The National Bank of Ras Al-Khaimah (RAKBANK) announced a consolidated net profit of AED 205.1 million, an increase of AED 50.4 million over the first quarter of 2017. The Total Assets stood at AED 49.1 billion, which is an increase of 14.6% compared to 31 March 2017. Gross Loans and Advances closed at AED 33.6 billion, with a 10.3% increase over the same period of last year. Total income has declined by 2.3% when compared to the last quarter of 2017, and dropped by 3.4% in contrast to the same period in 2017. 

Commenting on the financial results, RAKBANK CEO, Peter England, said: “We have continued our efforts in the first quarter to strengthen and diversify our balance sheet and this is paying dividends in terms of lower provisions. After peaking by the end of 2016, provisions have continued their downward trajectory, reducing by 1.0% when compared with the fourth quarter of 2017 and 17.4% from the first quarter of 2017. Top line income has largely stabilised as the decline during 2017 in terms of net interest income has halted and we should see a steady growth throughout the year.” 

England also commented, “Besides the financial performance, RAKBANK has participated in several initiatives throughout the first quarter of 2018. One of the Bank’s endeavours was hosting the launch of Metals Focus Gold 2018 Annual Report at our Headquarters. This momentous event was a statement of intent for RAKBANK to roll out its RAKGOLD initiative that will contribute to the future development of the region’s bullion market. Moreover, in line with its strategy of assisting businesses in the UAE, the Bank partnered with Etisalat through their ‘Hello Business Hub’, which is a one-stop location that enables small and medium businesses and start-ups to set up their operations in the UAE. In addition, the Bank is continuously committed to strengthen its Digital Banking services to customers where it partnered up with FEWA and SEWA to make a tedious task such as paying bills seamless via all its diverse touch points.”

Furthermore, the Bank’s net interest income and net income from Islamic financing increased by 1.1% compared to same period last year. Likewise, non-interest income was down by AED 39.4 million to AED 243.9 million mainly due to a decrease of AED 29.1 million in investment income and AED 14.3 million in net fees and commission income. The Total Assets rose by 14.6% to AED 49.1 billion compared to 31 March 2017. This was mainly due to the increase in Gross Loans and Advances, which grew by 10.3% year-on-year from the strength of the Wholesale Banking, Business Banking and Personal Banking Loans. Customer deposits grew by 11.9% to AED 33.3 billion compared to the 31 March 2017 and this was mainly due from the rise of AED 3.1 billion in time deposits.

The Bank’s total capital adequacy ratio as per Basel III stood at 18.64% compared to 20.69% at the end of the previous year. The Common Equity Tier 1 ratio stood at 17.47%. This level of capital provides the Bank with ample room for growth in 2018. The regulatory eligible liquid asset ratio at the end of the quarter was 13.6% compared to 15.0% at the end of 2017. The advances to stable resources ratio and stood comfortably at 88.0% compared to 87.8% at the end of 2017.