Rakbank net profit hits AED1,095.3m in 2019

RAS AL KHAIMAH / WAM

The National Bank of Ras Al Khaimah (Rakbank), announced a consolidated net profit of AED1,095.3 million for the full-year of 2019, increasing by AED177.7 million over the previous year.
According to a press release issued by the Bank on Wednesday, the growth in the bank’s net profit was driven by the improved net interest income, an increase in the net income from Islamic financing and the non-interest income as well as a reduction in the provisions for credit loss for the year.
As at December 31, 2019, the total assets stood at AED57.1 billion, a rise of 8.4% compared to December 31, 2018.
The Board of Directors recommended a distribution of cash dividend of 30 fils per share for the shareholders’ consideration and approval at the Annual General Meeting.
Commenting on the announcement, Rakbank CEO Peter England said, “2019 represented a milestone for Rakbank with total income reaching close to AED4 billion for the first time in the Bank’s history. We also saw a significant boost in our fee income line to reach an all-time high of AED1.18 billion.”
The results of our significant shift in strategy that we set out on in 2015 to diversify the Bank’s earnings base continue to deliver market leading results.
“The growth in Rakbank’s net profit for 2019 was supported by a year-on-year drop in the Bank’s provision for credit loss by AED107.9 million which again demonstrates the effectiveness of our diversification strategy and continual focus on asset quality. Gross Loans and Advances grew year-on-year and Customer Deposits climbed to a record high, increasing by 4.1% and 7.9% respectively compared to the previous year.
“Loan growth was largely driven by our Wholesale Banking and Financial Institutions businesses whilst the Bank retained its market leading position in the small business sector and continued to roll out innovative offerings in the Personal Banking space.” Rakbank’s Chairman Mohamed Omran Alshamsi commented, “In a steadily growing economy marked by digital advancements and product launches, the Bank produced yet another strong fourth quarter and full year, allowing us to increase investments in our customer value proposition, the community, and employees, while keeping a close eye on expenses. Rakbank’s core business is resilient and our diversified portfolio resulted in an increase in the Bank’s assets and the growing customer deposits, which in turn will allow us to continuously deliver robust and sustainable results for the future.”