RAKBank’s net profit up 50% to Dh758.3 million

Dubai: The National Bank of Ras Al-Khaimah (RAKBank) reported a consolidated net profit of Dh758.3 million for the full-year 2021.

The bank’s total assets amounted to Dh56.3 billion, increasing by 6.7 per cent over 2020. Gross loans and advances closed at Dh34.2 billion, a year-on-year hike of 6.1 per cent.

Customer Deposits grew by 1.9 per cent due to the growth in time deposits by 7.4 per cent compared to the previous year.

The Board of Directors recommended distribution of a cash dividend of 22.5 fils per share for the shareholders’ consideration and approval at the Annual General Meeting.

“RAKBank had a strong finish to 2021, driving Net Profit for the year up to Dh758.3 million. We continue to transform our Bank with a focus on simplification, digitalization and building a culture of excellence,” said RAKBank CEO, Peter England.

Total Income for the financial year ended 31 December 2021 amounted to Dh3.2 billion, which decreased by 9.4 per cent as compared to the same period of the previous year. Net interest income and net income from Islamic Finance stood at Dh2.2 billion for the year 2021, decreasing by 14.1 per cent year-on-year.

Non-interest income increased by Dh23.7 million year-on-year to Dh1.1 billion, mainly due to an increase of Dh54.1 million in net fees and commission income. Operating expenses remained the same year-on-year and the cost to income ratio closed at 43.2 per cent for the year.

“Income growth has been a challenge in 2021 as a result of very little business activity during 2020. However, we saw this gradually turn around as the year progressed and the business momentum in the second half of 2021 reflected positively on the Bank’s performance,” said England.

The Bank’s provision charges for credit loss decreased by Dh586.6 million, which is a 35.3 per cent decrease year-on-year. The non-performing loans and advances to gross loans and advances ratio closed at 4.1 per cent for the 2021 compared to 5.2 per cent in 2020.