(MENAFN- Khaleej Times) The National Bank of Ras Al Khaimah (RakBank) Group said on Tuesday that a diversification strategy helped it to post a 9.4 per cent jump in consolidated net profit to Dh606.3 million for the first nine months of 2017.
The bank said it generated a third quarter profit of Dh224.8 million, which is "a significant increase of 106.7 per cent" year on year.
Gross loans and advances stood at Dh32.6 billion as of September 30, up by 12.5 per cent compared with the same period last year.
The bank's CEO Peter England said a steady growth of the gross loans and advances led to an increase of total assets by 8.3 per cent to Dh46.1 billion compared to the end of 2016. Customer deposits grew by Dh2.1 billion to Dh31.5 billion, a seven per cent growth compared to the end of 2016.
"RakBank's performance these past nine months is a reflection of the bank's diversification strategy that was initiated a few years ago," said England.
He said all the various business segments of wholesale banking, business banking, personal banking and treasury have made solid progress throughout the year. "While diversifying our loan book and growing into new areas in treasury and wholesale banking particularly, the bank remains very committed to the SME segment despite the challenges faced in this area in the past two years."
The bank reported a 1.2 per cent rise in income for the third quarter compared to the same quarter of the previous year.
The group's wholesale banking, business banking and insurance businesses brought about strong growth in the non-interest income despite the net interest income for nine months declining due to the change made in the bank's business mix of lending.
The bank's capital adequacy ratio is as per the UAE Central Bank. "This level of capital provides the bank with ample room for growth in 2017," the bank said.
The bank said operating expenses increased by 6.6 per cent year on year as a result of investments in new lines of business as well as continued strengthening of compliance and risk, and the cost associated with improvements in debt recovery.
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