GulfBase Live Support
The National Bank of Ras Al Khaimah on Wednesday reported a slight drop in its second-quarter net profit as non-interest income dropped and operating expenses climbed amid challenging market conditions.
Net profit slipped to Dh226.6 million in the three months ending June 30 from Dh226.7m reported in the corresponding period of the 2017, the lender said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Total income declined 2.7 per cent year-on-year to Dh940m in the second quarter.
The flat quarterly net profit still beat Egyptian investment bank EFG-Hermes' forecast, which estimated that RAKBank would make a profit of Dh220m for the period.
The bank's financial performance reflects the ongoing shift of "business strategy to a more diversified balance sheet," Peter England, chief executive of RakBank said. "Funding cost has increased more than expected as a result of increased competition for deposits in the market.”
Going forward, the lender's executive management and board of directors will focus on rationalising operations and focusing on "cost optimisation to improve overall efficiency, which will show significant results in 2019," the bank said in a separate regulatory filing. Banks in the UAE and broader Arabian Gulf markets are expected to improve profitability amid a pick-up in economic activity on the back of a recovery in oil prices.
EFG-Hermes forecast aggregate second-quarter earnings growth of 7 per cent year-on-year for Middle East and North Africa banks in a report released earlier this month. It predicted an 8 per cent year-on-year rise in profit for UAE lenders in the second quarter.
Impairments charges to cover bad loans grew 13.4 per cent year-on-year to Dh324.6m in the second quarter, RAKbank said.
The lender said non-interest income dropped 13.4 per cent to Dh254.2m during the second quarter, while operating expenses grew 6.7 per cent to Dh389.4m mainly on the back of an increase in employment costs during the period.
The bank, which received stable outlook from credit rating agency Fitch earlier this month, said its net fee and commission income came in at Dh686.3m, up two per cent from Dh672.8m a year ago.
"Looking ahead, RAKBank's new three-year strategy will focus on building the performance of improved business units and continuing to innovate through the introduction of a more diverse range of products, services, and initiatives,” Mr England, said.
The National Bank of Ras Al Khaimah (RakBank) and FC Barcelona have announced a strategic regional partnership for three years extendable by another two years whereby RakBank has become the official
RakBank, a leading bank in the UAE, has partnered with Xpress Money, a major money transfer brand, to offer convenient money transfer services to RakBank customers through the bank’s remittance servi
Rakbank and cloud computing firm Sage on Tuesday announced a partnership that will see Sage’s VAT-accredited accounting software offered to the bank’s business customers across industries.
Bank Nizwa, represented by two of its Board Members, Sami Al Dhugishi and Ishaq Al Maouli along with Chief Executive Officer, Khalid Al Kayed, participated in the 2nd Islamic Financial Services Board
Times of Oman
The sharp decline of the Turkish lira in recent weeks has triggered speculation in banking circles that Emirates NBD stands a chance to renegotiate its deal to acquire Denizbank as the valuation has
Abu Dhabi-listed Eshraq Properties reported a first-half net profit of Dh14.8 million, compared to a loss of Dh0.32 million in the first half of 2017. The property firm said in a press statement that
Damac Properties has signed a landmark agreement with Radisson Hotel Group (RHG) to develop and launch the ‘Radisson Hotel, Dubai Damac Hills’, its first, newly launched Radisson-branded property wor
The Gulf Today
Abu Dhabi National Oil Company for Distribution (Adnoc Distribution) has reported that net profit for the six months ended June 30, 2018, increased by 18 per cent to Dh1.124 billion ($306 million) co