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Sun 2 May 2010 04:19 PM

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RAKBank profit up 42% on lending activity

Abu-Dhabi-listed RAKBank said net profit rose to $62.09m in the first quarter.

RAKBank profit up 42% on lending activity
HEALTHY FIGURE: RAKBank said net profit rose to AED228.1m ($62.09m) in the first quarter, compared with AED160.3m ($43.6m) for the year-ago period.

UAE lender National Bank of Ras al-Khaimah (RAKBank) on Sunday said first-quarter net profit rose 42 percent, boosted by an improvement in lending activity and higher customer deposits.

Abu-Dhabi-listed RAKBank said net profit rose to AED228.1m ($62.09m) in the first quarter, compared with AED160.3m ($43.6m) for the year-ago period.

"Although economic recovery is subdued there remain good lending opportunities," said general manager Graham Honeybill in a statement.

First-quarter loans rose 6.6 percent compared to the previous quarter, while customer deposits were up by AED1.2bn ($327m) compared to the previous quarter.

The bank booked AED81.3m ($22m) in provisions on its loan portfolio for the quarter, a strong increase compared to the same period last year.

"We are, however, seeing an improvement in future trends," the bank said.

Most UAE banks' results have suffered from a sharp increase in provisions in the past year, as a result of the local and global economic slowdown, as well as a regional real estate downturn. (Reuters)

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