Financial results ended 30 September 2008

Financial results ended 30 September 2008

The National Bank of Ras Al-Khaimah (RAKBANK) reported a net profit of AED 480.65 million for the nine months ended 30th September 2008, a 65% increase over the same period in 2007. The current quarter’s increase continues the Bank’s recent history of solid growth performance.

Funded Income grows by 62%

Net interest income at AED 645 million increased by 62% compared with 30th September 2007. The bank has a diversified retail portfolio and has seen growth in the small business, credit card, mortgage and personal loan segments.

Gross Loans and advances ended the quarter at AED 10.7 Billion an increase of 26% over 31st December 2007 and an increase of 34% compared to 30th September 2007. The Personal Banking portfolio continued to grow during the quarter in line with targeted expansion.

The bank has no direct or indirect exposure to any Sub-prime or similarly structured product.

The bank’s total equity increased to AED 1.97 Billion whilst the annualised ROE (Return on Equity) increased to 36.13%.

Fee, commission and other income grows by 36%

Fee, commission and other income at AED 351 million was 36% up on 30th September 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.

Assets & Liabilities

Total assets as at 30th September 2008 were AED 13.7 billion, a 25% increase over 31stDecember 2007 (AED 10.97 billion). This resulted mainly from the growth in net loans and advances by AED 2.28 billion

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 2.1 billion 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 13.15%, against a minimum of 10% as prescribed by the Central Bank.

Ratings

The current ratings are detailed below:

The 30^th September 2008 interim condensed financial information as reviewed by our auditors can be found on the Bank’s website.