Income, Profit & Balance sheet growth continues into 2024 as the Bank’s strategy embeds further. Record Net Profit before tax of AED 1.2B up 33% YoY

 The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the first Half of 2024.

RAKBANK delivers record net profit after tax of AED 1.1B, growth of 21% YoY, driven by diversified growth in balance sheet, continued sales momentum and strong credit quality.

Income up 8.7% YoY, supported by a net interest margin of 4.6%, on the back of well diversified asset growth and sticky CASA base, augmented by higher Foreign Exchange & Investment income.
Operating Expenditure was at AED 789M, reflecting a growth of 3% YoY, as the Bank continues to grow the business and invest in technology and talent on a sustainable basis.
Gross loans & advances at AED 43.7B up 9.4% YoY, driven by growth across all segments, with Wholesale Banking loans and advances growing by 19.4%, in line with the Bank’s diversification strategy.
Customer deposits at AED 58.5B up 19.4% YoY, with a CASA ratio of 61.6%.
Portfolio credit quality remains robust with cost of risk at 1.7% v/s 2.6% in H1’23, supported by benign credit environment and shift in business mix towards secured low risk assets.
Total provisions coverage on gross loans & advances is at 6.1% compared to 5.7% in H1’23.
Shareholder returns remain strong with Return on Equity (ROE) of 20.4% and Return on Assets (ROA) of 2.9%.
The Bank remains liquid and well capitalised with Capital Adequacy Ratio (CAR) at 18.0% vs. 17.8% as at 31st December 2023.
Strong liquidity position as reflected by an Eligible Liquid Asset Ratio of 15.5% and Advances to Stable Resources Ratio at 79.4%
The impaired loan ratio improved to 2.4% against 2.6% as at 31st December 2023.
 

Key Financial Highlights – Q2 2024

Operating Income for Q2’24 was at AED 1,174M, reflecting an increase of 6.6% YoY.
Profit before tax for Q2’24 was at AED 566M, reflecting an increase of 25.6% YoY.
Gross loans & advances for the quarter are up 1.1% vs Q1’24 driven by growth across all the segments, with Mortgage loans surpassing the AED 10B mark.
Customer Deposits reflected a growth of 5.6% vs Q1’24, driven by growth in both time & CASA deposits.