Healthier loan book boosts RAKBank profits

BANK REPORTS CONSOLIDATED NET PROFIT OF DH671.8M FOR FIRST NINE MONTHS OF 2018, UP 10.8% OVER SAME PERIOD LAST YEAR

The National Bank of Ras Al Khaimah (RAKBank) Group yesterday reported a consolidated net profit of Dh671.8 million for the first nine months of 2018, up 10.8 per cent over the same period last year.

For the third quarter the bank generated a profit of Dh240.1 million, up 6.8 per cent year on year and a 6 per cent increase over the second quarter of 2018.

“The ample liquidity and rise in customer deposits have reflected in the bank’s solid progress in the wholesale banking, business banking, personal banking, and Treasury,” said Peter England, RAKBank CEO.

Total assets were up 12.4 per cent to Dh51.8 billion compared to the third quarter 2017.

Gross loans and advances and investments increased by Dh2.5 billion and Dh2.4 billion respectively compared to September 30, 2017.

Growth of corporate loans from the wholesale banking segment contributed to the increase in the gross loans and advances by 7.7 per cent year-on-year.

Customer deposits grew by Dh3.2 billion to Dh34.6 billion, a 10.1 per cent growth over September 2017.

Operating income was Dh2.8 billion for the nine months ended September 30, 2018.

Operating income increased by 1.2 per cent in the third quarter of 2018 compared to the same period last year.

The group’s net interest income for nine months increased by 1.5 per cent to Dh2.1 billion while non-interest income fell 8.2 per cent due to lower investment income because of decreases in sales of investments as a result of challenges in the bond market.

“The trends for the nine months of 2018 are showing positive signs, and the impairments are on a downward trend. The bank remains very committed to its diversification strategy which is now delivering growth in net interest income whilst lowering the bank’s risk profile,” said England.

Operating expenses increased 2.9 per cent year-onyear and the cost to income ratio for nine months closed at 39.3 per cent.

Impairments were lower by Dh135.1 million for the nine months ended September 2018 compared to the same period of 2017.

The bank’s Basel III capital adequacy ratio stood at 18.5 per cent at the end of September 2018. This level of capital provides the Bank with ample room for growth in 2018.