The National Bank of Ras Al Khaimah (RAKBANK) reported a jump in its net profit for the first nine months of the year on the back of higher net fee and commission income.
Consolidated net profit for the period reached 534.7 million dirhams ($145.5 million), up by 21.9 percent from 438.6 million in the same period last year, the bank said in a statement to the Abu Dhabi Securities Exchange (ADX).
“There are several factors that led to the spike in the net profit throughout the year, which include a reduction in the provision for credit loss, along with an increase in non-interest income to 258.9 million on the back of a growth in the net fee and commission income by 14 million dirhams, as well as an increase in other operating income by 17.5 million dirhams,” the statement said.
Peter England, RAKBANK CEO, said the bank’s profitability grew significantly due to a “continual improvement” in asset quality, especially in the last two quarters, as well as improving economic conditions.
“The improvement in asset quality has come about due to the change of mix in our loan book, which we have been gradually implementing over the last few years, and also the significant improvement in the macro-economic environment,” he said.
The positive trend is expected to continue into the fourth quarter which, England said, will bode well for a “strong start to 2022”.
As of September 30, 2021, the bank’s total assets stood at 54.5 billion dirhams, up by 4.1 percent year on year.
(Writing by Cleofe Maceda; editing by Seban Scaria )
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021