The National Bank of Ras Al Khaimah (RAKBank) reported a net profit at Dh527.4 million in the first half of 2022, a 72.4 per cent jump compared to the year-ago period.
For the quarter, the figure stood at Dh307.3 million, up 39.7 per cent compared to Q1, 2022, its highest quarterly net profit since 2015.
Compared to Q1 2022, total income was up 12.1 per cent at Dh815 million, supported by a 4.2 per cent rise in net interest income at Dh563 million, while non-interest income stood at Dh252 million, up 35.1 per cent.
Gross loans and advances clocked in at Dh35.8 million, up 7.8 per cent compared to the year-ago period, and 5.1 per cent year-to-date.
The lender’s balance sheet crossed the Dh60 billion milestone, it said. Total assets increased year to date by Dh4.5 billion, a growth of 7.9 per cent.
Non-performing loans ratio stood at 3.6 per cent and continues to improve, and the bank remains well capitalized with a capital adequacy ratio of 16.8 per cent.
“RAKBank continued the momentum in Q1 to deliver a strong set of financial results in Q2, recording a net profit of Dh527 million for H1. Our return on equity is at 12.7 per cent, and we continue to maintain out net interest margins at 3.9 per cent, one of the highest in the industry,” said RAKBank CEO Raheel Ahmed.
“In line with the buoyancy in the UAE economy, our outlook for H2 2022 remains positive. However, we continue to carefully monitor the rising interest rates, inflation and the current geopolitical tensions and their potential impact on our customers.”
The bank’s digital transactions were up 20 per cent in Q2, compared to the year-ago period, while card spends were up 26 per cent in H1 on an year-on-year basis.
Operating expenditure stood at Dh740.1 million in H1, up 9.9 per cent. Compared to the year-ago period, operating expenses were higher because of an increase of Dh45.6 million in staff costs, Dh20.8 million in card expenses, Dh3.1 million in occupancy costs, and Dh1.5 million in other expenses.
Cost-to-income ratio increased to 48 per cent compared to 41.2 per cent at the end of the same period last year, and 43.2 per cent for FY2021 largely due to the losses in the trading book in the first quarter, the bank said.
Customer deposits increased by 6.8 per cent compared to H1 2021.
