consolidated interim income statement	3
Consolidated interim statement of comprehensive income	4
Consolidated interim statement of changes in equity	5
Consolidated interim statement of cash flows	6
Notes to the condensed consolidated interim financial statements	7 - 23

Ernst & Young (Sharjah Branch)	Tel: [phone]
P.O. Box 1350	ey.com
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Sharjah, United Arab Emirates

REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF NATIONAL BANK OF UMM AL- QAIWAIN PSC AND SUBSIDIARY

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements of National Bank of Umm Al-Qaiwain PSC (the "Bank") and its subsidiary (collectively referred to as the "Group"), which comprise the consolidated interim statement of financial position as at 30 June 2022 and the related consolidated interim statements of income and comprehensive income for the three month and six month periods then ended and consolidated interim statement of cash flows and changes in equity for the six- month period then ended and explanatory notes. Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standard IAS 34, Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IAS 34.

Ernst & Young

Signed by:

Anthony O' Sullivan

Partner

Registration No. 687

20 July 2022

Sharjah, United Arab Emirates

A member firm of Ernst & Young Global Limited

National Bank of Umm Al-Qaiwain (PSC) and Subsidiary

CONSOLIDATED INTERIM INCOME STATEMENT

For the six months period ended 30 June 2022 (Unaudited)

		Three months period ended	Six months period ended
		30 June (Unaudited)	30 June (Unaudited)
		────────────────	────────────────
		2022	2021	2022	2021
	Notes	AED '000	AED '000	AED '000	AED '000
Interest income		81,094	75,876	153,061	151,147
Income from Islamic financing products		12,415	5,999	18,211	14,764
		────────	────────	────────	────────
Total interest income and income
from Islamic financing products		93,509	81,875	171,272	165,911
Interest expense		(11,237)	(12,047)	(22,181)	(25,452)
Distribution to depositors - Islamic products		(66)	(80)	(149)	(176)
		────────	────────	────────	────────
Net interest income and income from
Islamic products net of distribution
to depositors		82,206	69,748	148,942	140,283
Net fees and commission income		10,246	10,457	20,948	23,847
Other operating income		14,230	4,986	37,878	18,169
		────────	────────	────────	────────
GROSS INCOME		106,682	85,191	207,768	182,299
Operating expenses		(35,634)	(32,835)	(71,317)	(64,994)
Investment gains		4,365	5,899	34,859	33,484
		────────	────────	────────	────────
OPERATING INCOME		75,413	58,255	171,310	150,789
Share of results from an associate		50	200	108	254
		────────	────────	────────	────────
PROFIT FOR THE PERIOD		75,463	58,455	171,418	151,043
BEFORE IMPAIRMENT
Net impairment losses	14	(6,737)	(3,462)	(6,121)	(19,563)
		────────	────────	────────	────────
PROFIT FOR THE PERIOD		68,726	54,993	165,297	131,480
		════════	════════	════════	════════
Basic and diluted earnings
per share (AED)	15	0.04	0.03	0.09	0.07
		════════	════════	════════	════════

The attached notes 1 to 25 form an integral part of these condensed consolidated interim financial statements.

The independent auditor's report on review of the condensed consolidated interim financial statements is set out on page 1.

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