UAE's National Bank of Ras Al Khaimah (RAK Bank) posted a Q2-2022 net profit of 307.3 million dirhams ($84 million), up 40% compared to Q1 2022.

The result easily beat analysts’ mean forecast of AED 259 million, according to data provider Refinitiv.

The bank said the net profit, the highest since 2015, was supported by lower cost of risk in a buoyant macro-economic environment. The lender also more than halved its impairment charges to AED 140 million, according to a statement.   

Compared to Q1-2022, total income increased by 12% to AED 815 million during this quarter, supported by 4.2% rise in net interest income to AED 563.0 million and an increase of 35% on the non-interest income to AED 252.0 million.

Net interest margin was stable at 3.9%, and among the highest among peers.

For H1-2022, the bank made a net profit of AED 527 million.

RAK Bank CEO Raheel Ahmed said that while the bank's outlook for H2 2022 remained positive, in line with the buoyancy in the UAE economy "... we continue to carefully monitor the rising interest rates, inflation & the current geopolitical tensions & its potential impact on our customers and clients..."

(Reporting by Brinda Darasha; editing by Seban Scaria)