Dubai: The National Bank of Ras Al Khaimah (RAKBank) Group on Tuesday reported a consolidated net profit of Dh671.8 million for the first nine months of 2018, up 10.8 per cent compared to the same period last year.

For the third quarter of 2018 the bank generated a profit of Dh240.1 million, up 6.8 per cent year on year and a 6 per cent increase compared with the second quarter of 2018.

“The ample liquidity and rise in customer deposits have reflected in the bank’s solid progress in the wholesale banking, business banking, personal banking, and Treasury,” said Peter England, RAKBank CEO.

Total assets were up 12.4 per cent to Dh51.8 billion compared to the end of the third quarter 2017. Gross loans and advances and investments increased by Dh2.5 billion and Dh2.4 billion respectively compared to September 30, 2017.

Growth of corporate loans from wholesale banking segment contributed to the increase of the gross loans and advances by 7.7 per cent year-on-year. Likewise, Customer deposits grew by Dh3.2 billion to Dh34.6 billion, a 10.1 per cent growth compared to September 2017.

Operating income was Dh2.8 billion for the nine months ended September 30, 2018. Operating income increased by 1.2 per cent for third quarter of 2018 compared to same period last year.

The Group’s net interest income for nine months increased by 1.5 per cent to Dh2.1 billion while the non-interest income declined by 8.2 per cent due to lower investment income because of decreases in volume of sale of investments during the period as a result of challenges in the bond market.

“The trends for the nine months of 2018 are showing positive signs, and the impairments are on a downward trend. The bank remains very committed to its diversification strategy which is now delivering growth in net interest income whilst lowering the bank’s risk profile,” said England.

Operating expenses increased 2.9 per cent year-on-year and the cost to income ratio for nine months closed at 39.3 per cent. Impairments were lower by Dh135.1 million for the nine months ended September 2018 compared to the same period of 2017.

The bank’s Basel III capital adequacy ratio stood at 18.5 per cent at the end of September 2018. This level of capital provides the Bank with ample room for growth in 2018.

The regulatory eligible liquid asset ratio at the end of September 2018 was 13.7 per cent compared to 15 per cent at the end of 2017. The advances to stable resources ratio stood comfortably at 87.7 per cent compared to 87.8 per cent at the end of 2017.