Record growth continues, RAKBANK delivers AED 772M profit before tax despite increased global uncertainty

Ras Al Khaimah, United Arab Emirates, April 21, 2025 - The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for first Quarter of 2025

Key Financial Highlights – Q1 2025

• Profit after tax of AED 704M for Q1'25 up 22.7% over Q1'24
• Operating Profit of AED 866M up 10.2% YoY on the back of strong growth in balance sheet and non-interest income
• Operating Expenses grew by 11.8% vs last year driven by continued investments in technology, data, people and customer experience. Cost to income ratio (CIR) at 33.4% vs. 33.1% for Q1'24
• Total Assets have crossed AED 90B for the first time in Bank's history
• Gross loans & advances surpassed AED 50B mark, reflecting a 16.7% YoY increase. Growth driven by all segments, with Wholesale Banking loans growing by 30.1% YoY, aligning with the bank's diversification strategy
• Customer deposits reached AED 61.0B, up 18.2% YoY, with a CASA1 ratio of 65%, up 10.2% YoY, one of the highest in the industry
• Portfolio credit quality remains robust with cost of risk at 0.8% as against 1.5% during the same period last year, supported by a strategic shift in business mix towards secured, low risk assets
• The impaired loan ratio as at Q1'25 improved to 2.1% against 2.6% as at Q1'24 while 'Provisions to Gross Loans' ratio of 5.6% compared to 6.0% as of Q1'24, providing adequate coverage
• Shareholder returns remained strong with Return on Equity (ROE) of 22.4% against 21.4% in Q1'24 and Return on Assets (ROA) of 3.2% against 3.1% in Q1'24
• The Bank remains well capitalized with capital adequacy ratio (CAR) at 18.6% for Q1'25 against 17.2% as at Q1'24
• Strong liquidity position is reflected by an Eligible Liquid Asset Ratio of 17.1% vs. 13.5% at Q1'24 and Advances to Stable Resources Ratio at 76.4% vs. 78.7% at Q1'24