Dubai: National Bank of Ras Al Khaimah (RAKBank) Group saw its consolidated net profit for the nine months ended September 30, 2017 grow 9.4 per cent to Dh606.3 million.

For the third quarter of 2017, the bank reported a net profit of Dh224.8 million, up 106.7 per cent year-on-year.

Gross loans and advances stood at Dh32.6 billion as of September 30, 2017, up by 12.5 per cent compared with the same period last year.

Total assets were up by 8.3 per cent to Dh46.1 billion, compared to the 2016 year-end.

Additionally, customer deposits grew by Dh2.1 billion to Dh31.5 billion, a 7 per cent growth compared to the end of 2016.

“RAKBank’s performance these past nine months is a reflection of the bank’s diversification strategy that was initiated a few years ago,” said RAKBank CEO, Peter England.

“All the various business segments of wholesale banking, business banking, personal banking and treasury have made solid progress throughout the year. Whilst diversifying our loan book and growing into new areas in treasury and wholesale banking particularly, the bank remains very committed to the SME segment despite the challenges faced in this area in the past two years,”

The bank’s total income increased by 1.2 per cent in the third quarter, compared to the same quarter last year.

The group’s wholesale banking, business banking and insurance businesses brought about strong growth in the non-interest income despite the net interest income for nine months declining due to the changes made in the bank’s business mix of lending.

Operating expenses increased by 6.6 per cent year-on-year as a result of investments in new lines of business as well as continued strengthening of compliance and risk, and the cost associated with improvements in debt recovery. As a result of these investments, the cost-to-income ratio for the period increased marginally to 37.7 per cent.

Impairments continued their downward trajectory from its peak in the third quarter of 2016, declining by 27.8 per cent in the third quarter compared with same period last year, and down by 12 per cent in the first nine months year-on-year.

The bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 20.4 per cent at the end of September 2017. The advances-to-stable resources ratio stood at a comfortable 88.8 per cent, compared to 85.5 per cent at the end of 2016.