The National Bank of Ras Al Khaimah (RAKBANK) recorded a profit of AED 284.5 million, a 19 per cent year-on-year increase in Q3 2019 on the back of an increase in operating income and a decrease in credit loss provisions.
Peter England, the CEO of RAKBANK, said, “We achieved another very good result with total income for the third quarter of 2019, exceeding AED 1 billion and net profit reaching AED 284 million, which was an 18.5 per cent increase over the same period of last year.”
RAKBANK stated that it recorded total operating income of AED 1 billion in Q3 2019, a three per cent year-on-year increase, driven by an increase in non-interest income to AED 292.5 million from AED 262.9m the same period under review last year.
Additionally, the bank reported an AED 284.6 million increase in net profit attributable to shareholders in Q3 2019.
Gross loans and advances increased by 3.4 per cent year-on-year, which was mainly driven by increases in it's wholesale banking and financial institutions segments, said England.
The bank’s total income stood at AED 3.0 billion in Q3 2019, a 5.8 per cent increase compared to the same period last year. Provision for credit loss in Q3 2019 dropped to AED 325.4 million, from AED 361.1 million recorded the same period a year ago.
Net interest income and net income from Islamic finance stood at AED 2.1 billion in Q3 2019, a 1.2 per cent year-on-year increase compared to the same period last year. Similarly, non-Interest income improved by AED 138 million year-on-year to AED 907 million, due to an increase of AED 74 million in forex & derivative income as well as AED 54 million in fee & commission income.
“Diversification of our balance sheet while retaining a firm commitment to the SME sector has been at the heart of our strategy over the last five years and the results of this continues to bear fruit in terms of sustained income growth and lower provisions,” said England.
RAKBANK’s total capital adequacy ratio was 17.5 per cent in Q3 2019 in accordance with Central Bank of the UAE regulations. Additionally, the common equity Tier 1 ratio of the bank stood at 16.4 per cent.
The bank recorded a 12.2 per cent regulatory eligible liquid asset ratio well above the minimum requirement of 10 per cent.