RAKBank’s first quarter net profit slides due to coronavirus provisions – The National

RAKBank’s first quarter net profit slides due to coronavirus provisions – The National

RAKBank's first quarter net profit slides due to coronavirus provisions. Lender remains 'well positioned to weather the current challenges', says chief executive. The National Bank of Ras Al-Khaimah (RAKBank) reported a 43 per cent drop in first-quarter net profit on higher provisions for expected loan losses as a coronavirus-linked economic slowdown ensues.. Net profit attributable to owners of the bank for the three months ending March 31 declined to Dh153 million, the lender said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.. Profit for the period fell "due to higher IFRS 9 provisions that are set as precautionary measures to combat the economic impact of the novel coronavirus", the lender said.. Net provision for credit loss climbed 39 per cent year-on-year to Dh480.4m.. Net interest income and net income from Islamic financing also rose almost 2 per cent to Dh696m, while non-interest income dropped 4 per cent to Dh305m during the period.. "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 Dh130m for the quarter," RAKBank chief executive Peter England said