RAKBank second quarter profits jump 31%

UAE lender National Bank of Ras al-Khaimah (RAKBank) reported a second quarter net profit increase of 31 per cent on Tuesday as interest and fee income rose, outweighing a near doubling of bad loan charges.

Abu Dhabi-listed RAKBank made a net profit of Dh240.2 million in the three months to June 30, up from Dh183.4 million in the year earlier period.

"The bank's second quarter result reflects the growth in the bank's customer base across a wide range of personal and small business segments...", said general manager Graham Honeybill in the statement.

Net provisions for bad loans continued to weigh on the bank, jumping 92.8 per cent in the first half of the year to Dh148.8 million, from Dh77.2 million in the same period in 2009.

The lender, controlled by the ruler of emirate Ras al-Khaimah, reported a six month net profit of Dh468.3 million, up 36.2 per cent from the same period in 2009.

First half net income interest grew by 42 per cent to Dh767 million, while fees, commission and other income increased 23.6 per cent.

In May, the board of directors approved an increase in limit of the bank's bond issuance programme to $1 billion from $500 million.

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