RAKBank’s 9-month profit increases 21.9% thanks to improved asset quality – News

Dubai – • Q3 net profit jumped 73.2%; Total deposits increase 8.1% to Dh37b, provisions for the nine months of 2021 are down 31.7%

Total assets stood at 54.5 billion dirhams as of September 30, 2021, increasing 4.1% year-on-year and 3.3% year-to-date. – Photo file

Relative to staff

Posted: Tue, Oct 26, 2021, 7:45 PM

The National Bank of Ras Al Khaimah (RAKBank) said on Tuesday that its nine-month net profit for 2021 rose 21.9% due to the improvement in the quality of the bank’s assets.

In a statement, the bank said its net profits reached Dh 534.7 million in the January-September period, compared to Dh 438.6 million in the same period last year.

Total assets stood at 54.5 billion dirhams as of September 30, 2021, increasing 4.1% year-on-year and 3.3% year-to-date.

Several factors led to the surge in net profit throughout the year, including a reduction in provisions for credit losses as well as an increase in non-interest income to Dh 258.9 million thanks to growth of net profit. fees and commissions of MAD 14 million as well as an increase in other operating income of MAD 17.5 million.

“We have seen a continuous improvement in the quality of RAKBank’s assets, particularly over the past two quarters, which has resulted in a significant improvement in profitability. We have already exceeded our profit figures for the year 2020 in the first three quarters of this year, ”said Peter England, CEO of RAKBank.

He said the improvement in asset quality is due to the change in mix of “our loan portfolio, which we have gradually implemented over the past few years”, and also to the significant improvement in the environment. macroeconomic due to the example of management of the Covid-19 pandemic by the leaders of the United Arab Emirates.

“We see these very positive trends continuing into the fourth quarter, which bodes well for a good start to 2022,” he added.

The bank further said that total income decreased by 11.5% to Dh 2,438.1million, compared to the same period last year, mainly due to a decrease in net interest income. and net income from Islamic financing of MAD 342.5 million due to the declining mix of high yield assets. This was partially offset by the increase in non-interest income of 24.1 million dirhams.

Net interest income and net income from Sharia-compliant Islamic financing weakened by 17.4% year-on-year to Dh 1,621.3 million and non-interest income increased by 3% to Dh 816.8 million, due to the year-on-year increase of Dh 34 million in net fees and commissions, Dh 14 million in investment income and Dh 19.2 million in Other exploitation products. This was partially offset by a decrease in foreign exchange and derivative income of MAD 32 million and a decrease in gross insurance underwriting profit of MAD 11.1 million.

Total assets increased by 1.7 billion dirhams or 3.3 percent year-to-date and 2.2 billion dirhams year-on-year mainly due to the increase in investment securities of 2 , 1 billion dirhams and gross loans and receivables to customers increased by Dh884.4 million.

“RAKBank continues to focus very strongly on its digital transformation and we are increasingly focusing on providing simpler and more convenient banking solutions. We are seeing great popularity with our ‘Skiply’ app, which is now used by over 100,000 families in the UAE and accesses 180 educational institutions that don’t even need to be a RAKBank customer to benefit from. the proposal, ”said Peter England.

“We have also had great success in our partnership with YAP which has developed a unique app-based banking solution that allows new customers to open and operate RAKBank accounts and benefit from a range of products and services. provided by YAP and RAKBank. This focus on digitization, innovation and partnerships will continue to grow and develop strongly in 2022 and beyond, ”he added.

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Michael J. Birnbaum

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