(MENAFN Press) The National Bank of Ras Al-Khaimah (P.S.C.) (RAKBANK) has reported a net profit of AED 228.07 million for the quarter ended 31st March 2010, reflecting a 42.2% growth compared to first quarter of 2009 and 16.7% over the fourth quarter of 2009.
Commenting on the results, Mr. Graham Honeybill, General Manager said Although economic recovery is subdued there remain good lending opportunities. The Bank has continued its focus on those products which are core to its business model namely SME, small business financing, mortgages, personal lending and cards, and the success of our marketing efforts are reflected in the first quarters results.
FUNDED INCOME GROWS BY 48%
Net interest income at AED 372.8 million grew by 48% compared to 31st March 2009. The bank has continued to follow a measured approach to expansion, with a focus on maintaining a consistent and sustainable level of growth through a careful lending policy and actively seeks new lending in its chosen fields and has seen growth in the small business and personal finance segments.
Gross Loans and advances stood at AED 14.8 billion an increase of 6.5% over 31st December 2009 and an increase of 25% compared to 31st March 2009.
During the three months the bank has taken adequate provisions on its loan portfolio. Total impairment charge for the quarter at AED 81.3 million was higher by AED 54.3 million compared to the same period last year. We are, however, seeing an improvement in future trends.
FEE, COMMISSION AND OTHER INCOME
Fee, commission and other income at AED 152 million was up by 34% compared to 31st March 2009. The Bank will continue its focus on providing a full range of products to its customers supported by excellent customer service.
The Bank continues to invest in product development, technology and other delivery channels and remains in the forefront of Emiritisation in the banking industry.
ASSETS & LIABILITIES
Total assets as at 31st March 2010 were AED 18.22 billion, an increase of 6.5% over 31stDecember 2009 and a 26% increase compared to 31st March 2009. The main growth in assets was seen in loans and advances.
During the quarter investments totalling AED 56.3 million matured or were disposed of leaving an outstanding portfolio of AED 352 million at the end of March. 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.
The growth in the asset book has been supported by a combination of increases in customer deposits and shareholders equity. Customer deposits were up by AED 1.2 billion from 31st December 2009 from a combination of term and transaction deposits.
The Banks advances to deposits ratio comfortably stood at 91.6% as per the Central Bank of UAE guidelines. The bank has purchased USD 53.5 million of its own bonds from the market due to favourable liquidity conditions.
The Share capital of the bank increased to AED 1,154.44 million from AED 962.03 million after distribution of a 20% stock dividend. Total shareholders Equity stood at AED 2.94 billion at the end of March.