Rakbank Q1 net profit up 11pc
Ras Al Khaimah, April 22, 2012
The National Bank of Ras Al-Khaimah (Rakbank) said it has registered a first quarter net profit of Dh325.3 million ($88.5 million), up 11 per cent compared to the same period last year and 9.5 per cent over the previous quarter.
Announcing the results on Sunday, Rakbank said its net interest income for the quarter ended March 31 grew 21 per cent to hit Dh538.2 million compared to the same period last year.
The bank's gross loans and advances stood at Dh19.2 billion, up 2.7 per cent over December 31, 2011 and an increase of 9.8 per cent compared to March 31.
Rakbank CEO Graham Honeybill said, “We are pleased with the results which reflect the continued growth in the bank’s customer base across key business segments. By constantly focusing on delivering the highest levels of customer service and enhancing our portfolio of innovative products and services, we are confident that the bank will continue to achieve positive results.”
During the past three months, the bank had taken adequate provisions on its loan portfolio. The total impairment charge for the quarter at Dh60.5 million, is lower compared to last year and the previous quarter, he stated.
According to Honeybill, the non interest income stood at Dh154.3 million, down 28 per cent compared to last year. "This is primarily because of the impact of regulatory restrictions imposed since May 2011 on fees and charges," he stated.
"However the bank has achieved a steady growth in various other fee income lines such as investment income, foreign exchange and others. As a result it achieved a growth of 8.5 per cent compared to the previous quarter," he added.
The bank has continued to follow a measured approach to expansion, with a focus on maintaining a consistent and sustainable level of growth through a careful lending policy and actively seeks new lending in its chosen fields and continues to see growth in the small business and personal finance segments.
During the past three months, the bank has taken adequate provisions on its loan portfolio. The total impairment charge for the quarter at Dh60.5 million, is lower compared to last year and the previous quarter.
Honeybill said the bank continues to invest in product development, technology and other delivery channels, in order to remain at the forefront of online and mobile banking in the UAE.
"The bank's total assets as of March 31 surged to Dh24.7 billion, registering an increase of Dh198.4 million over last qaurter and Dh2.4 billion increase compared to the same period last year."
During the quarter loans and advances grew by Dh508 million, and investments grew by Dh442.9 million. These have been funded through increase in customer deposits, shareholders equity and reductions in placements with banks, he added.-TradeArabia News Service
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