RAKBank net profit slips 43% on higher provision – ZAWYA

RAKBank net profit slips 43% on higher provision – ZAWYA

The National Bank of Ras Al Khaimah (RAKBank) on Sunday announced net profit of Dh153.5 million for Q1 2020, a decrease of 43.2 per cent compared to Q1 2019 due to higher IFRS 9 provisions set as precautionary measures to combat the impact of coronavirus.. Net interest income and net income from Shariah-compliant Islamic financing increased by 1.8 per cent year on year and the non-interest income declined by Dh12.2 million to Dh305.0 million, mainly due to the year-on-year decrease of Dh10.4 million in net fees and commission income and Dh6 million in forex and derivative income.. Despite this, our operating performance for the first quarter remained strong," Peter England, CEO of RAKBank.. "Like most banks globally, we have taken the pre-emptive judgemental overlays in our IFRS 9 provisions to factor in the challenges that lie ahead, which has led to additional provisions of just over Dh130 million for the quarter.. While commenting on the outlook for Q2 202, Peter England said they are continuously monitoring the developments of Covid-19 and ready to support customers facing financial hardship or loss of income due to its economic impact on individuals, SMEs and corporates, including elimination or reduction of many fees and