ID :
105325
Mon, 02/08/2010 - 17:44
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Shortlink :
https://oananews.org//node/105325
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RAKBANK achieves solid growth in 2009 profits
Ras al Khaimah, Feb 8, 2010 (WAM)- RAKBANK has reported a net profit of Dh726.15 million for 2009 reflecting a 14.2% growth in profits compared to the previous year. The Bank achieved this strong level of growth despite adverse market conditions with the Personal Banking portfolio growing in line with the Bank's targeted expansion.
"The operating environment in 2009 was probably the most difficult the Bank has ever faced" said Graham Honeybill, General Manager. "Liquidity issues which materialised at the end of 2008 continued into the early part of 2009 and there was a significant increase in delinquencies in the retail segment. Despite these considerable challenges the Bank continued to seek good business in line with its strategy and the results reflect the success of this effort.
The Bank's net interest income during the year increased by 37% compared to the previous year to reach Dh1.23 billion. Loans and advances stood at Dh13.43 billion, an increase of 23% over 2008. With the growth in business increases were seen in other operating income which at Dh495 million was up 8% on the previous year.
The Bank's capital adequacy ratio at the end of the year stood at 14.2% composed entirely of Tier 1 capital against the current minimum of 11% Tier 1 capital prescribed by the Central Bank of the UAE. The Bank has converted the liquidity support loans given by the Ministry of Finance in 2008 into 7 year loans. Because of the term of these loans they are eligible for Tier 2 status. If that finance is also taken into account then the Bank's overall capital adequacy ratio rises to 18.8% a figure which will be further enhanced on approval by the shareholders of the proposed dividend.
Total assets were Dh17.1 billion, a 23% increase from year end 2008. Growth in assets was mainly due to increases in loans and advances in the retail segment in line with the Bank's strategy.
RAKBANK's investment portfolio stood at Dh398.33 million at the end of 2009 against Dh645.07 million at the end of last year. The decline was due to the maturity of investments. The Bank has indicated that it intends to hold all bond investments to maturity with no loss expected on any of its investments.
Growth in the Bank's asset book has been supported by a combination of increases in customer deposits and shareholders equity. Customer deposits increased by Dh3.2 billion over the 12 month period due to a combination of term and transaction deposits. During the year a Dh360 million tranche of the medium term note programme matured and the Bank took advantage of favourable prices to redeem a further US$59 million of this programme which at the end of the year stood at US$291 million.
The share capital of the Bank increased to Dh962 million from Dh740 million. Total shareholders equity increased to Dh2797 million at the end of the year.
"The operating environment in 2009 was probably the most difficult the Bank has ever faced" said Graham Honeybill, General Manager. "Liquidity issues which materialised at the end of 2008 continued into the early part of 2009 and there was a significant increase in delinquencies in the retail segment. Despite these considerable challenges the Bank continued to seek good business in line with its strategy and the results reflect the success of this effort.
The Bank's net interest income during the year increased by 37% compared to the previous year to reach Dh1.23 billion. Loans and advances stood at Dh13.43 billion, an increase of 23% over 2008. With the growth in business increases were seen in other operating income which at Dh495 million was up 8% on the previous year.
The Bank's capital adequacy ratio at the end of the year stood at 14.2% composed entirely of Tier 1 capital against the current minimum of 11% Tier 1 capital prescribed by the Central Bank of the UAE. The Bank has converted the liquidity support loans given by the Ministry of Finance in 2008 into 7 year loans. Because of the term of these loans they are eligible for Tier 2 status. If that finance is also taken into account then the Bank's overall capital adequacy ratio rises to 18.8% a figure which will be further enhanced on approval by the shareholders of the proposed dividend.
Total assets were Dh17.1 billion, a 23% increase from year end 2008. Growth in assets was mainly due to increases in loans and advances in the retail segment in line with the Bank's strategy.
RAKBANK's investment portfolio stood at Dh398.33 million at the end of 2009 against Dh645.07 million at the end of last year. The decline was due to the maturity of investments. The Bank has indicated that it intends to hold all bond investments to maturity with no loss expected on any of its investments.
Growth in the Bank's asset book has been supported by a combination of increases in customer deposits and shareholders equity. Customer deposits increased by Dh3.2 billion over the 12 month period due to a combination of term and transaction deposits. During the year a Dh360 million tranche of the medium term note programme matured and the Bank took advantage of favourable prices to redeem a further US$59 million of this programme which at the end of the year stood at US$291 million.
The share capital of the Bank increased to Dh962 million from Dh740 million. Total shareholders equity increased to Dh2797 million at the end of the year.
