National Bank of Ras Al Khaimah reported a more than threefold increase in its fourth-quarter net profit as provisions for loans and advances dropped amid continued economic recovery.
Net income for the three months to the end of December climbed to Dh223.6 million ($60.92m) from Dh66.7 million a year earlier, RAKBank said in a statement on Tuesday.
Impairment charges for the quarter dropped to Dh197.7m from Dh377.1m recorded at the end of the fourth quarter of 2020.
The lender's full-year 2021 net income climbed 50 per cent year on year to Dh758.3m, while provision charges for loan losses decreased more than 35 per cent annually to Dh1.07 billion for the 12-month period.
“RAKBank had a strong finish to 2021, driving net profit for the year," said Peter England, RAKBank's chief executive.
"Income growth has been a challenge in 2021 as a result of very little business activity during 2020. However, we saw this gradually turn around as the year progressed and the business momentum in the second half of 2021 reflected positively on the bank’s performance."
The bank's asset quality has improved significantly and its provisions for 2021 were the "lowest they have been in the past six years" helped by a strong rebound in the economy, he said.
"We continue to transform our bank with a focus on simplification, digitalisation and building a culture of excellence," Mr England said.
The bank’s total assets reached Dh56.3 billion at the end of last year, a 6.7 per cent increase over 2020. Its gross loans and advances climbed 6.1 per cent for the period to Dh34.2bn, while customer deposits grew by 1.9 per cent to Dh37.6bn.
The return on average assets ratio closed the year at 1.4 per cent compared with 0.9 per cent for the previous financial year, while return on average equity was 9.5 per cent, up from 6.5 per cent in 2020, it said.
The bank's board has recommended a cash dividend of 22.5 fils per share subject to shareholders’ approval.
In December, RAKBank announced the appointment of Raheel Ahmed as its new chief executive, replacing Mr England, who is retiring to Australia after leading the bank for eight years.
With 30 years' banking experience in Africa, the Middle East, Europe and Asia, Mr Ahmed is joining RAKBank from Barclays UK, where he was a member of the executive committee and chief product and analytics officer, the bank said in a statement at the time.
