RAKBANK quarterly results announcement

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

Funded income grows by 47%

Net interest income at Dhs398m increased by 47% when compared to September 2006. This was due to growth in the mortgage finance, commercial Loan and credit card portfolios.

Gross loans and advances ended the period at Dhs8bn an increase of 13% over 31st December 2006 and an increase of 18% compared to 30th September 2006. The Personal Banking portfolio continued to grow during the period in line with targeted expansion. The mortgage loan portfolio saw an increase of 40% over December 2006.

The bank's total equity increased to Dhs1.46bn whilst the annualised ROE (Return on Equity) improved to 30%.

Fee, commission and other income grows by 29%

Fees, commission and other income at Dhs259m was up by 29% when compared to 30th September 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 September 2007 stood at Dhs10.31bn, a 17% increase from 31st December 2006 (Dhs8.84bn). The main growth was in net loans and advances (Dhs942m).

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 Dhs1.2bn from 31st December 2006 mainly in time deposits and transaction account deposits.

Capital Adequacy

The Bank's liquidity position continues to be strong. The capital adequacy ratio at the end of current period stood at 14.13%, against a minimum of 10% as prescribed by the Central Bank.

Ratings

The current ratings are detailed below:

Rating Agency/ Deposits/ Financial Strength/ Outlook Support
Moody's
Baa1 / P-2
D+

Fitch
A-/ F2 -
Stable 1

Capital Intelligence
BBB+/ A2
BBB+
Stable 3