Abu Dhabi – Mubasher: The National Bank of Ras Al Khaimah (RAKBANK) has reported AED 436.04 million net profits attributable to the owners during the January-September period of 2020, down from AED 839.13 million in the same period of 2019.

Lower profits are attributed to reduced income resulting from a subdued loan demand and higher IFRS 9 provisions that were set as precautionary measures amid the coronavirus (COVID-19) economic repercussions, according to the bank's consolidated interim financials for the nine-month period ended on 30 September 2020.

The bank's net interest income decreased to AED 1.64 billion during the first nine months of 2020 from AED 1.85 billion in the corresponding period of 2019.

The basic and diluted earnings per share (EPS) stood at AED 0.26 in the January-September period of 2020, versus AED 0.50 in the year-ago period.

During the third quarter (Q3) of 2020, the bank's net profits declined to AED 130.89 million from AED 284.62 million in the corresponding quarter of 2019.

Moreover, the bank's total assets reached AED 52.3 billion as at 30 September 2020, lower than from AED 57.12 billion as at 31 December 2019.

Commenting on the bank's performance, the CEO of RAKBANK, Peter England, said: "Since the gradual reopening of the business, we are seeing signs of improvement in the UAE economy. However, customer demand for loans has declined considerably as many SMEs and individuals continue to take a cautious stand."

It is noteworthy to mention that in the first half (H1) of 2020, the bank saw a 44.7% decrease in net profits to AED 306.6 million, compared to AED 554.9 million in the same period of 2019.