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.
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
COMPANY%20PROFILE
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CHATGPT%20ENTERPRISE%20FEATURES
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Score
Third Test, Day 2
New Zealand 274
Pakistan 139-3 (61 ov)
Pakistan trail by 135 runs with 7 wickets remaining in the innings
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
UAE currency: the story behind the money in your pockets
The%20Roundup
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
