Business | Banking

Rakbank reports 10.3% increase in first-half profit

The National Bank of Ras Al Khaimah (Rakbank) on Sunday reported that first half profits grew 10.3 per cent to Dh343.8 million over the same period last year.

  • By Ahmed A. Namatalla, Staff Reporter
  • Published: 22:41 July 26, 2009
  • Gulf News

  • Image Credit: Gulf News archive
  • Analysts attribute Rakbank's success to conservative lending and investment practices, focus on retail banking and customer service and lack of exposure to bad debt.

Abu Dhabi: The National Bank of Ras Al Khaimah (Rakbank) on Sunday reported that first half profits grew 10.3 per cent to Dh343.8 million over the same period last year.

Registering one of the strongest performances by a UAE bank this quarter, Rakbank's second quarter profits of Dh183.4 million surpassed the previous quarter by 14.4 per cent.

First half interest income contributed significantly to the bank's profit growth, recording a 32 per cent increase over last year to Dh530.8 million.

Analysts cite the bank's conservative lending and investment practices, focus on retail banking and customer service and lack of exposure to non-performing debt as reasons behind its success.

In a statement, Rakbank confirmed it has no direct or indirect exposure to Saudi Arabia's struggling Sa'ad Group and Al Gosaibi Group, estimated recently by a Standard and Poor's report to owe 30 Gulf Cooperation Council banks $9.6 billion (Dh35.2 billion).

Still, Rakbank reported Dh77.1 million in provisions against bad loans, almost three times the amount set aside in the first half of 2008.

Last week, Abu Dhabi Commercial Bank (ADCB) reported setting aside Dh890 million, or 57.5 per cent of its reported Dh1.55 billion in first half profits, to cover possible losses in its investment and loans portfolios.

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