Dubai: Another UAE bank has come up with upbeat first quarter 2021 numbers - RAKBank recorded net profit of Dh113.9 million during the period, and which is a 70.8 per cent gain on the fourth quarter.
Total assets were at Dh53.2 billion, which is an increase of 0.9 per cent year-to-date. It was brought on by "enhancements" in gross loans and advances, lending to other banks and investments. Total income came to Dh800.9 million, down 0.8 per cent from the fourth quarter. But operating expenses were kept under control, dropping by 10.2 per cent when compared to first quarter 2020.
Peter England, CEO, said: "The performance this quarter was solid and driven by a strong momentum from all of our business verticals as this was evident in the year-on-year decrease in provision for credit loss by Dh123.4 million. "RAKBank is on a recovery path post-COVID-19 and will continue to maintain that trajectory while retaining healthy capital levels.
“During the upcoming quarters, the Bank will continue to focus on deepening its customer relationships across business verticals by enhancing digital capabilities and platforms.”
- Net profit improved by Dh47.2 million compared to Q4-2020, an increase of 70.8%. But in a year-on-year comparison, it decreased by 25.8%.
- Net interest income and net income from Shariah-compliant financing was down 23.6% year-on-year and non-interest income reduced by Dh35.9 million to Dh269.2 million.
- Non-performing loans and advances to the gross loans and advances ratio closed the quarter at 5.4%, and the annualised Net Credit Losses to Average Loans and Advances ratio closed at 4.5% compared to 5.3% in Q1-2020.