Rakbank Q3 net profit jumps 14.5pc
Ras Al Khaimah, October 21, 2012
UAE-based National Bank of Ras Al-Khaimah (Rakbank) said it has registered a net profit of Dh1.04 billion ($283 million) for the third quarter, up 14.5 per cent over the same period last year.
Announcing the results for the nine months ended September 30, Rakbank said its net interest income for the period increased by 14 per cent to Dh1.7 billion compared to the same period last year, and net loans and advances grew by 9.36 per cent.
With deposits up by 12.5 per cent at Dh2.29 billion, the bank was able to maintain healthy liquidity and loan to deposit ratios at 19.4 per cent and 91.9 per cent respectively.
The UAE bank also registered solid quarterly growth with a 7.6 per cent jump over last quarter.
The RAK-based lender continued to pursue a consistent and sustainable level of growth through a prudent lending strategy, while seeking new opportunities in the small business and personal finance segments.
Commenting on the performance, Rakbank CEO Graham Honeybill said, “The positive results reported for the nine monthsreflect the continued growth in our customer base as a direct result of the bank’s full range of evolutionary products and services supported by superior customer service.”
The recent replacement of Rakbank’s core banking system was another milestone in enhancing customers’ experience by ensuring a faster, smoother, and more efficient service, stated Honeybill.
“The technology upgrade helps support the bank’s portfolio of e-solutions for customers and demonstrates the bank’s commitment to achieving excellence in customer service, which is the driving force behind Rakbank’s solid reputation and high levels of customer loyalty,” he added.
Gross loans and advances increased by 9.36 per cent to Dh20.4 billion during the nine months. However, the non-interest income reached Dh489.7 million, down by 4 per cent compared to the same period last year primarily because of the impact of regulatory restrictions on fees and charges imposed by the Central Bank since May 2011.
However, Rakbank’s investment income, foreign exchange, and other fee lines achieved a healthy growth of 18.9 per cent in fee income compared to the third quarter of 2011, said Honeybill.
“As a leading retail and small business bank, we are constantly looking for new ways to boostthe Bank’s capability to further grow our customer base and fee income. The introduction of Islamic Banking products and services planned for early 2013 will aim to capture a wider market by expanding the suite of Rakbank offerings,” he added.-TradeArabia News Service