RAKBANK Reports AED 729 million Profit for First Nine Months of Year
RAKBANK has reported a net profit of AED 729.8 million for the nine months ended 30th September 2010, reflecting a 37.50% growth compared to the same period in 2009.
"RAKBANK has maintained a robust performance in the nine months of 2010, affirming the bank's solid business model and prudent banking policies," said Graham Honeybill, RAKBANK General Manager. "With some recovery signs seen in the current economic environment, the Bank continues to seek good lending opportunities and remains receptive to market opportunities."
During the year, the Bank's net interest income grew by 35.5% compared to the previous year to reach AED1.2 billion. Gross Loans and advances stood at AED 16.2 billion, an increase of 16.9% over 31st December 2009 and an increase of 23.4% compared to the same period last year.
Fee, commission and other income grew by 22.9% to AED 459.7 million compared to the same period in 2009. Total assets as of 30th September 2010 stood at AED 21.6 billion, an increase of 25.9% over 31st December 2009 and a 31.6% increase compared to 30th September 2009. Growth in the asset book was a result of a boost in loans and advances, supported by a combination of increases in shareholders' equity and customer deposits, which were up by AED 3.9 billion to AED 16.8 billion from 31st December 2009 from both term and transaction deposits.
"The Bank has continued to follow a measured approach to expansion, with a focus on maintaining a consistent and sustainable level of growth through a careful lending policy," added Honeybill. "RAKBANK actively seeks new lending in its chosen fields and has seen particular growth in the small business and personal finance segments."
During the nine months, RAKBANK has taken adequate provisions on its loan portfolio. Despite an increase of AED 43.6 million in total impairment charges compared to the same period last year, reaching AED 210.3 million as of September 30, the Bank is seeing an improvement in trends quarter-on-quarter.
The Bank's advances to deposits ratio comfortably stood at 93.4% as per the Central Bank of UAE guidelines. During the nine months period, the Bank purchased USD 53.5 million of its own bonds from the market. The balance of the programme is due on 6th of October 2010, which the bank intends to repay from internal resources.
Also during the nine months, investments totalling AED 56.3 million matured or were disposed of and the Bank's portfolio stood at AED 358.8 million by the end of September 2010. RAKBANK 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 Share capital of the Bank increased to AED 1,154.4 million up from AED 962.0 million after distribution of a 20% stock dividend. Total shareholder's equity stood at AED 3.4 billion at the end of the nine months period.
RAKBANK's Capital Adequacy Ratio is well above the requirement of the Central Bank as of 30th September 2010 at 19.7%.
The Bank will continue its focus on providing a full range of products to its customers supported by award-winning customer service. "RAKBANK continues to invest in product development, technology and other delivery channels and remains in the forefront of Emiritisation in the banking industry," concluded Honeybill.
- Need some space? UAE's banking sector is getting too crowded
- Bank funding in the Middle East doesn't boil down to liquidity alone
- Why is the Israeli shekel so weak?
- What doesn't kill you, makes your stronger: why the Arab Bank is likely to emerge from the Israeli lawsuit 'unscathed with flying colors'
- Too foreign? An inside look into the struggles of foreign banks in Saudi Arabia