The National Bank of Ras Al-Khaimah (RAKBank) reported a 54 per cent drop in third-quarter net profit as total income reduced and impairments rose amid the coronavirus pandemic.
Net profit for the three month period ending September 30 declined to Dh132 million, the lender said in a statement on Thursday. The total income during the period fell 15 per cent to Dh852.5m.
Provisions for impairment rose 21 per cent year-on-year to Dh394.8m, while operating expenditure slid 17 per cent to Dh325.7m.
"Since the gradual reopening of the business, we are seeing signs of improvement in the UAE economy,” RAKBank chief executive Peter England said. “However customer demand for loans has declined considerably as many SMEs and individuals continue to take a cautious stand. This combined with a low-interest rate environment is providing challenges for the bank’s top line income.”
To help cushion some of this impact, RAKBank has taken a proactive approach in cost optimisation including reducing operating expenditure, he added.
The bank’s nine-month net profit fell 48 per cent to Dh438.6m from the year earlier period as total income including net interest income and income from Islamic financing and non-interest income dropped 8 per cent to Dh2.75 billion, the lender said.
Total assets slid 8 per cent to Dh52.3bn at the end of September 2020, compared to Dh57.1bn on December 31 last year.
“Other than the continued precautionary loan loss provisions being taken under IFRS 9, the underlying asset quality of our book remains in decent shape, which of course has been supported by the Central Bank of the UAE’s very proactive approach in providing the Targeted Economic Support Scheme (TESS) for borrowers who are challenged in this time,” Mr England said.
RAKBank expects next few quarters to remain challenging due to a pandemic-induced slowdown.
Globally, banks have reported falling profits and higher provisions in the wake of the pandemic, which disrupted global trade and slowed economic activity as countries implemented lockdowns to contain the coronavirus.
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The specs
Engine: 2.0-litre 4-cyl turbo
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Transmission: 10-speed auto
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COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Wallabies
Updated team: 15-Israel Folau, 14-Dane Haylett-Petty, 13-Reece Hodge, 12-Matt Toomua, 11-Marika Koroibete, 10-Kurtley Beale, 9-Will Genia, 8-Pete Samu, 7-Michael Hooper (captain), 6-Lukhan Tui, 5-Adam Coleman, 4-Rory Arnold, 3-Allan Alaalatoa, 2-Tatafu Polota-Nau, 1-Scott Sio.
Replacements: 16-Folau Faingaa, 17-Tom Robertson, 18-Taniela Tupou, 19-Izack Rodda, 20-Ned Hanigan, 21-Joe Powell, 22-Bernard Foley, 23-Jack Maddocks.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
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The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
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Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
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The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
