Rakbank profit up 26pct in H1 2011

Rakbank said its net profit for the six months which ended 30th June 2011 reflected a 25.8 per cent growth compared to the same period in 2010, reaching Dh589.1 million.

The bank’s net interest income grew by 21.7 per cent compared to 30thJune 2010 to reach Dh933.3m, it said in a statement.

Gross loans and advances stood at Dh17.9 billion, up by 6.7pct over 31stDecember 2010 and an increase of 15.7 per cent compared to 30thJune 2010.

Rakbank’s Chief Executive Officer Graham Honeybill said the result reflects the growth in the bank’s customer base across a wide range of personal and small business segments, a key competitive product offering of the bank as well as emphasis on customer service.

The bank reported an increase of 12.6 per cent in the fee and commission income at Dh307.9m compared to its performance in the same period of 2010, a reflection of increased volumes of business being processed during the six months.

"The bank remains vigilant and well positioned to benefit from changing trends and to take advantage of business opportunities,i ncluding online ventures, as and when they arise,” Honeybill said in the statement.

The bank said it has taken adequate provisions on its loan portfolio with total impairment charge for the half year Dh148.3m, which was in line with the charge of Dh148.8m made during the same period last year.

Total assets as at 30th June 2011 were Dh22.6 billion, an increase of 5.8 per cent over 31st December 2010 and a 14.1 per cent increase compared to 30th June 2010. The increase is attributed to higher loans and advances and supported by a combination of increases in customer deposits and shareholders’ equity.