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

Ras Al Khaimah, United Arab Emirates, July 29, 2024 – The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the first Half of 2024.

Key Financial Highlights – H1 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.