RAKBank's 9-month net profit jumps 25% to Dh839.4m

The National Bank of Ras Al Khaimah (RAKBank) posted a net profit of Dh839.4 million for the nine-months period ended September 30, 2019, a growth of 24.9 per cent year-on-year.
The third quarter of 2019 generated a profit of Dh284.5 million, an increase of 18.5 per cent year-on-year. The gross loans and advances have grown by 4.3 per cent year-to-date to Dh36.3 billion.
"We achieved another very good result with total income for the third quarter of 2019, exceeding Dh1 billion and net profit reaching Dh284 million, which was an 18.5 per cent increase over the same period of last year. Looking at the year-to-date results, net profit increased by 24.9 per cent to Dh839 million on the back of strong income growth and a continued reduction in provisions despite a challenging external environment," said Peter England, CEO of RAKBank.
Total income grew by 5.8 per cent compared to the same period last year and stood at close to Dh3 billion for the first nine months of 2019. The stand out performer of the year continues to be fee income, with all business units recording solid growth in this area relative to their performance in 2018, leading to a 17.9 per cent increase in this line.
Net interest income and net income from Islamic finance for the first nine months of 2019 was Dh2.1 billion, growing by 1.2 per cent year-on-year. Non-interest income improved by Dh138 million year-on-year to Dh907 million, mainly due to an increase of Dh74 million in Forex & Derivative income and Dh54 million in fee and commission income. Operating expenses increased 5.6 per cent year-on-year and the cost to income ratio for the period closed at 39.2 per cent. Gross loans and advances increased by Dh1.5 billion to Dh36.3 billion, which is a rise of 4.3 per cent year-to-date, which contributed to an increase of the bank's total assets by 6.8 per cent to Dh56.3 billion compared to the end of 2018. In addition, customer deposits grew by Dh2.3 billion to Dh36.5 billion, a 6.8 per cent growth compared to the end of 2018.
- waheedabbas@khaleejtimes.com