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Thursday, 28 July 2016

RAKBank net income slumps as loans gone sour almost double | The National

RAKBank net income slumps as loans gone sour almost double | The National:

"RAKBank, the Ras Al Khaimah lender that specialises in small and medium-sized enterprises, said its second-quarter net income fell almost 45 per cent as money set aside for loans gone sour almost doubled.

Net profit attributable to the owners of the parent decreased to Dh195.7 million compared with Dh353.9m in the same period the previous year. Provision for impairment of loans and advances rose to Dh437.1m in the second quarter from Dh233.8m in the same period last year. The bank said payment defaults came from unsecured loans and loans to SMEs as well as from its commercial bank lending unit.


"Looking ahead, we expect provisions to settle down in the second half of the year as the trends we are currently seeing indicate that the worst is over for our business banking portfolio," said Peter England, RAKBank’s chief executive."



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