Retail becomes sore point in RakBank performance this time

Bank partners with Finance Ministry on eDirham payment Gateway

BBN Report

RAS AL KHAIMAH/October 25-2020: Retail banking, which always proved to be the bedrock of RakBank, has become the underbelly this time after contributing a loss of AED69.92 million to the bottom line of the bank for the three-month period ending September 30, 2020.

The bank’s net profit for the period fell 54 per cent to AED132 million when its wholesale banking came up with a profit of AED96.90 million against AED78.25 million a year earlier.

Business banking contributed AED129.17 million to the bank’s profit after setting aside a large amount of AED479.338 million for provision against credit loss. A year earlier, this division contributed AED496.869 million to the bottom line.

The bank that pruned its deposit base by more than AED2.6 billion during the year stayed somewhat low profile, maybe something to do with the COVID 19 too.

RakBank and eDirham Gateway

The National Bank of Ras Al Khaimah (RAKBANK) has partnered with the Ministry of Finance to present the third generation of eDirham, cashless payment platform that empowers users to make transactions easily.

RAKBANK is one of the partnering banks of the eDirham payment scheme as an eDirham acquiring bank that will be made readily available in the coming weeks to several government entities across the country starting with the respectable Ministry of Energy and Industry.

As an early adopter of eDirham, this initiative also encompasses an integrated ability by the bank to issue eDirhams through the RAKBANK digital banking platforms for individual and business customers to make payments seamlessly.

Engineer Sharif Salim Al Olama, Under-Secretary of the Ministry of Energy
and Infrastructure opined that eDirham offers users a more innovative, convenient, safe and effective system that contributes to the completion of transactions in a smooth, safe and efficient manner.

MoF keen to cooperate with more financial institutions

Commenting on the new move, Saeed Rashid Al Yateem, Assistant Undersecretary of Resource and Budget Sector at MoF said his ministry is keen to cooperate with various banks and financial institutions to expand the adoption and development of the eDirham system.

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, said the increased use in smartphones and smartwatches relative to the internet and mobile
data penetration in the country has resulted in the significant growth and constant
development of the digital payment landscape in all sectors and industries, especially
government.

 

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