RAKBank group posts Dh381.5M H1 net profit

dubai — The National Bank of Ras Al Khaimah (RAKBank) Group announced on Monday a consolidated net profit of Dh381.5 million for the first half of 2017. The group’s consolidated net profit for 2016 first half was Dh445.5 million.

The group said the second quarter of 2017 generated profit of Dh226.7 million, an increase of 16 per cent year on year and a 46.5 per cent increase compared with the first quarter net profit.

Gross loans and advances grew by 6.2 per cent to Dh31.6 billion for the half year ended 30 June 2017 with strong growth in wholesale banking book and steady growth in the Personal Banking and Business Banking segments.

Bank CEO Peter England said the trends for the first half of 2017 are showing continued positive signs where solid progress is made by all business units including wholesale banking, business banking, personal banking, and treasury.

“Total income for the second quarter of 2017 increased by 2.1 per cent over the previous quarter and impairments continue on a downward trend after peaking in third quarter 2016. Impairments are still relatively high reflecting the nature of our legacy book, however we expect continued improvements in this area as the year progresses,” said England.

The group’s total assets increased by 3.4 per cent to DhD44. billion compared to the end of 2016. This was due to an increase in gross loans and advances of Dh1.8 billion, partially offset by a decrease in investments of Dh497.6million.

“The healthy growth of corporate loans from wholesale banking and the steady progress of loans from the business banking and personal banking segments contributed to the increase of the gross loans and advances by 8.2 per cent year-on-year,” the group said.

The bank’s customer deposits grew by Dh1.2 billion to Dh30.6billion, a 3.9 per cent growth compared to the end of 2016. “Other than the financial performance, the bank continues to invest in strategic areas and initiatives. During the quarter, we commenced our partnership with C3 to open a completely new market segment where the bank began offering payroll solutions for both banked and unbanked employees of companies,” said England.

— issacjohn@khaleejtimes.com