RAKBank second quarter profits up on lower impairments
Money set aside for bad debt predicted to fall further
The National Bank of Ras Al Khaimah or RAKBank said on Monday its second-quarter net profit surged 14.7 per cent, as money set aside to cover bad debt fell.
Net profit attributable to equity holders in the three months ended June reached Dh224.5 million, compared with Dh195.7m in a year-earlier period. Total income fell 1.2 per cent to Dh966.4m compared with Dh977.7m in a year-earlier period.
Provisions for impairment fell 14.2 per cent to Dh374.9m from Dh437.1m.
“Total income for the second quarter of 2017 increased by 2.1 per cent over the previous quarter and impairments continue on a downward trend after peaking in Q3 2016,” said Peter England, RAKBank’s chief executive. “Impairments are still relatively high reflecting the nature of our legacy book, however we expect continued improvements in this area as the year progresses.”
Non-interest income rose 8.6 per cent to Dh293.6m from Dh270.3m, thanks to higher net fees, commission income, insurance underwriting, and forex and derivatives revenue, the bank said.
The bank’s total assets increased by 3.4 per cent to Dh44 billion compared to the end of last year thanks to 6.4 per cent rise in Gross Loans & Advances. Customer deposits grew by Dh1.2bn to Dh30.6bn, a 3.9 per cent increase compared to the end of last year.
Updated: July 24, 2017 12:04 PM