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RAKBANK Achieves 13 Per Cent Growth in First Quarter

DUBAI - The National Bank of Ras Al Khaimah on Monday reported a first-quarter net profit of Dh160.4 million, a 13 per cent improvement over the same period last year.

The bank, known as RAKBANK, boosted its earnings for the quarter ending March, in spite of adverse market conditions, with its personal banking business growing in line with the company’s targeted expansion.

“RAKBANK has continued to actively seek new lending opportunities and has seen growth in a number of segments, including those of small businesses, personal loans, mortgages and credit cards,” said General Manager Graham Honeybill. Though one of the country’s smallest banks, RAKBANK issues more credit cards than any 
of its peers.

Its net interest income increased by 34 per cent from the same period last year, reaching Dh248 million, while its gross loans and advances stood at Dh11.9 billion, for a 30 per cent rise over the first quarter of 2008. Although interbank lending rates have eased, the cost of customer deposits has remained high, hampering profitability compared to previous years, Honeybill said.

“Nevertheless, and in spite of the market’s challenging conditions, RAKBANK’s business has registered healthy growth in the first quarter across its product offering.”

Income from fees, commissions and other sources totalled Dh118 million, marginally higher than last year.

RAKBANK’s total assets at the end of the quarter were Dh14.5 billion, a 23 per cent rise from the end of the first quarter of 2008. The growth in assets was mainly due to a Dh600 million year-on-year increase in loans and advances.

The bank’s capital adequacy ratio -- a key measure of liquidity -- stood at 16.45 per cent at the end of the quarter, against the minimum of 10 per cent prescribed by the UAE Central Bank. RAKBANK said it has no direct or indirect exposure to any sub-prime or similarly structured product.

· abdulbasit@khaleejtimes.com