Rakbank profit up 25.8pc to $160m
Dubai, July 24, 2011
Rakbank has reported a net profit of Dh589.1 million (4160.38 million) for the six months ended June 30, 2011, reflecting a 25.8 per cent growth compared to the same period in 2010.
The bank’s net interest income grew by 21.7 per cent compared to June 30, 2010 to reach Dh933.3 million. Gross loans and advances stood at Dh17.9 billion, an increase of 6.7 per cent over December 31, 2010 and an increase of 15.7 per cent compared to June 30, 2010.
“The bank’s six-month result reflects the growth in its customer base across a wide range of personal and small business segments, which is emphasised by Rakbank’s competitive product offerings and award-winning customer service,” said Graham Honeybill, Rakbank chief executive officer.
Fee and commission income at Dh307.9 million was up by 12.6 per cent compared to June 30, 2010, a reflection of increased volumes of business being processed during the six months. Following the introduction of the new Central Bank of the UAE guidelines for the retail banking segment, the bank is diversifying its product range and expanding further into business customer segments.
Rakbank is increasing its investments in product development, delivery channels, and technological integration to expand its e-solution portfolio and position Rakbank at the forefront of Electronic Banking Solutions.
'The bank remains vigilant and well positioned to benefit from changing trends and to take advantage of business opportunities, including online ventures, as and when they arise,” added Honeybill. With a positive outlook on the market, Rakbank continues to expand its branch network across the UAE to complement its thrust in online services and has added two branches earlier in 2011 in Dubai and Abu Dhabi.
During the six months, the bank took adequate provisions on its loan portfolio. Total impairment charge for the half year stood at Dh148.3 million, which was in line with the charge of Dh148.8 million made during the same period last year.
Total assets as at June 30, 2011 were Dh22.6 billion, an increase of 5.8 per cent over December 31, 2010 and a 14.1 per cent increase compared to June 30, 2010. – TradeArabia News Service