RAKBANK announces first half 2007 results

The current period's increase continues the Bank's recent history of solid growth performance.

Funded income grows by 44 per cent

Net interest income at AED 251 million increased by 44% over 30th June 2006. This was due to growth in the mortgage finance, commercial Loan and credit card portfolios.

Gross loans and advances ended the period at AED 7.73 Billion an increase of 9% over 31st December 2006 and an increase of 21% compared to 30th June 2006. The Personal Banking portfolio continued to grow during the period in line with targeted expansion. The mortgage loan portfolio saw an increase of 26% over December 2006.

The bank's total equity increased to over AED 1.35 Billion whilst the annualised ROE (Return on Equity) improved to 30%.

Fee, commission and other income grows by 37 per cent

Fees, commission and other income at AED 170M were up by 37% when compared to 30th June 2006. This is in line with the Bank's strategy of enhancing fee income by providing quality service to its customers.

The Bank continues to invest in product development, technology and other delivery channels and remains in the forefront of Emiritisation in the banking industry.

Assets & liabilities

Total assets as at 30th June 2007 were AED 9.5 billion, a 7% increase from 31st December 2006 (AED 8.84 billion) resulting mainly from the growth in net loans and advances by AED 642 million

The growth in the asset book has been supported by a combination of increases in customer deposits and shareholders' equity. Customer deposits were up by AED 673 million from 31st December 2006 mainly as a result of increases in transaction accounts deposits.

Capital adequacy:

The Bank's liquidity position continues to be strong. The capital adequacy ratio at the end of current period stood at 15%, against a minimum of 10% as prescribed by the Central Bank.

Ratings

The current ratings are detailed below: