Rakbank reports nine months profit fall to Dh44.5 million
The National Bank of Ras Al-Khaimah, recently re-branded as Rakbank, reported that its net profit for the first nine-months of 2001 dropped 7.6 percent as compared to the corresponding period the previous year, from 48.221 million Emirati dirhams ($13.12 million) in 2000 to Dh44.522 million ($12.12 million) in 2001.
The fall was attributed mainly to Dh10.680 million net provisions the bank has made against impairment of assets during this period, as compared with corresponding net provisions of Dh5.660 million the year before, reported Gulf News.
Increased costs were also attributed to the complete refurbishment of the bank’s 11 branches in line with its new identity, including a strong thrust into personal banking. The bank spent over Dh10 million on the development of new products, delivery platforms and manpower.
Between January and September 2001, interest income and operating income were higher at Dh124.024 million and Dh104.433 million, compared to Dh113.373 million and Dh84.898 million respectively in 2000. However, operating expenses this year were far higher at Dh49.232 compared to Dh31.017 million. The total assets of the bank grew from Dh1.865 billion as of end-2000 to Dh2.074 billion as of end-September 2001.
Rakbank slashed its monthly interest rate to one percent and scrapped the annual fee on its Visa Classic and Gold credit cards, making it the lowest rate in the region and among the lowest worldwide, a bank press release stated.
Last year, the bank launched RAKdirect, a 24-hour telephone banking service, with bank representatives visiting customers to assist with transactions. The bank also initiated a new auto loan plan, which offers customers joining until the end of this year competitive interest rates and a repayment period of up to five years. It offers a 'no down payment' option and also a free-for-life credit card.
Rakbank is a public joint stock company, headquartered in the United Arab Emirate of Ras Al-Khaimah. The bank is 50.11 percent owned by the government of Ras Al-Khaimah, 39.41 percent by UAE companies and nationals and 10.48 percent by the citizens of Kuwait.
Shares are publicly traded. Board consists of several members of the ruling family of the emirate of Ras Al-Khaimah and businessmen from UAE and Kuwait. The bank is engaged in providing retail and corporate banking services through a network of eleven branches in the UAE. —(menareoprt.com)
© 2001 Mena Report (www.menareport.com)