Financial results ended 30 June 2008

Financial results 30 June 2008

The National Bank of Ras Al-Khaimah (RAKBANK) reported a net profit of AED 311.62 million for the half year ended 30th June 2008, a 71% increase over the same period in 2007 and over 19% growth from the previous quarter. The current quarter's increase continues the Bank's recent history of solid growth performance.

Funded Income grows by 60%

Net interest income at AED 402 million increased by 60% compared with 30th June 2007. This was due to growth in the Small Business, Commercial loans, Mortgage finance and Credit Card portfolios.

Gross Loans and advances ended the quarter at AED 9.92 Billion an increase of 17% over 31st December 2007 and an increase of 28% compared to the 30th June 2007. The Personal Banking portfolio continued to grow during the quarter in line with targeted expansion. The mortgage loan portfolio saw an increase of 18% since the end of 2007.

The bank's total equity increased to AED 1.82 Billion whilst the annualised ROE (Return on Equity) increased to 37%.

Fee, commission and other income grows by 42%

Fee, commission and other income at AED 241 million was 42% up on 30th June 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 June 2008 were AED 13.1 billion, a 19% increase over 31stDecember 2007 (AED 10.97 billion). This resulted mainly from the growth in net loans and advances by AED 1.5 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 1.6 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 14.1%, against a minimum of 10% as prescribed by the Central Bank.

Ratings

The current ratings are detailed below:

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