RAK Bank posts 10% jump in Jan-Sept net profit

PROFITS UP: RAK Bank's nine-month profits rose 10.4 percent, compared to the same period in 2008.

RAK Bank said on Wednesday that net profit in the first nine months of the year rose 10.4 percent following growth in small business finance, personal loans, mortgages and credit cards.

The Ras Al Khaimah based bank said net profit in the nine months ended September 30 increased to AED530.7m ($144.5m) compared with the year-earlier period.

“By continuing to seek good lending opportunities, we have strengthened our position as one of the largest credit card providers in the country and an important provider of mortgage and SME finance,” said general manager Graham Honeybill.

The bank said that its liquidity was at a comfortable level but that a further fall in the interbank lending rate was necessary to increased lending and stimulate the economy.

“We are beginning to see signs in the market that economic conditions are slowly improving and the challenges of the financial crisis are easing,” said Honeybill.

RAK Bank set aside AED167m for impaired loans in the period and said that leading indicators suggest that delinquencies are declining.

If current projections are confirmed by future results, there would be a proportionate decline in provisioning next year, it said.

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