Financial results ended 31 March 2008

Financial results 31 March 2008

The National Bank of Ras Al-Khaimah (RAKBANK) reported a net profit of AED 142.31 million for the quarter ended 31 March 2008, a 65% increase over the same period in 2007 and over 30% growth from the previous quarter. The current quarter's increase continues the Bank's recent history of solid growth performance.

Funded Income grows by 54%

Net interest income at AED 185 million increased by 54% compared with 31^st March 2007. This was due to growth in the Small Business, Mortgage finance and Credit Card portfolios.

Loans and advances ended the quarter at AED 9.1 Billion an increase of 8% over 31 December 2007 and an increase of 24% compared to the 31^st March 2007. The Personal Banking portfolio continued to grow during the quarter in line with targeted expansion. The mortgage loan portfolio saw an increase of 7% over December 2007.

The bank's total equity increased to AED 1.65 Billion whilst the annualised ROE (Return on Equity) increased to 35%.

Fee, commission and other income grows by 44%

Fee, commission and other income at AED 117 million was 44% up on 31 March 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 31^st March 2008 were AED 11.8 billion, a 7% increase over 31^st December 2007 (AED 10.97 billion). This resulted mainly from the growth in net loans and advances by AED 680 million

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 600 million from 31^st December 2007 as a result of increases in term deposits.

Capital Adequacy

The Bank's liquidity position continues to be strong. The capital adequacy ratio at the end of current quarter stood at 16%, 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 Baal/P-2 D+ - -

Fitch A-/F2 - stable 1

Capital Intelligence BBB+/A2 BBB+ stable 3

The 31^st March 2008 interim condensed financial information as reviewed by our auditors can be found on the Bank's website: www.rakbank.ae.