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RAKBank's earnings jump 33% in Q1
- PUBLISHED: Sun 29 Apr 2018, 9:35 PM UPDATED: Sun 29 Apr 2018, 11:45 PM
The National Bank of Ras Al-Khaimah (RAK Bank) on Sunday announced a net profit of Dh205.1 million for Q1 2018, an increase of Dh50.4 million - or nearly 33 per cent - over the first quarter of 2017, helped by drop in provisions for impairments and increase in net interest income and net income from Islamic banking. Its assets increased 14.6 per cent to Dh49.1 billion at the end of March 31 2018.
Gross loans and advances closed at Dh33.6 billion, with a 10.3 per cent increase over the same period of last year.
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"We have continued our efforts in the first quarter to strengthen and diversify our balance sheet and this is paying dividends in terms of lower provisions. After peaking by the end of 2016, provisions have continued their downward trajectory, reducing by 1 per cent when compared with the fourth quarter of 2017 and 17.4 per cent from the first quarter of 2017," said Peter England, CEO, RAK Bank.
Provisions for impairments fell 17.4 per cent to Dh364.2 million at the end of Q1 2018 from Dh440.7 million at the end of same quarter last year.
The bank's net interest income and net income from Islamic financing increased by 1.1 per cent compared to same period last year. Likewise, non-interest income was down Dh39.4 million to Dh243.9 million mainly due to a decrease of Dh29.1 million in investment income and Dh14.3 million in net fees and commission income.
Assets rose by 14.6 per cent to Dh49.1 billion compared to 31 March 2017. Customer deposits grew by 11.9 per cent to Dh33.3 billion compared to the 31 March 2017 and this was mainly due from the rise of Dh3.1 billion in time deposits.
The bank's total capital adequacy ratio as per Basel III stood at 18.64 per cent compared to 20.69 per cent at the end of the previous year. Listed on Abu Dhabi Securities Exchange, RAK Bank shares closed unchanged at Dh4.4 on Sunday. - waheedabbas@khaleejtimes.com
