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On a year-on-year basis, total operating income declined by Dh74 million to Dh726.9 million. Image Credit: Gulf News Archives

Dubai: Ras Al Khaimah-based lender RAKBank posted a consolidated net profit of Dh220.1 million in Q1 2022, up 93.1 per cent compared to the year-ago period, it announced on Monday.

Total income stood at Dh726.9 million, down 8.3 per cent compared to the fourth quarter of 2021. As on March 31, 2022, total assets stood at Dh58.6 billion, up 10.1 per cent year-on-year and 4.1 per cent year-to-date.

“Our diversification strategy is working well. We have delivered this very significant increase in net profit by improving our return on equity by 460 basis points to 10.5 per cent, improving our returns on assets to 1.6 per cent, whilst maintaining one of the highest impaired loan coverage ratio in the industry at 138 per cent,” CEO Raheel Ahmed said.

“We saw a reduction in our non-interest income driven by lower trading forex and derivatives, and investment incomes. However, we expect that this will not be repeated in subsequent quarters.”

Total assets increased year-to-date by Dh2.3 billion, up 4.1 per cent, because of an increase in gross loans and advances, which increased by Dh1.6 billion.

On a year-on-year basis, total operating income declined by Dh74 million to Dh726.9 million, the bank said.

Customer deposits increased by Dh811 million to Dh38.5 billion compared to December 31, 2021 mainly due to increase of Dh322 million in time deposits and Dh489 million in CASA accounts.

“We have a strong balance sheet momentum across all lines of businesses as is evident from the 9.3 per cent year-on-year growth in gross loans and advances. We have seen over a 20 per cent year-on-year increase in digital engagement with customers and have seen double digit growth in both customer spends and customer payments versus Q1 2021,” Ahmed added.

The bank’s total capital ratio as per Basel III, after the application of the prudential filter, was 16.5 per cent compared to 17 per cent at the end of the previous year. The regulatory eligible liquid asset ratio at the end of the quarter was 11.9 per cent, compared to 11.6 per cent as on December 31, 2021.