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.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
Rankings
ATP: 1. Novak Djokovic (SRB) 10,955 pts; 2. Rafael Nadal (ESP) 8,320; 3. Alexander Zverev (GER) 6,475 ( 1); 5. Juan Martin Del Potro (ARG) 5,060 ( 1); 6. Kevin Anderson (RSA) 4,845 ( 1); 6. Roger Federer (SUI) 4,600 (-3); 7. Kei Nishikori (JPN) 4,110 ( 2); 8. Dominic Thiem (AUT) 3,960; 9. John Isner (USA) 3,155 ( 1); 10. Marin Cilic (CRO) 3,140 (-3)
WTA: 1. Naomi Osaka (JPN) 7,030 pts ( 3); 2. Petra Kvitova (CZE) 6,290 ( 4); 3. Simona Halep (ROM) 5,582 (-2); 4. Sloane Stephens (USA) 5,307 ( 1); 5. Karolina Pliskova (CZE) 5,100 ( 3); 6. Angelique Kerber (GER) 4,965 (-4); 7. Elina Svitolina (UKR) 4,940; 8. Kiki Bertens (NED) 4,430 ( 1); 9. Caroline Wozniacki (DEN) 3,566 (-6); 10. Aryna Sabalenka (BLR) 3,485 ( 1)
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What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
