Rakbank reports 65% rise in profit

Dubai: The National Bank of Ras Al Khaimah (Rakbank) yesterday reported a 65 per cent jump in its net profits to Dh480 million for the first nine months of this year despite tight credit conditions in the region.

Net interest income in the period, at Dh645 million, increased by 62 per cent over the same period of 2007.

Fees, commissions and other income at Dh351 million rose 36 per cent.

The bank's total equity increased to Dh1.97 billion while the annualised return on equity increased to 36.13 per cent.

No exposure

"The bank has seen growth in the small business, credit card, mortgage and personal load segment," the bank said in an e-mailed statement.

The bank claims to have no direct or indirect exposure to any sub-prime or similarly structured product.

Gross loans and advances ended the third quarter at Dh10.7 billion, an increase of 26 per cent over December 31, 2007, and an increase of 34 per cent compared to September 2007.

The personal banking portfolio continued to grow during the quarter, in line with the bank's expansion strategy.

Total assets as of September 30 were Dh13.7 billion, a 25 per cent increase over December 31, 2007, when they were Dh10.97 billion.

This resulted mainly from the growth in net loans and advances by Dh2.28 billion.

The growth in the asset book has been supported by a combination of increases in customer deposits and shareholders' equity.

Customer deposits were up by Dh2.1 billion from the end of 2007 from a combination of term and transaction deposits.

"The capital adequacy ratio at the end of current quarter stood at 13.15 per cent," the statement said.