The National Bank of Ras Al Khaimah (Rakbank) reported a 27.5% growth in net profit for the first quarter of the year.

Total net profit for the first three months of 2024 reached AED 574.2 million ($156 million), which is also up by 39.7% compared to a year earlier on a pre-tax basis, the lender said in a statement on Friday.

Net interest income went up by 11.5% to AED 879.5 million, while gross loans and advances grew by 11.7% and customer deposits by 19.5%.

Corporate loans and advances also crossed AED 10 billion for the first time.

The lender also noted that shareholder returns remain strong, with return on equity at 21.4% and return on assets at 3.1% during the quarter.

Its capital adequacy ratio stood at 17.2%, indicating that the bank remains liquid and well capitalised.

The bank’s wholesale banking business now represents 28% of its income and 40% of its profit before tax, while fee income grew by 9.6%.

The bank intends to continue to accelerate its investment in technology and data to serve its customers better, and at the same time keep a close eye on current “headwinds”, according to Raheel Ahmed, Rakbank Group CEO.

“While the UAE economy continues to demonstrate positive momentum and growth as we enter the second quarter of 2024, we closely monitor the headwinds of inflation, rising interest rates and geopolitical developments,” Ahmed said.

“We are closely assessing the impact of the unprecedented weather conditions on our customers and how best we can support them.”

(Writing by Cleofe Maceda; editing by Seban Scaria)
seban.scaria@lseg.com