RAKBank Posts 13.5% H1 Profit Gain

The UAE-based lender reported a net profit of Dhs668.7 million for the first half of the year.

The National Bank of Ras Al-Khaimah (RAKBank) reported a net profit of Dhs668.7 million for the half year ended 30th June 2012, a 13.5 per cent growth compared to same period last year, it announced in a statement.

Gross loans and advances stood at Dhs19.9 billion, an increase of 6.4 per cent over 31st December 2011 and an increase of 11.5 per cent compared to 30th June 2011. The total impairment charge for the six months stood at Dhs114.6 million, the bank said.

Over Dhs640 million of new investments were made in various debt instruments during the current half-year.

“We are pleased with the positive results reported for the first six months as they reflect the continued growth in our customer base,” said Graham Honeybill, CEO, RAKBank.

“The bank will continue its focus on providing a full range of evolutionary products and services to its customers supported by excellent customer service,” he added.

While net interest income during the first half of the year grew 17 per cent year-on-year to Dhs1.1 billion, non interest income stood at Dhs320.1 million, down 13 per cent during the period.

“This is primarily because of the impact of regulatory restrictions imposed since May 2011 on fees and charges,” the bank said.

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,” it added.

Total shareholder’s equity stood at Dhs4.96 billion at end of June after distribution of cash dividend of Dhs415.6 million for the year 2011.