RAKBank yesterday reported a Dh1.20 billion net profit for 2011, an increase of 20 per cent over 2010. The bank said its earnings were impacted as a result of the Central Bank\'s recently introduced guidelines on personal lending. But it swiftly refocused towards small and medium enterprises (SME) and other lending opportunities within the consumer segment. \"The curtailment of lending to UAE nationals and associated fee reduction across the majority of consumer products impacted the bank\'s net revenues by Dh150 million,\" the bank said in its directors\' report. Article continues below Despite adverse market conditions, the bank said it has managed to report strong results. \"RAKBank\'s very satisfactory results at a time of continuing difficult market conditions are a testament to the bank\'s consistent business strategy and robust performance,\" said CEO Graham Honeybill. \"RAKBank\'s profitability is the result of the bank\'s prudent policies and underwriting processes.\" The bank\'s net interest income increased by 23.4 per cent over 2010 to Dh1.98 billion. Total advances increased by 12 per cent over the previous year to Dh18.4 billion, while total assets jumped by 14.6 per cent to Dh24.5 billion. Equity increase The growth in the asset book was reported by a combination of increases in shareholders\' equity and customer deposits, with total deposits growing 11.73 per cent to Dh18.3 billion compared with Dh16.4 billion in 2010. The bank acknowledged that its commission incomes were impacted by the new rules on retail lending, but other income grew by 7.9 per cent to Dh652.9 million. The bank said it followed very conservative guidelines and took adequate provisions on its portfolio. Net credit losses increased by 11.58 per cent to Dh301 million from Dh268.8 million in 2010. The bank reported strong capital and liquidity ratios for the year. The liquidity ratio for 2011 stood at 19 per cent compared to 18.2 per cent in 2010. The bank\'s Tier 1 capital ratio as per Basel I at the end of the year was 17.2 per cent against a current minimum of 12 per cent of Tier 1 capital set by the Central Bank. Directors have recommended a stock dividend of 10 per cent and a cash dividend of 25 per cent. The bank\'s management said it is well placed to meet the continuing challenges it expects to face during 2012. \"There are numerous good business opportunities in the market and RAKBank is well positioned to take advantage of them during 2012,\" said Honeybill.