RAKBANK witnesses a 43% drop in Q1 profit due to Covid-19 impact

UAE

The National Bank of Ras Al-Khaimah (RAKBANK) saw a 43.2% decrease in net profit in the first quarter of 2020 by 153.3 million dirhams, compared to the first quarter of 2019 due to an increase in the provisions of IFRS 9 that were designated as precautionary measures to combat the economy. Covid-19 effect.

The bank’s total income of AED1.0 billion remained constant on an annual basis and increased by 2.1% compared to the fourth quarter of 2019, while its total assets amounted to AED59.8 billion on March 31, 2020, after increasing by 11.7% on an annual basis – year and 4.6% so far.

RAKBANK was on track for one of its best quarters on record until the events around Covid-19 began to unfold, having had an exceptional January and February.

Its total assets increased by AED2.6bn or 4.6% year-to-date, and by AED6.2bn year-on-year, with gross loans and advances being major contributions, having risen by AED1.6bn, as well as the bank placements, which grew by AED3.6bn.

The bank is prepared to reduce fees and rates for its customers in Q2 2020 as a result of the UAE’s financial stimulus packages.

The bank is continuously monitoring the developments of Covid-19 and is always prepared to support its customers facing financial hardship or loss of income due to its economic impact on individuals, SMEs, and corporates, including elimination or reduction of any fees and rates.

This important step underscores the resilience of the UAE’s financial system and the strength of its regulators.