RAKBank third quarter profit doubles

|By Arabian Post Staff| National Bank of Ras Al Khaimah (RAKBank) Group said the bank’s profit for the third quarter more than doubled to Dh224.8 million, compared to the previous period and recorded all-round improvement in its 9 months performance, achieving a growth of 9.4 per cent in the consolidated net profit of Dh606.3 million. Gross loans and advances stood at Dh32.6 billion as of 30 September 2017, up by 12.5 per cent compared with the same period last year. Total assets were up by 8.3 per cent to Dh46.1 billion compared to the end of 2016. Customer deposits grew by Dh2.1 billion to Dh31.5 billion, a 7 per cent growth compared to the end of 2016. Total income increased by 1.2 per cent for the third quarter of 2017 compared to the same quarter of the previous year.

“RAKBank’s performance these past nine months is a reflection of the bank’s diversification strategy that was initiated a few years ago,” said RAKBank CEO, Peter England.
“All the various business segments of Wholesale Banking, Business Banking, Personal Banking, and Treasury have made solid progress throughout the year.
“Whilst diversifying our loan book and growing into new areas in Treasury and Wholesale banking particularly, the bank remains very committed to the SME segment despite the challenges faced in this area in the past 2 years.”
The Group’s Wholesale Banking, Business Banking and Insurance businesses brought about strong growth in the non-interest income despite the net interest income for nine months declining due to the changes made in the Bank’s business mix of lending.
Impairments continued their downward trajectory from its peak in the third quarter of 2016, declining by 27.8 per cent in the third quarter of 2017 compared with the third quarter of previous year and is down by 12 per cent in the nine months compared to the same period in 2016.
The bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 20.4 per cent as of the end of September 2017. The advances to stable resources ratio stood comfortably at 88.8 per cent compared to 85.5 per cent at the end of 2016.