The National Bank of Ras Al-Khaimah (P.S.C.) (Rakbank) has reported a net profit of Dhs325.3m for the quarter ended 31st March 2012, reflecting a 11% growth compared to first quarter of 2011 and 9.5% over the fourth quarter of 2011. Commenting on the results, Graham Honeybill, Chief Executive Officer, said, "We are pleased with Rakbank's first quarter results which reflect the continued growth in the Bank's customer base across key business segments. By constantly focusing on delivering the highest levels of customer service and enhancing our portfolio of innovative products and services, we are confident that the bank will continue to achieve positive results." 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 continues to see growth in the small business and personal finance segments. Net interest income at Dhs538.2m grew by 21% compared to 31st March 2011. Gross Loans and advances stood at Dhs19.2bn an increase of 2.7% over 31st December 2011 and an increase of 9.8% compared to 31st March 2011. During the past three months, the bank has taken adequate provisions on its loan portfolio. The total impairment charge for the quarter at Dhs60.5m, is lower compared to last year and the previous quarter. Non interest income at Dhs154.3m was down by 28% compared to 31st March 2011. This is primarily because of the impact of regulatory restrictions imposed since May 2011 on fees and charges. However the Bank has achieved a steady growth in various other fee income lines such as investment income, foreign exchange and others. As a result it achieved a growth of 8.5% compared to the previous quarter. The Bank continues to invest in product development, technology and other delivery channels, in order to remain at the forefront of online and Mobile banking in the UAE. Total assets as at 31st March 2012 were Dhs24.7bn, an increase of Dhs198.4m over 31stDecember 2011 and Dhs2.4bn increase compared to 31st March 2011. During the quarter loans and advances grew by Dhs508m, and investments grew by Dhs442.9m. These have been funded through increase in customer deposits, shareholders equity and reductions in placements with Banks. The Bank's advances to deposits ratio and liquidity ratio stands comfortably at 92.5% and 18.6% respectively. Total shareholder's Equity stood at Dhs5.03bn at the end of March. This will reduce by Dhs415.6m after distribution of cash dividend of 30% for the year 2011 after annual general body approval on 22 April 2012. The Bank's capital adequacy ratio at end of the quarter was 22.5% composed entirely of Tier 1 capital against a current minimum of 12% of Tier 1 capital prescribed by the Central Bank of the UAE. With the Ministry of finance 7 year loan, which is eligible to be treated as tier 2 capital, the overall capital adequacy ratio stands at 25.8%. The Bank' ratings remain unchanged. Press Release
