RAKBANK reports a net profit of AED 292.05 million for the nine months ended 30 September 2007

RAKBANK reports a net profit of AED 292.05 million for the nine months ended 30 September 2007

30 September 2007 - The National Bank of Ras Al-Khaimah (RAKBANK) reported a net profit of AED 292.05 million for the nine months ended 30 September 2007, a 51% increase over the same period in 2006. The current period's increase continues the Bank's history of solid growth performance.

Funded Income grows by 47%

Net interest income at AED 398 million increased by 47% when compared to September 2006. This was due to growth in the mortgage finance, commercial Loan and credit card portfolios.

Gross loans and advances ended the period at AED 8 Billion an increase of 13% over 31^st December 2006 and an increase of 18% compared to 30^th September 2006. The Personal Banking portfolio continued to grow during the period in line with targeted expansion. The mortgage loan portfolio saw an increase of 40% over December 2006.

The bank's total equity increased to AED 1.46 Billion whilst the annualised ROE (Return on Equity) improved to 30%.

Fee, commission and other income grows by 29%

Fees, commission and other income at AED 259M was up by 29% when compared to 30^th September 2006. This is in line with the Bank's 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 30^th September 2007 stood at AED 10.31 Billion, a 17% increase from 31^st December 2006 (AED 8.84 billion). The main growth was in net loans and advances (AED 942 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 1.2 Billion from 31^st December 2006 mainly in time deposits and transaction account deposits.

Capital Adequacy:

The Bank's liquidity position continues to be strong. The capital adequacy ratio at the end of current period stood at 14.13%, 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 Baa1/P-2 D+ - -

Fitch A-/F2 - Stable 1

Capital Intelligence BBB+/A2 BBB+ Stable 3