(MENAFN - Khaleej Times) The National Bank of Ras Al Khaimah, or RAKBank, reported on Wednesday a net profit of Dh906.5 million for the first nine months of 2011, reflecting a 24.2 per cent growth compared to 2010 same period.
In 2010, the bank reported a net profit of Dh729.8 million for the first nine months ended 30thSeptember, reflecting a 37.50 per cent growth compared to the same period in 2009. "In comparison to such high growth, this year's first three quarters' growth rate appears to be a bit slower," a banking analysts said.
The bank said it had 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. "The bank actively seeks new lending in its chosen fields and has seen growth in both small business and personal finance segments," it said in a statement.
Interest income grew by 23.8 per cent to Dh1.5 billion compared to the same three quarters in 2010. Gross Loans and advances stood at Dh18.4 billion, an increase of 13.7 per cent compared the same 2010 period.
During the nine months in 2011, the bank has taken adequate provisions on its loan portfolio. Total impairment charge for the nine months was Dh223 million against the charge of Dh210.3 million made during the same period last year. The increase was mainly due to an additional provision of Dh10 million made during 3rd quarter of 2011.
Graham Honeybill, chief executive officer of RAKBANK, said the ban is confident to continue to achieve positive results as it continues to place great focus on customer service and follow its sound business strategy. The strong financial results reflected the growth in the banks' customer base across major business segments, he pointed out.
Fee and commission income at Dh416.2 million was up by 2.5 per cent compared to the same period last year. While a marginal growth recorded on full year basis, the third-quarter fell by 18 per cent over the same period last year due to new Central Bank of UAE regulation on lending and fees, which came into effect from the month of May.
"The bank will continue to invest in product development, technology and other delivery channels to ensure that we are providing a full range of products and services to our valued customers," said Honeybill.
The bank's total assets rose 7.7 per cent to Dh23 billion. The main growth in assets was seen in loansand advances.
During the nine months, the bank purchased investments worth Dh460.8 million and investments totalling AED 55.1 million matured. Total Investments stood at Dh1.2 billion at the end of September 2011. "The bank intends holding all investments to maturity and does not anticipate any loss on any of its investments," the statement said.
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 Dh1 billion an increase on 6.1 per cent from 31st December 2010 and a 7.9 per cent increase compared to 30th September 2010 from a combination of term and transaction deposits.
The bank's advances to deposits ratio stood at 92.5 per cent as per the Central Bank of UAE guidelines. Liquid asset ratio was comfortable at 16.5 per cent of the total assets. The share capital of the bank increased to Dh1.39 billion from Dh1.15 billion after distribution of 20 per cent stock dividend. Total shareholder's equity stood at Dh4.4 billion at the end of September 2011.