RAK Bank profit jumps 37.5% as interest income gains

  • Share via facebook
  • Tweet this
  • Bookmark and Share
RAK Bank said it saw signs of recovery in the region's economic environment

RAK Bank said it saw signs of recovery in the region's economic environment

National Bank of Ras al-Khaima,h the UAE lender known as RAK Bank, on Sunday said net profits rose 37.5 percent to AED729.8m ($198.69m) during the first nine months of 2010 bolstered by interest income.

Net interest income increased 35.5 percent year-on-year to AED1.2bn ($326.7m) and gross loans and advances rose to AED16.2bn ($4.41bn), a rise of 23.4 percent compared to the same period last year, the bank said in a statement.

Despite the bank’s loan provisions for the first nine of the year rising AED43.6m ($11.8m) to AED210.3m ($57.25m), it said it was “seeing an improvement in trends quarter-on-quarter.”

“With some recovery signs seen in the current economic environment, the bank continues to seek good lending opportunities and remains receptive to market opportunities,” said Graham Honeybill, general manager, RAK Bank.

Income from fees, commission and other non-loan sources grew 22.9 percent from the year-earlier period to AED459.7m ($125.15m) between January and September 2010.

An increase in shareholders’ equity and customer deposits saw the bank’s asset book grow to AED21.6bn ($5.88bn), an increase of 31.6 percent compared to the same period last year.

In the first nine months of the year, RAK Bank bought $53.5m of its own bonds from the market and stated that it intends to repay the balance of owed as part of its bond programme from its own internal resources.

The banks’ portfolio of investments stood at AED358.8m ($97.68m) on September 2010, with AED56.3m ($15.32m) maturing during the last nine months.

The lender said in a statement that it “intends holding all investments to maturity and does not anticipate any loss on any of its investments, all of which are in the names of domestic institutions.”

Established in 1976, RAK Bank has around 340,000 customers and 28 branches across the UAE.

Related:

Market Performance

National Bank of Ras Al Khaimah
8.4
-0.05 -0.59 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Dubai mulls rule change to lure more domiciled funds

Dubai mulls rule change to lure more domiciled funds

Proposed rules would create a new class of funds in the Dubai...

Gulf's rift over Qatar may slow investment, reforms

Gulf's rift over Qatar may slow investment, reforms

Analysts suggest dispute may not hurt immediately but could impact...

Dodgy data obscure reality of Gulf's economic boom

Dodgy data obscure reality of Gulf's economic boom

Economists say that as Gulf opens wider to foreign investment...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams