RAKBANK announces Q2 2008 results

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

Funded income grows by 60%

Net interest income at Dhs402m increased by 60% compared with 30th June 2007. This was due to growth in the Small Business, Commercial loans, Mortgage finance and Credit Card portfolios.

Gross Loans and advances ended the quarter at Dhs9.92bn an increase of 17% over 31st December 2007 and an increase of 28% compared to the 30th June 2007. The Personal Banking portfolio continued to grow during the quarter in line with targeted expansion. The mortgage loan portfolio saw an increase of 18% since the end of 2007.

The bank's total equity increased to Dhs1.82bn whilst the annualised ROE (Return on Equity) increased to 37%.

Fee, commission and other income grows by 42%

Fee, commission and other income at Dhs241m was 42% up on 30th June 2007. The Bank continues with its 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.

Assts & liabilities

Total assets as at 30th June 2008 were Dhs13.1bn, a 19% increase over 31st December 2007 (Dhs10.97bn). This resulted mainly from the growth in net loans and advances by Dhs1.5bn.

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 Dhs1.6bn from 31st December 2007 from a combination of term and transaction deposits.

Capital adequacy

The Bank's liquidity position continues to be strong. The capital adequacy ratio at the end of current quarter stood at 14.1%, against a minimum of 10% as prescribed by the Central Bank.