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Tue 24 Oct 2017 01:08 PM

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UAE's RAKBANK posts 9% rise in net profit to $165m

National Bank of Ras Al Khaimah says still committed to SME funding despite 'challenges'

UAE's RAKBANK posts 9% rise in net profit to $165m

The National Bank of Ras Al Khaimah (RAKBANK) has announced a 9.4 percent growth in net profit to AED606.3 million ($165 million) for the first nine months of 2017.

The third quarter of 2017 generated a profit of AED224.8 million, which was more than double (up 106.7 percent) the year-earlier period.

The bank said in a statement that a 12.5 percent rise in gross Loans and advances led to an increase in total assets by 8.3 percent to AED46.1 billion. Additionally, customer deposits also grew by 7 percent to AED31.5 billion.

RAKBANK CEO, Peter England, said: “All the various business segments have made solid progress throughout the year. Whilst diversifying our loan book and growing into new areas, the bank remains very committed to the SME segment despite the challenges faced in this area in the past 2 years.”

Total income increased by 1.2% for the third quarter compared to Q3 2016 while operating expenses increased by 6.6 percent year-on-year as a result of investments in new lines of business as well as continue strengthening of compliance and risk, and the cost associated with improvements in debt recovery, he added.

The bank said impairments continued their downward trajectory from its peak in the third quarter of 2016, declining by 27.8 percent in the third quarter of 2017 compared to Q3 2016 and is down by 12 percent in the nine month period.

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