UAE's RAK Bank 2012 profit up 16.6%

Yearly profit hits US$381m, with 10.4 percent growth in loans and advances

The National Bank of Ras Al-Khaimah (RAK Bank) reported net profit last year rose 16.6 percent year-on-year to AED1.4028bn (US$381m), the UAE lender announced on Sunday.

The bank’s interest income grew by 12.5 percent year-on-year to AED2.23bn, on the back of a 10.4 percent growth in loans and advances, which stood at AED20.3bn over the 12 months of 2012. Overall revenues climbed 9.7 percent to AED2.9bn.

“2012 marks a very successful year for RAK Bank,” said Graham Honeybill, CEO. “Not only did it see the bank’s implementation of its revamped core banking system, but 2012 also witnessed the preparations for the launch of RAK Bank’s Islamic Banking window.”

The bank’s conservative approach to lending helped credit losses to fall 30 percent year-on-year, meaning non-performing loans remained steady, accounting for 2.5 percent of gross loans on its books at the end of 2012.

Deposits grew 13.3 percent to AED20.7bn which, while costs also rose 13 percent on the bank of new branches in Sharjah and Abu Dhabi and over 50 additional ATMs.

The rise in profits and revenue meant the back was able to pay back AED684m in startup debt to the Ministry of Finance.

Based on these results, the lender’s directors have recommended a stock dividend of 10 percent and a cash dividend of 40 percent, while 56 percent of the net profit will be retained.

Related:
Companies
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!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed
sponsoredTracking