MIRA INFORM REPORT
|
Report Date : |
17.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL BANK OF RAS AL KHAIMAH (RAKBANK) |
|
|
|
|
Registered Office : |
RAK Bank
Building, Oman Street, Al Nakheel, P O Box 5300, Ras Al Khaimah |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Year of Establishment : |
1976 |
|
|
|
|
Legal Form : |
Public Joint Stock Company |
|
|
|
|
Line of Business : |
Providers of retail and corporate banking services |
|
|
|
|
No. of Employees
: |
750 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
US$ 10,000,000 |
|
Status : |
Good |
|
Payment
Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
United Arab Emirates |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company Name : NATIONAL BANK OF RAS AL KHAIMAH (RAKBANK)
Country of Origin : Ras Al Khaimah, United Arab Emirates
Legal Form : Public Joint Stock Company
Registration Date : 1976
Issued Capital : UAE Dh 1,154,439,000
Paid up Capital : UAE Dh 1,154,439,000
Total Workforce : 750
Activities : Providers of retail and corporate banking services
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit Limit : US$ 10,000,000
NATIONAL BANK OF RAS AL KHAIMAH (RAKBANK)
Registered &
Physical Address
Building : RAK Bank Building
Street : Oman Street
Area : Al Nakheel
PO Box : 5300
Town : Ras Al Khaimah
Country : United Arab Emirates
Telephone : (971-7) 2062222 / 2221127
Facsimile : (971-7) 2435454 / 2224202
Email : nbrakho@emirates.net.ae
Premises
Subject operates
from a medium sized suite of offices that are owned and located in the Central
Business Area of Ras Al Khaimah.
Branch
Offices
·
PO Box:
31011
Ajman
Tel: (971-6) 5988266 / 7485163
Fax: (971-6) 7485163
·
Dubai
Tel: (971-4) 2226291
Fax: (971-4) 2281312
Subject has a total of 31 branches and 145
ATM’s located throughout the United Arab Emirates.
Name Position
·
Shaikh
Omar Bin Saqr Al Qasimi Chairman
·
Shaikh
Salim Bin Sultan Al Qasimi Director
·
Hamad
Abdulaziz Al Sagar Director
·
Abdul
Aziz Abdulla Al Zaabi Director
·
Essa
Ahmad Abu Shuraija Al Neaimi Director
·
Yousuf
Obaid Essa Director
·
Ahmad
Essa Al Naeem Director
·
Graham
Honeybill Chief
Executive Officer
·
Ian
Hodges Head
of Personal Banking
·
Anil
Sukhia Head
of Corporate Banking
·
Tim
Basford Chief
Operating Officer
·
Dharmesh
Pandya Finance
Manager
Date of Establishment : 1976
Legal Form :
Public Joint Stock Company
Issued Capital : UAE Dh 1,154,439,000
Paid up Capital : UAE Dh 1,154,439,000
Name of Shareholder
(s) Percentage
·
Government
of Ras Al Khaimah 52.80%
·
Local
businessmen and private investors 47.20%
Activities: Engaged in the provision of retail and
corporate banking services.
Operating Trend: Steady
Subject has a
workforce of approximately 750 employees.
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh 000’s)
Balance Sheet 31/12/10 31/12/09
ASSETS
Cash and balances
with the UAE Central Bank 1,935,059
1,044,726
Due from other
banks 1,303,207
1,472,985
Loans and
advances 16,401,741
13,429,696
Investment
securities 767,983
398,327
Property and
equipment 771,948
617,371
Other assets 200,013
154,511
Total assets 21,379,951
17,117,616
LIABILITIES
Due to other
banks 100,469
35,155
Due to customers 17,054,596
12,850,031
Debt security in
issue -
1,068,305
Other liabilities
462,920
330,762
Provision for
employees’ end of service benefits 45,608
36,387
Total liabilities
17,663,593
14,320,640
SHAREHOLDERS’
EQUITY
Share capital 1,154,439
962,033
Share premium 110,350
110,350
Retained earnings
782,194
556,809
Other reserves 1,669,375
1,167,784
Total
shareholders’ equity 3,716,358
2,796,976
Total liabilities
and shareholders’ equity 21,379,951
17,117,616
Income
Statement
Interest income 2,046,781
1,616,117
Interest expense (438,219)
(387,099)
Net interest
income 1,608,562
1,229,018
Fee and
commission income 529,798
412,479
Foreign exchange
income 43,066
37,262
Income from
investment securities 13,353
28,265
Other operating
income 18,748
17,217
Operating income 2,213,527
1,724,241
Operating
expenses (941,002)
(746,206)
Impairment charge
on loans and advances net of write back/off (269,774) (251,886)
Net profit for
the year 1,002,751
726,149
Local sources
consider subject’s financial condition to be Good.
No complaints
regarding subject’s payments have been reported.
RAKBANK has announced an AED1,203.5 million net profit for 2011, an
increase of 20% over 2010. Earnings were impacted as a result of the
Central Bank’s recently introduced guidelines on personal lending but the Bank
swiftly refocused its business towards SME and other lending opportunities
within the consumer banking segments. Net interest income increased by 23.4%
over 2010 to AED1,984.5 million. Total advances as at 31st
December 2011 increased by 12% over the previous year to reach AED18.4 billion
whilst total assets jumped by 14.6% to close at AED24.5 billion. The growth in
the asset book has been supported by a combination of increases in
shareholders’ equity and customer deposits with total deposits growing by
11.73% to close at AED18.3 billion compared with AED16.4 billion in 2010.
Commission was impacted by the new rules on retail lending but overall other
income grew by 7.9% to AED652.9 million.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.31 |
|
UK Pound |
1 |
Rs.79.04 |
|
Euro |
1 |
Rs.65.82 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.