RAK National Bank Posts Profit Growth

Posted on: April 27, 2009

Written by Select Property

Despite current market conditions, The National Bank of Ras Al Khaimah reported that their first-quarter profits advanced 13 per cent. The net profit rose to Dh160.37m (US$43m), or 17 fils a share, from Dh142m in the first quarter of 2008.

Operating income for the bank, also known as RAK Bank, rose 21 per cent to Dh366m.

“Despite Interbank rates easing, the cost of customer deposits has remained high and this has impacted the level of profitability this year, compared to what the bank has seen in previous years,” said Graham Honeybill, the bank’s general manager, in a statement posted on the Abu Dhabi bourse website.

While the bank’s capital adequacy ratio at the end of the quarter stood at 16.45 per cent, well above the minimum of 10 per cent as set by the Central Bank, its investment portfolio fell to Dh520m from Dh645m at the end of last year. The bank said the decline was “due to a maturity of investments”.