RAS AL KHAIMAH: The net profit of RAKBANK and its subsidiaries rose to Dhs810.5 million last year, a rise of Dhs147.5 million, 22.3 per cent, over 2016, according to the Directors’ report to shareholders.

Group total assets rose by 14.2 per cent to Dhs48.5 billion, compared to the end of 2016 while customer deposits grew by 9.4 per cent to Dhs32.2 billion.

Gross loans and Advances closed the year at Dhs33.2 billion, up by 11.6 per cent over the previous year, while return on average assets closed at 1.8 per cent and return on average equity at 10.6 per cent.

The increase in net profit, the directors reported, “was mainly due to a decrease of Dhs254.7 million in provision for impairment of loans.” The ratio of non-performing loans and advances to gross loans and advances fell from 4.2 per cent to 4 per cent

Total operating income fell by 0.8 per cent, from Dhs29.5 million to Dhs3.8 billion, due to the rebalancing of the loan portfolio, with a decrease of Dhs101.9 million in net interest income and income from Islamic finance, net of distribution to depositors.

Non-interest income grew by Dhs72.4 million to Dhs1.1 billion, due to increases of Dhs62 million in income from fees and commissions, Dhs5.3 million in other income, Dhs19.4 million in gross insurance underwriting profit and Dhs24.1 million in foreign exchange and derivative income. This was offset by a decrease of Dhs38.4 million in investment income compared to 2016, the report said.

Operating costs rose by 5.7 per cent to Dhs77.8 million, with the Group’s cost to revenue ration increasing from 35.6 per cent in 2016 to 38 per cent last year.

A cash dividend to shareholders of 30 per cent has been proposed, with 38 per cent of the net profit being retained.

RAK Insurance

The Ras AL Khaimah National Insurance Company (RAK Insurance) has reported a net profit of Dhs32 million for 2017, compared to Dhs23.4 million in 2016, an increase of 36.6 per cent.

In a filing to the Abu Dhabi Securities Exchange (ADX) the company said that gross written premiums for 2017 increased by 13.4 per cent to Dhs471.7 million, compared to Dhs415.9 million in 2016, while underwriting profit from insurance operations increased by 407 per cent from Dhs7.2 million in 2016 to Dhs36.6 million.

Total assets increased from Dhs709.4 million in 2016 to Dhs862.1 million, an increase of 21.5 per cent, while shareholders’ equity rose from Dhs234.8 million to Dhs253 million.

Total liabilities rose from Dhs474.6 million in 2016 to Dhs609 million, with the company stating that this was “primarily due to increased insurance contract liabilities and other insurance payable resulting from the growth in our ‘book of business’ during the year.”

Basic earnings per share rose from Dhs0.21 to Dhs0.29, on a capital base of Dhs110 million.

WAM