RAKBANK reports record growth in Profits to AED 258.81 M

The Board of Directors have recommended 30% dividend comprising a cash pay out of 15% and a 15% issue of bonus shares. Earnings per share grew by 37 % to AED 0.48 compared to AED 0.35 for 2005.

The profitability ratios continue to grow consistently with the return of average equity at 23% and return of average assets of 3.2%. The share of non-interest income has also grown by a huge 59% to close the year at AED 276 million compared to AED 174 million in 2005. This is in line with the bank's strategy to diversify its sources of revenue. The bank improved its overall operational efficiency resulting in a Cost to income ratio of 48% compared to 52% in 2005.

Net interest income grew by 23 % to AED 380 million from AED 310 million in 2005 which has been underpinned by strong and consistent growth in the underlying assets. The bank witnessed strong growth in all its major asset products including Cards, Mortgages, Retail and Commercial loans, Corporate and SME banking.

While total assets at AED 8.84 billion grew by 21 % the banks loans and advances grew by 26% to close at AED 6.8 billion. The bank has witnessed consistent growth across all its major asset products.

The growth in assets were funded through a combination of growth in customer deposits, increase in medium term borrowings and Equity. Customer deposits at AED 5.9 billion grew by 20%. The bank also successfully increased the medium term borrowings by AED 550 Million as a part of the MTN program established in 2005.

The results have been achieved through a combination of providing customer focused assets and liabilities products while at the same time maintaining very high service quality standards within the bank. RAKBANK was declared one of the best retail banks for service quality in 2006.

The bank has 17 branches and has opened 3 Kiosks in 2006 taking the number of Kiosks to 8 at the year-end.