Ras al-Khaimah: «The Gulf»
The National Bank of Ras Al Khaimah “RAK Bank” announced that it recorded a consolidated net profit of 758.3 million dirhams for the year 2021, an increase of 252.9 million dirhams compared to the previous year. The bank’s total assets amounted to 56.3 billion dirhams, an increase of 6.7% over the year 2020. The total loans and advances reached 34.2 billion dirhams on an annual basis, registering an increase of 6.1%.
On the other hand, customer deposits recorded an increase of 1.9%, and this growth is due to an increase of 7.4% in time deposits compared to the previous year, reaching 660.1 million dirhams. The return on average assets reached 1.4%, compared to 0.9% in the previous year, while the return on average equity reached 9.5%, compared to 6.5% in 2020.
The bank’s board of directors proposed distributing cash dividends of 22.5 fils per share, provided that this proposal will be discussed and approved by the shareholders during the annual general meeting.
quick recovery
Mohammed Omran Al Shamsi, Chairman of the Board of Directors of the National Bank of Ras Al Khaimah, said: “The financial performance of the National Bank of Ras Al Khaimah last year achieved tangible results despite the operating environment in 2021. Reviewing the first half of the year, the UAE economy was in the process of recovering from the effects of Covid- 19. But the second half witnessed a complete transformation, which also applied to the National Bank of Ras Al Khaimah. With the UAE economy continuing its rapid recovery, RAKBANK has shown a similar recovery in terms of resilience backed by the bank’s diversification strategy. I would like to announce that effective February 2, 2022, Rachel Ahmed will formally assume his responsibilities as CEO of Ras Al Khaimah National Bank; As the specified pick-up and delivery period has now been completed.”
strong recovery
Peter England, CEO of RAKBANK, said: “RAK Bank completed the year 2021 on a strong note with a net profit of AED 758.3 million for the year. We continue the process of transforming our bank with a focus on ease of use, digitization and building a culture of excellence. Income growth was a challenge in 2021 as a result of less business activity during 2020. But we started to see a gradual shift as the year went on; The business momentum reflected positively on the bank’s performance in the second half of 2021.”
Highlights
* Net profit increased by 50% compared to the previous year; Where it amounted to 758.3 million dirhams.
* Increasing the return on assets calculated on an annual basis by 1.4% and the return on equity by 9.5% for the year 2021.
* The ratio of non-performing loans and advances to total loans and advances increased; It reached 4.1% on December 31, 2021.
* Provision for credit losses decreased by 35.3% year-on-year.
performance summary
The bank’s total revenues amounted to 3.2 billion dirhams for the financial year ended December 31, 2021, a decrease of 9.4% compared to the same period of the previous year. Net interest income and net income from Islamic financing amounted to AED 2.2 billion for the fiscal year 2021, down 14.1% year-on-year. Non-interest income recorded an increase of AED 23.7 million on an annual basis to reach AED 1.1 billion, mainly due to an increase of AED 54.1 million in net fee and commission income. Operating expenses remained stable on an annual basis, while the cost to income ratio closed at 43.2% for the year.
Total loans and advances recorded an increase of 2.0 billion dirhams to reach 34.2 billion dirhams, an increase of 6.1% year on year, which directly contributed to the increase in the bank’s total assets by 6.7% to reach 56.3 billion dirhams compared to December 31, 2020. While customer deposits recorded an increase By AED 702.8 billion to reach AED 37.6 billion, an increase of 1.9% compared to December 31, 2020.