Business | Banking
Rakbank profit surges 55% on interest income
Rakbank said its net profit in 2007 grew 55 per cent to Dh401.4 million, boosted by interest income. The net interest income was Dh559.8 million, 47 per cent higher than the previous year.
- Staff Report
- Published: 00:11 January 28, 2008
Dubai: Rakbank said its net profit in 2007 grew 55 per cent to Dh401.4 million, boosted by interest income. The net interest income was Dh559.8 million, 47 per cent higher than the previous year.
Other revenues, consisting of fees, commission and foreign exchange income, stood at Dh343 million. The bank said this was in line with its efforts to increase non-interest revenue. "Our performance during the year has been in line with the strategic initiatives introduced during the past few years," it said in a statement.
Total assets at the end of 2007 were Dh10.97 billion, 24 per cent up from 2006, resulting from a growth in loans and advances to Dh8.17 billion.
The bank's investment portfolio at Dh626 million grew by 26 per cent. It said diversification has resulted in significant improvement in the yield from these assets. The growth in the asset book has been supported by increases in customer deposits, medium term bank borrowings and an increase in shareholders' equity, the bank said.
Customer deposits increased by Dh1.38 billion during 2007 through a combination of increases in transaction accounts and fixed term deposits.
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