Financial results 30 June 2010
The National Bank of Ras Al-Khaimah (P.S.C.) (RAKBANK) has reported a net profit of AED 468.3 million for the six months ended 30th June 2010, reflecting a 36.2% growth compared to the same period in 2009.
Commenting on the results, Mr. Graham Honeybill, General Manager said "The Bank's second quarter result reflects the growth in the Bank's customer base across a wide range of personal and small business segments which is emphasised by our continual focus on excellent customer service."
Funded Income grows by 42.2%
Net interest income at AED 767.0 million grew by 42.2% compared to 30th June 2009. 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 and actively seeks new lending in its chosen fields and has seen growth in the small business and personal finance segments.
Gross Loans and advances stood at AED 15.5 billion an increase of 11.8% over 31st December 2009 and an increase of 24.1% compared to 30th June 2009.
During the six months the bank has taken adequate provisions on its loan portfolio. Total impairment charge for the six months at AED 148.8 million was higher by AED 71.6 million compared to the same period last year. We are, however, seeing an improvement in the trends. The Total impairment charge for the second quarter of the year was AED 67.5 million compared to a first quarter charge of AED 81.3 million.
Fee, commission and other income
Fee, commission and other income at AED 303.2 million was increased by 23.6% compared to the previous half year. The Bank will continue its focus on providing a full range of products to its customers supported by excellent customer service.
The Bank continues to invest in product development, technology and other delivery channels and remains in the forefront of Emiritisation in the banking industry.
Assets & Liabilities
Total assets as at 30th June 2010 were AED 19.8 billion, an increase of 15.8% over 31stDecember 2009 and a 28.9% increase compared to 30th June 2009. The main growth in assets was seen in loans and advances.
During the six months investments totalling AED 56.3 million matured or were disposed of. Portfolio as at the end of June was AED 354.1 million. 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 growth in the asset book has been supported by a combination of increases in customer deposits and shareholders' equity. Customer deposits were up by AED 2.52 billion from 31st December 2009 from a combination of term and transaction deposits.
The Bank's advances to deposits ratio comfortably stood at 94.9% as per the Central Bank of UAE guidelines. During the half year bank purchased USD 53.5 million of its own bonds from the market to reduce future exposure. The balance of the programme is due on 6th of October 2010, which the bank intends to repay from internal resources.
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 3.2 billion at the end of June.
The Capital adequacy ratio as at 30th June 2010 was 20.7%
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