RAKBANK reports AED270.2 million Q1 net profit

RAS AL KHAIMAH, The National Bank of Ras Al Khaimah (RAKBANK) has announced consolidated net profit of AED270.2 million for Q1 2019, an increase of 31.7 percent on Q1 2018 and by 10 percent on the previous quarter.

Total Income of AED 1.0 billion increased by 8.5 percent YoY and by 0.9 percent on Q4 2018. As at 31st March 2019, total Assets stood at AED53.5 billion, up 9 percent YoY and by 1.6 percent year-to-date.

Commenting on the results, Peter England, CEO of RAKBANK, said, “Total income for the first quarter 2019 exceeded AED1 billion, which is only the second time in RAKBANK’s history that we have achieved such a result. This is a clear outcome of the Bank’s diversification strategy which commenced 4 years ago and is now delivering solid results.

“Non- interest income particularly was very strong for the first quarter rising to AED317 million which is an all-time high, and was achieved by impressive results across all business lines especially our Treasury and Wholesale Banking / Financial Institutions units. Our diversification strategy has also helped our provision line to graduate down by 5 percent YoY whilst retaining a coverage ratio in excess of 130 percent. Cost to income remained stable at 38.4 percent despite being impacted by an annual true-up of VAT and some other timing differences.”

On a year-on-year basis, the total Operating Income improved by AED78.4 million to AED1.0 billion. Total Operating Income was up by AED8.7 million compared to Q4 2018, mainly due to an increase in non-interest income by AED27.7 million, which was partly offset by an AED19.0 million decrease in net interest income and income from Islamic products, net of distribution to depositors, which totaled AED683.8 million.

Interest income from conventional loans and investments increased by 9.3 percent year-on-year, while interest costs on conventional deposits and borrowings increased by 41.3 percent. Net income from Sharia-compliant Islamic financing decreased by 4.0 percent and non-interest income improved by AED 65.5 million to AED 317.2 million, mainly due to an increase of AED 32.7 million in net fees and commission income and AED 31.6 million in forex and derivative income.

Source: Emirates News Agency