RakBank profit increases 13pc

Even as most of the public joint stock company (PJSC) banks do not bother to bring out audited semi-annual financial statements, RakBank has once again published its audited first-half results with a 13 per cent jump in net profit to Dh34.9 million.

RakBank, which made news last year by launching credit cards carrying the lowest interest rate and without an annual fee, is the only bank in the UAE which publishes audited financial statements every quarter.

Graham Honeybill, RakBank chief executive, said the bank's board was weighing the option of listing its shares on the stock market. However, he said a time frame could not be given on this.

Total assets of the bank increased 13.2 per cent during the first half of the current year to Dh2.7 billion.

According to the bank, the bulk of increase was on the liability side of the balance sheet in line with its strategy to improve the quality of the balance sheet with a focus on bolstering liquidity.

Earnings per share (EPS) for the six months amounted to Dh1.40 compared with Dh1.23 for the comparable six months in 2001. The personal banking portfolio continued to grow throughout the quarter in line with targeted expansion.

The various new products and services launched have been successful in line with expectation.

The portfolio of loans and advances represents 55 per cent personal banking and 45 per cent corporate. The bank's capital adequacy ratio as of June 30, 2002 was 20 per cent as against 10 per cent minimum recommended by the Central Bank.

The two-digit growth in net profit posted by RakBank reflects, to a large extent, the success of the personal banking initiative, which started in the middle of 2000 and the efforts of corporate bankers in trade finance.

The successful performance has resulted in Capital Intelligence lifting its long-term rating of RakBank to investment grade BBB- from speculative BB+.

As part of the expansion of retail banking, a new branch was opened in Al Manei in April.

The bank has sought the UAE Central Bank's permission to open a branch in the Gold Souq area in Deira. Once this is operational, the total number of branches will reach 14.