The National Bank of Ras Al Khaimah (RakBank) has announced consolidated net profit of Dh270.2 million ($73.5 million) for Q1 2019, an increase of 31.7 per cent on Q1 2018 and by 10 per cent on the previous quarter.

Total Income of Dh1.0 billion increased by 8.5 per cent YoY and by 0.9 per cent on Q4 2018. As at 31st March 2019, total Assets stood at Dh53.5 billion, up 9 per cent YoY and by 1.6 per cent year-to-date, reported state news agency Wam.

Commenting on the results, Peter England, CEO of RakBank, said, "Total income for the first quarter 2019 exceeded Dh1 billion, which is only the second time in RakBank’s history that we have achieved such a result. This is a clear outcome of the Bank’s diversification strategy which commenced 4 years ago and is now delivering solid results.

"Non- interest income particularly was very strong for the first quarter rising to Dh317 million which is an all-time high, and was achieved by impressive results across all business lines especially our Treasury and Wholesale Banking / Financial Institutions units. Our diversification strategy has also helped our provision line to graduate down by 5 per cent YoY whilst retaining a coverage ratio in excess of 130 per cent. Cost to income remained stable at 38.4 per cent despite being impacted by an annual true-up of VAT and some other timing differences."

On a year-on-year basis, the total Operating Income improved by Dh78.4 million to Dh1.0 billion. Total Operating Income was up by Dh8.7 million compared to Q4 2018, mainly due to an increase in non-interest income by Dh27.7 million, which was partly offset by a Dh19.0 million decrease in net interest income and income from Islamic products, net of distribution to depositors, which totalled Dh683.8 million.

Interest income from conventional loans and investments increased by 9.3 per cent year-on-year, while interest costs on conventional deposits and borrowings increased by 41.3 per cent. Net income from Sharia-compliant Islamic financing decreased by 4.0 per cent and non-interest income improved by Dh 65.5 million to Dh 317.2 million, mainly due to an increase of Dh 32.7 million in net fees and commission income and Dh 31.6 million in forex and derivative income.