Rakbank sees Q1 net profit soar by 28.5%

Ras Al Khaimah's main lender posts $79.7m net profit for the first three months of 2011

Rakbank has reported a net profit of AED293.1m for the first quarter of 2011.

Rakbank has reported a net profit of AED293.1m for the first quarter of 2011.

Rakbank on Tuesday reported a net profit of AED293.1m ($79.7m) for the first quarter of 2011, a 28.5 percent growth compared to the same period in 2010.

The net profits announced by the bank, which is 52 percent owned by the Ras al Khaimah government, were also 7.4 percent higher than in the previous quarter.

"The bank's first quarter net profit reflects the growth in Rakbank's customer base across a wide range of personal and small business segments," said Graham Honeybill, Rakbank general manager in a statement.

Rakbank's net interest income grew by 19.4 percent to AED445.2m while gross loans and advances stood at AED17.6bn, an increase of 4.8 percent compared to the end of last year.

Fee and commission income was also up by 34.9 percent on the back of increased volumes of processed business year-on-year.

Total impairment charges for the quarter, which stood at AED78.6m, were lower by AED2.6m compared to the same period last year, it added.

Total assets as of the end of March stood at AED22.3bn, an increase of 4.3 percent compared to the end of 2010.

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