RAKBank's net profit for the three months to the end of March climbed by 105 per cent on an annual basis to Dh450 million. Photo RAKBank
RAKBank's net profit for the three months to the end of March climbed by 105 per cent on an annual basis to Dh450 million. Photo RAKBank
RAKBank's net profit for the three months to the end of March climbed by 105 per cent on an annual basis to Dh450 million. Photo RAKBank
RAKBank's net profit for the three months to the end of March climbed by 105 per cent on an annual basis to Dh450 million. Photo RAKBank

RAKBank's first-quarter net profit more than doubles on income boost


Sarmad Khan
  • English
  • Arabic

National Bank of Ras Al Khaimah more than doubled its first-quarter net profit to a record, driven by a sharp rise in both interest and non-interest income amid continued economic momentum in the UAE.

Net profit for the three months to the end of March climbed 105 per cent on an annual basis to Dh450 million ($122.6 million), RAKBank said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.

The bank's total income in the first three months jumped nearly 48 per cent to Dh1.07 billion.

The quarterly income performance was supported by a 46 per cent annual surge in net interest income to Dh788.8 million. The lender’s net interest margins increased to 4.9 per cent at the end of March, up from 3.8 per cent reported in the first quarter of last year.

The bank’s non-interest income rose more than 52 per cent year on year to Dh284.4 million, driven by higher forex and derivative proceeds.

“Delivering on our multi-year strategy, we accelerated our growth and achieved a record net profit … I am very pleased with the progress we are making in laying the foundation for a sustainable growth,” Raheel Ahmed, chief executive of RAKBank, said.

“In diversifying our income sources, we achieved robust growth on both sides of the balance sheet, across interest and fee incomes, and in all our [business] segments.”

Most central banks across the globe are continuing to follow the US Federal Reserve's lead on increasing benchmark policy rates.

The Fed is trying to bring inflation down towards its target range of 2 per cent and restore price stability amid market turmoil fuelled by recent bank failures in the world's largest economy.

In March, the Fed raised its benchmark rates by 25 basis points, which was the ninth rate increase by the US central bank since it started monetary tightening last March.

Lenders in the GCC, where most central banks peg their currency to the US dollar, are benefiting from rising interest rates amid continued economic recovery and relatively lower inflation in the region.

Profitability of the four largest banks in the UAE will continue to grow this year amid rising interest rates and continuing economic momentum, Moody's Investors Service said in March.

After growing 7.6 per cent in 2022, the most in 11 years, the UAE economy is expected to expand 3.9 per cent this year and 4.3 per cent in 2024, the UAE Central Bank said last month.

Non-oil gross domestic product and oil output were estimated to have grown 6.6 per cent and 10.1 per cent, respectively, last year.

Raheel Ahmed, chief executive of RAKBank. Photo: RAKBank
Raheel Ahmed, chief executive of RAKBank. Photo: RAKBank

Non-oil GDP is expected to accelerate by 4.2 per cent this year and 4.6 per cent in 2024, the Central Bank said. Oil GDP is forecast to grow 3 per cent in 2023 and 3.5 per cent next year.

RAKBank said its gross loans and advances climbed by 1.4 per cent to Dh38.7 billion, compared to their end-2022 level, on the back of a “changing balance sheet mix in line with the strategic direction of the bank”.

Its customer deposits reached 46.4 billion, an increase of 3.3 per cent from December 2022.

RAKBank's cost of risk at the end of the first quarter “remained low due to the bank’s diverse business mix and resilient UAE economic environment”, leading to a 30.9 per cent quarter on quarter reduction in impairments for bad loans.

However, impaired loan provisions increased to almost Dh234 million at the end of March, up from Dh134.5 million recorded at the end of the first quarter of last year.

RAKBank is investing up to Dh600 million until 2026 as part of a four-year strategy to increase the digitalisation of its services and develop new business lines as it looks to diversify its revenue base and boost growth.

The bank’s growth strategy is focused on making RAKBank a “more holistic partner” for its clients, giving them more than just lending and deposit facilities, Mr Ahmed told The National in February.

Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania ​​​​​​​
Verdict: 4 Stars

MATCH INFO

Asian Champions League, last 16, first leg:

Al Ain 2 Al Duhail 4

Second leg:

Tuesday, Abdullah bin Khalifa Stadium, Doha. Kick off 7.30pm

Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Recipe

Garlicky shrimp in olive oil
Gambas Al Ajillo

Preparation time: 5 to 10 minutes

Cooking time: 5 minutes

Serves 4

Ingredients

180ml extra virgin olive oil; 4 to 5 large cloves of garlic, minced or pureed (or 3 to 4 garlic scapes, roughly chopped); 1 or 2 small hot red chillies, dried (or ¼ teaspoon dried red chilli flakes); 400g raw prawns, deveined, heads removed and tails left intact; a generous splash of sweet chilli vinegar; sea salt flakes for seasoning; a small handful of fresh flat-leaf parsley, roughly chopped

Method

Heat the oil in a terracotta dish or frying pan. Once the oil is sizzling hot, add the garlic and chilli, stirring continuously for about 10 seconds until golden and aromatic.

Add a splash of sweet chilli vinegar and as it vigorously simmers, releasing perfumed aromas, add the prawns and cook, stirring a few times.

Once the prawns turn pink, after 1 or 2 minutes of cooking,  remove from the heat and season with sea salt flakes.

Once the prawns are cool enough to eat, scatter with parsley and serve with small forks or toothpicks as the perfect sharing starter. Finish off with crusty bread to soak up all that flavour-infused olive oil.

 

BABYLON
%3Cp%3EDirector%3A%20Damien%20Chazelle%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Brad%20Pitt%2C%20Margot%20Robbie%2C%20Jean%20Smart%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
PREMIER LEAGUE FIXTURES

Saturday (UAE kick-off times)

Watford v Leicester City (3.30pm)

Brighton v Arsenal (6pm)

West Ham v Wolves (8.30pm)

Bournemouth v Crystal Palace (10.45pm)

Sunday

Newcastle United v Sheffield United (5pm)

Aston Villa v Chelsea (7.15pm)

Everton v Liverpool (10pm)

Monday

Manchester City v Burnley (11pm)

25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A
Updated: April 27, 2023, 12:39 PM`