The National Bank of Ras Al Khaimah, RAKBANK, has reported a net profit of AED351.4 million ($95.67 million) for the third quarter (Q3), up 53.7% compared to Q3 2021, reflecting the highest quarterly net profit since Q3 2015.

 

The bank’s nine-month net profit recorded AED879 million, an increase of 64% YoY.

 

Compared to Q3 2021, total income increased by 13.6% to AED915.1 million, supported by a strong increase of 19.5% for the net interest income to AED652.8 million and an increase of 1.3% of the non-interest income to AED262.3 million.

 

Other financial highlights:

* Gross Loans & Advances totaled AED36 billion, showing an increase of 7.5% YoY and 5.3% YTD.

* Customer Deposits stood at AED40.3 billion, a boost of 8.8% YoY and 6.9% YTD.

* Well diversified asset growth and continued improvement in the UAE’s economic environment led to a 47.1% YoY reduction in impairments. 

* Net interest margins increased marginally to 4% and continue to be one of the highest in the Industry.

* The bank’s non-performing loans ratio is at 3.2% and continues to improve.

* Loan provision coverage ratio is at 156.5% remaining one of the strongest in the industry.

* Strong profitability metrics with annualized ROA and ROE of 2.0% and 13.9% respectively.

* With Capital Adequacy Ratio (CAR) at 17.0%, the bank remains well capitalised.

 

“This quarter we delivered a net profit of AED351 million, which is the highest since Q3 2015, as we continued on our path to sustainable growth & diversified business mix. Our operating Income is becoming well balanced and backed by robust balance sheet growth. We remain disciplined with cost, while reaping the benefits of our business mix shift through lower provisions. The RAKBANK team remains to be fully focused on providing the best service to our customers, while at the same time being relentlessly focused on delivering results, said Raheel Ahmed, CEO. 

 

“We continue to back entrepreneurs and start-ups and opened more than 8,000 new accounts for them YTD. We have also offered financing solutions to more than 3,800 SMEs in the last nine months and helped 800 customers to buy their homes.  Additionally we deepened existing relationships as evidenced by the growth in card spends and overall payments," he said. -TradeArabia News Service