RAKBANK Records AED 1.14 billion in Profit for the First Nine Months of 2013
RAKBANK, the leading retail and small business bank in the UAE, reported a net profit of AED 1.14 billion for the nine months ended 30th September 2013, reflecting a 9.6% increase over the same period last year.
- (1888PressRelease) November 23, 2013 - "RAKBANK's rise in profit for the first nine months of 2013 from funded and non-funded income streams is a result of the Bank's prudent underwriting policies and efficient growth strategy," said Graham Honeybill, RAKBANK Chief Executive Officer.
Net interest income plus net income from Islamic finance grew to AED 1.75 billion during the nine months ended September 30, 2013, a 5.5% increase compared to 30th September 2012. "We are pleased to see the Bank's Islamic Banking division, AMAL, starting to contribute to the Bank's bottom line," said Honeybill. Launched at the beginning of 2013, AMAL recently added Business Finance to its portfolio of products, which include Current and Saving Accounts, Deposits, Personal and Auto finance, Credit and Debit Cards, and Takaful programs.
Non-interest income increased by 20% compared to the same period last year to AED 587.8 million for the nine months of 2013, boosting total operating income to AED 2.33 billion. "The 8.8% growth in total operating income over the same period last year is due to a rise in loans, Islamic financing, and investments, plus strong performances in non-funded income streams including loan origination fees, Bancassurance commission and fees from wealth management products, and income from foreign exchange transactions," explained Honeybill.
Due to the increasing investment in the Bank's branch network and information technology, operating costs increased by 6.8% for the year. During the third quarter, RAKBANK launched its first branch in the emirate of Fujairah to complement its existing branch network in the country's East Coast region, which includes Khorfakkan and a newly refurbished branch in Kalba. The Bank also launched Fast Lane, the first dedicated Islamic Auto Finance Centre in Al Barsha in Dubai to offer AMAL Auto Finance solutions to car buyers in just 60 minutes. Furthermore, RAKBANK added new services on Mobile Banking throughout the year as the Bank continues to add convenience to the customers' banking experience by expanding web-based solutions and prioritizing customer service. Even with the investments in these developments, operating costs remained below the total operating income growth of 8.8%, indicating healthy profitability levels.
The total impairment charge stood at AED 183.1 million for the nine months ended September 30, 2013 compared to AED 157.4 million at the end of the same period last year. As always, the Bank is well provisioned against loan losses with a conservative loan loss coverage ratio of 60% by the end of third quarter of 2013. Nonperforming loans made up only 2.3% of the loan and Islamic Finance portfolio, which is a testament to the bank's high underwriting standards and asset quality.
Total assets increased by AED 1.6 billion over 31st December 2012 and stood at AED 28.9 billion as at 30th September 2013, reflecting the increase in the Bank's investment portfolio which is entirely denominated in AED or USD. The Bank's advances to deposits ratio and liquidity ratio stood comfortably at 92.2% and 19.2% respectively.
The Bank's capital adequacy ratio as per Basel II requirement at September 30, 2013 was 26.6% comprising entirely of Tier 1 capital. As a conservative measure the Bank does not take into account the September interim profits of AED 1.14 billion in arriving at the above capital ratio. The current minimum total capital ratio as prescribed by the Central Bank is 12%.
During the year Moody's, Fitch and Capital Intelligence have affirmed their ratings of RAKBANK and they are as follows:
Rating Agency Deposits Financial Strength Support
Moody's Baa1 / P-2 D+ -
Fitch BBB+ / F2 C 2
Capital Intelligence A-/ A2 BBB+ 2
About RAKBANK
RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country's oldest local financial institutions and today one of its fastest growing and most dynamic banks.
RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels. A prominent player in small to medium enterprise finance and a leading provider of credit cards, the Bank received the title of 'Bank of the Year' in 2012 by Arabian Business Achievement Awards.
For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.
For media queries, kindly contact Lamis Daoud on +9714 291 5064 or via lamis.daoud ( @ ) rakbank dot ae.
###
space
space
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam