RAK Bank yesterday reported a net profit of Dh296 million for second quarter of 2011, up by 23 per cent compared to the same quarter last year. While the bank\'s net interest income for the second quarter increased by 23 per cent to Dh488.09 million, fee and commission income declined 10 per cent to Dh121.24 million compared to the same quarter last year. RAKbank reported a net profit of Dh589.1 million for the six months ended June 30, 2011, reflecting a 25.8 per cent growth compared to the same period in 2010 During first six months of the year, the bank\'s net interest income grew by 21.7 per cent compared to the same period last year to reach Dh933.3 million. Gross loans and advances stood at Dh17.9 billion, an increase of 6.7 per cent over December 31, 2010 and an increase of 15.7 per cent. Article continues below \"The bank\'s six months result reflects the growth its customer base across a wide range of personal and small business segments,\" said Graham Honeybill, RAKbank Chief Executive Officer. Despite the recent change in retail banking regulations that curtailed bank fees and brought down the lending limits to retail customers, RAKbank reported Dh307.9 million fee and commission income for the first of this year, up 12.6 per cent to the same period last year. \"Following the introduction of the new Central Bank of the UAE guidelines for the retail banking segment, the Bank is diversifying its product range and expanding further into business customer segments,\" the bank said in a statement. Increasing investments RAKbank is increasing its investments in product development, delivery channels, and technological integration to expand its e-solution portfolio. \"The bank remains vigilant and well positioned to benefit from changing trends and to take advantage of business opportunities, including online ventures, as and when they arise,\" added Honeybill. With a positive outlook on the market, RAKbank continues to expand its branch network across the UAE to complement its thrust in online services. It has added two branches earlier in 2011 in Dubai and Abu Dhabi. In the second quarter of this year the bank\'s provisions for impairment of loans and advances net of write back increased 3.2 per cent to Dh69.7 million compared to Dh67.5 million. At the close of the first half of the year total impairment charges were Dh148.3 million compared to Dh148.8 million a year ago. Total assets of the bank were at Dh22.6 billion, up by 5.8 per cent at the close of first half of the year over December 31, 2010. During the six months, RAKbank purchased investments worth Dh349.1 million and investments totalling Dh55.1 million matured. No loss anticipated Total investments stood at Dh1.1 billion at the end of June 2011. \"The Bank 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,\" the bank said in a statement to Abu Dhabi Securities Market The bank\'s advances to deposits ratio at the close of second quarter was 95.2 per cent and the liquid asset ratio was 16 per cent of total assets.