Dubai:RAKBank, reported a net profit of Dh1.04 billion for the nine months ended September 30, 2012, recording 14.5 per cent annual growth compared to the same period in 2011 and 7.6 per cent quarter growth.

Net interest income for the nine months increased by 14 per cent to Dh1.7 billion compared to the same period last year, and net loans and advances grew by 9.36 per cent . With deposits up by 12.5 per cent at Dh2.29 billion, the Bank was able to maintain healthy liquidity and loan to deposit ratios at 19.4 per cent and 91.9 per cent respectively.

“The positive results reported for the nine months reflect the continued growth in our customer base as a direct result of the bank’s full range of evolutionary products and services supported by superior customer service,” said Graham Honeybill, RAKBank’s Chief Executive Officer.

The bank recently replaced its core banking system. “The technology upgrade helps support the Bank’s portfolio of e-solutions for customers and demonstrates the bank’s commitment to achieving excellence in customer service, which is the driving force behind RAKBank’s solid reputation and high levels of customer loyalty,” said Honeybill.

Due to the continuing investment in technology as well as branch and ATM networks, operating costs climbed by 13.7 per cent compared to the same period last year. The total impairment charge for the nine months stood at Dh157.4 million against Dh223 million last year, and the total provisions held are considered conservatively adequate for the current loan portfolio.

Gross loans and advances increased by 9.36 per cent to Dh20.4 billion during the nine months. Non-interest income at Dh489.7 million was down by 4 per cent compared to the same period last year primarily because of the impact of regulatory restrictions on fees and charges imposed by the Central Bank since May 2011. However, RAKBank’s growth in investment income, foreign exchange, and other fee lines achieved a healthy growth of 18.9 per cent in fee income compared to the third quarter of 2011.

“As a leading retail and small business bank, we are constantly looking for new ways to boost the Bank’s capability to further grow our customer base and fee income. The introduction of Islamic Banking products and services planned for early 2013 will aim to capture a wider market by expanding the suite of RAKBank offerings,” added Honeybill.

Total assets increased by 8.1 per cent to reach Dh26.49 billion by the end of the nine months with Moody’s Investors Service affirming RAKBank’s stable outlook in September 2012. RAKBank used its internal resources to fully settle the balance of subordinated debt of Dh684.47 million received from Ministry of Finance in December 2009.