Jul 23 2012
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RAKBANK reports Dh668.7m first half profit
Monday, Jul 23, 2012
Dubai: The National Bank of Ras Al Khaimah ( RAKBANK ) has reported a net profit of Dh668.7 million for the first half of 2012, up 13.5 per cent compared to Dh589.14 million reported in the same period last year.
For the second quarter of this year, the bank’s net profit rose 16 per cent, helped by higher interest income and lower impairment charges. Net income climbed to Dh343.4 million from Dh296 million year earlier, the bank said in a statement to the Abu Dhabi bourse .
Net interest income grew 13 per cent to Dh550 million, while impairment provisions fell to Dh 54 million in the second quarter from Dh70 million a year earlier.
RAKBANK’s net interest income grew 17 per cent during the first half of the year Dh1.1 billion. Gross loans and advances stood at Dh19.9 billion, an increase of 6.4 per cent over December 31, 2011. The bank said its deposit growth and costs have been managed effectively to maintain the expected margins, and prudent levels of liquidity.
“The Bank will continue its focus on providing a full range of evolutionary products and services to its customers supported by excellent customer service,” said Honeybill. “The recent introduction of the core banking system will enhance the Bank’s capability to grow its customer base and fee income.”
The bank’s loans and advances grew by Dh1.18 billion during this half year, and this growth has come across small business and personal finance.
Deposits have grown by Dh1.99 billion enabling the bank to maintain healthy loans to deposit and liquidity ratios. The Bank’s advances to deposits ratio and liquidity ratio stands at 92.4 per cent and 20.3 per cent respectively.
The bank made more than Dh640 million of new investments in various debt instruments during the current half year. Investment book, as a result grew by Dh 423 million, net of maturing instruments.
RAKBANK had retained 70 per cent of its 2011 profits. This enabled the bank to boost its capital base by Dh787 million and as a result Dh300 million of the subordinated debt, categorised as tier 2 capital was repaid to Ministry of Finance. At the end of the second quarter, the bank’s tier 1 and total ratio stands at 20 per cent and 21.8 per cent respectively.
By Babu Das Augustine Deputy Business Editor
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