Ras Al Khaimah, United Arab Emirates, October 21, 2024 – The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the Sep’24 YTD.

Key Financial Highlights – Sep’24 YTD

RAKBANK delivers record net profit after tax of AED 1.7B, growth of 25% YoY, driven by growth in loan portfolio across all business segments, improved asset quality and tailwinds from higher net interest income.

• Operating income for YTD Sep’24 is up 8.1% YoY, supported by a net interest margin of 4.6%, on the back of well diversified asset growth, stable and loyal CASA customer base, augmented by higher non-interest income.
• Operating Expenses remained flat to last year at AED 1.2B for Sep’24 YTD. Cost to income ratio (CIR) at 33.6% compared to 36.2% for Sep’23 YTD as the result of improving operating efficiencies.
• Gross loans & advances at AED 48.9B as at Sep’24, up 19.1% YoY, driven by growth across all segments, with Wholesale Banking loans and advances growing by 41% YoY, in line with diversification strategy.
• Customer deposits at AED 57.3B 18.2% YoY, with a CASA ratio of 62.4%, remaining one of the highest in the industry
• Portfolio credit quality remains robust with cost of risk at 1.6% YTD Sep’24 as against 2.5% during the same period last year, supported by a benign credit environment and a strategic shift in business mix towards secured, low risk assets.
• Total provisions coverage on gross loans & advances is at 5.6% compared to 5.9% in Sep’23.
• Shareholder returns remain strong with Return on Equity (ROE) of 20.6% and Return on Assets (ROA) of 2.9%.
• The Bank remains liquid and well capitalized with capital adequacy ratio (CAR) at 19.6% for Q3’24 against 17.8% as at the close of FY’23.
• Strong liquidity position is reflected by an Eligible Liquid Asset Ratio of 15.0% (vs. 13.0% at FY’23) and Advances to Stable Resources Ratio at 80.4% (vs. 82.1% at FY’23)
• The impaired loan ratio as at Q3’24 improved to 2.2% against 2.6% as at FY’23.

Key Financial Highlights – Q3’24

• Profit before tax for Q3’24 was at AED 659M, reflecting an increase of 45.7% YoY.
• Operating Income for Q3’24 was at AED 1,204M, reflecting an increase of 7% YoY.
• Gross loans & advances for the quarter are up 12.1% vs Q2’24 driven by growth across all the segments, with Wholesale banking portfolio closing at AED 16B.
• Customer Deposits decreased by 2.1% vs Q2’24, as high-cost time deposits matured during the quarter.