RakBank FY20 profit plunges 54 pc to AED505 mn

BBN Report

Board proposes 15 pc cash dividend on share capital

RAS AL KHAIMAH/February 2-2021: The National Bank of Ras Al-Khaimah (RAKBANK) reported a 53.9 per cent decline in its 2020 (FY20) net profit to AED505.4 million.

The total assets stood at AED52.8 billion, decreasing by 7.6 over 2019, and gross loans and advances closed at AED32.2 billion, down by 11.2 over the previous year.

However, business fundamentals remain strong with deposits growing by 0.3 per cent including the CASA growth of AED5.1 billion (22.3 per cent).

Return on Equity down

The return on average assets ratio closed the year at 0.9 compared with 2 per cent for the previous year and return on average equity (RoE) was 6.5 per cent, compared with 14.9 per cent in 2019.

The board of directors recommended a distribution of cash dividend of 15 per cent of the share capital (15 fils per share) for the shareholders’ consideration and approval at the Annual General Meeting (AGM).

RakBank CEO, Peter England (seen in the picture) said the efforts of recent years to diversify the bank’s balance sheet and revenue stream delivered strong results in the first couple of months of 2020.

“Our Treasury business displayed an increase in operating profits year on year. Additionally, our income from investments recorded significant revenue growth as compared with the previous year. When the global pandemic struck at the beginning of 2020, the bank activated its business continuity Plan,” England said.

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