RAKBANK, the trading name of the National Bank of Ras Al-Khaimah, is a public joint stock company, headquartered in the emirate of Ras Al-Khaimah, in the UAE. The Head Office of the bank is situated in RAKBANK Building, Oman Street, Al Nakheel, Ras Al-Khaimah. The bank is 52.75% owned by the Government of Ras Al-Khaimah.
Website RAKBANK www.rakbank.ae
RAKBANK Reports 10% Growth in Profit for First Half of the Year (2009)
RAKBANK has reported a net profit of AED 343.82 million for the six month period ended 30th June 2009, reflecting a 10.33% growth in profits compared to the same period last year. Second quarter profit grew by 14.38% over the first quarter of 2009. The bank achieved this strong level of growth notwithstanding adverse market conditions, with the Personal Banking portfolio growing in line with the bank’s targeted expansion.
The bank’s net interest income during the first half of the year grew by 32%, compared to the same period last year, to reach AED 530.76 million. Gross Loans and advances stood at AED 12.5 billion, a 11% increase over the six month period and a 26% increase from last year’s first half figures. The bank has taken adequate provisions on its loan portfolio and has no direct or indirect exposure to Ahmad Hamad Al Gosaibi & Brothers and Saad Group. Fee, commission and other income at AED 254 million was up by 5% from the same period last year.
“RAKBANK continues to follow a measured approach to expansion, with a focus on maintaining a consistent and sustainable level of growth through a careful lending and investment policy,” said Graham Honeybill, General Manager.
“Even though we have been operating in an environment that has presented considerable challenges to our business and customers, we continue to achieve positive results due to the business model that we have followed both in good times and in difficult conditions,” he added. “The bank has registered growth across its business units of personal loans, mortgages, credit cards and small business loans, as a result of maintaining a consistent level of lending activity.”
The capital adequacy ratio as at 30th June 2009 stood at 15.81%, against a minimum of 11% mandated by the Central Bank. Deposits received from the Ministry of Finance are not included in this calculation as legal formalities have not yet been completed. Inclusion would boost this ratio to 21.05%.
Total assets were AED 15.38 billion, an 11% increase from year-end 2008 and 18% higher than the same period last year. The main growth in assets was seen in loans and advances.
During the first half, investments totalling AED 209 million matured leaving an outstanding portfolio of AED 542.31 million at the end of June. 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 name of domestic institutions.
Growth in the bank’s asset book has been supported by a combination of increases in customer deposits and shareholders’ equity. Customer deposits were up by AED 1.64 billion over the six month period due to a combination of term and transaction deposits.
During the same period, USD 100 Million tranche of the medium term notes programme matured and was repaid.
The Share capital of the bank increased to AED 962.03 million from AED 740.02 Million after distribution of a 30% stock dividend. Total shareholder’s equity stood at AED 2.41 billion at the end of June 2009.
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About RAKBANK
RAKBANK, the National Bank of Ras Al-Khaimah, is a leading retail bank in the UAE, serving 330,000 customers. Founded in 1976, the bank is one of the UAE’s oldest local financial institutions and today one of its fastest growing and most dynamic banks, with assets worth Dh15.38billion.
The bank offers a wide range of personal banking services through its 27 branches and telephone and online banking channels. It is a leading provider of credit cards and was first to introduce the concept of ‘Free for Life’ cards, a facility now adopted by many industry players. It is also a significant player in the mortgage finance and small to medium enterprise business sectors.
Customer service excellence is a cornerstone of the bank’s success, with the bank having been voted in 2008 for four years running as #1 Bank in Customer Service in the UAE Annual Bank Benchmarking Study.
For more information, visit www.rakbank.ae
This commercial was shot for RAKBANK Credit Cards for The UAE Market
Director: Manav Menon
Production House: Footcandles Film Pvt Ltd
Agency: Promoseven, Dubai
Post Production: Infinite Frameworks, Singapore
Ras Al Khaimah www.rasalkhaimah.eu
