The National Bank of Ras Al Khaimah or RAKBank's consolidated net profit rose 2.2 per cent year-on-year to Dh716.2 million in the half-year ended June 30, 2015, on stronger interest and non-interest revenues.
The lender's total income grew by 12.2 per cent year-on-year to Dh1.9 billion at the end of the half year period as a result of an increase of 12.9 per cent in net interest income and 9.8 per cent in non-interest income.
Ras Al Khaimah-based financial institution reported 16 per cent year-on-year growth in loans and advances to Dh27.7 billion in the half year period across most of its retail and business banking portfolios, the lender said in a statement.
"SME and commercial lending under our business banking segment, which has been a focus for the Bank since early 2014, recorded a jump of 115 per cent in gross loans and advances year-on-year, "said Peter England, RAKBank chief executive officer.
Total assets grew by Dh3.2 billion compared to 31 December 2014 mainly as a result of strong growth in gross loans and advances which were up to Dh27.7 billion.
In May 2015, RAKBank acquired 79.23 per cent of Ras Al Khaimah National Insurance Company. "With a controlling stake in RAK Insurance, we look forward to collaborate on developing and providing insurance products to enhance revenue and market share and ensure that customers enjoy a more wholesome experience," said England. Total assets stood at Dh38.1 billion on 30 June 2015, the lender said.
Customer deposits grew to Dh26.1 billion during the first half of 2015 compared to 31 December 2014.
The Bank's capital adequacy ratio as per Basel II requirement at the end of the quarter is 23.7 per cent, comprising entirely of Tier 1 capital. This is against a current minimum total capital ratio of 12 per cent prescribed by the Central Bank in the UAE.
Operating expenses inched up three per cent year-on-year at the end of first half. The consolidated operating profit before provision for impairment jumped by 19.2 per cent to Dh1.1 billion while the total impairment charge for the half year stood at Dh426.9 million compared to Dh258.4 million in the first half of 2014.
"As a result of growth in overall lending volumes, Bank's impairment charge was higher than what we saw in the previous year however our non-performing loans remained steady at 2.7 per cent," the chief executive said.
"Despite rising competition in the UAE banking market, the Group continues to record further improvement in year-on-year operating income and expense ratios," said England.
Total shareholder's equity totalled Dh7 billion including six months' profit. "Looking ahead, we will continue to aggressively grow the bank's top line in the second half of the year while strengthening our branch and ATM network across the country and launching additional digital banking solutions," added England.
Source: Khaleej Times