What's the buzz! Keep up with the latest news from RAKBANK.
RAKBANK Simplifies Account Opening for Business Customers
20/09/2014
With a strong focus on providing convenient digital banking solutions, RAKBANK has extended the Click & Collect service to business customers by offering them the convenience of applying for bank accounts through a completely online interface. This is the first service of its kind in the UAE where new business customers can now do away with a branch visit when opening their RAKBANK conventional or AMAL Current and Finance Accounts on.
Through Click & Collect, business customers can fill out the application form online for the account they are applying for and upload the required documents to the website. The Bank then conducts the necessary checks and within 48 hours the customer is contacted by a bank representative to complete the remaining formalities. Once the account is opened, the Debit Card and cheque book are sent to the customer by courier.
“As one of the most active banks in the country in small business banking, we are committed to offering business customers competitive products through superior service and convenient channels,” commented Ian Hodges, Head of Personal Banking at RAKBANK. “Click & Collect is in line with the Bank’s constant effort to ride the digital wave and joins RAKBANK Online and Mobile Banking to offer services that save our business customers’ time,” added Hodges.
RAKBANK launched Click & Collect for individuals back in 2013 for its Fast Saver, Current, and Savings Accounts. Since then Click & Collect has also been made available to customers who prefer to open Sharia-compliant accounts from AMAL including the AMAL Current and Savings plus the Jood Savings Accounts.
For more information about Click & Collect, please click here.
Card-less ATM Withdrawals Now Possible with RAKBANK MobileCash
18/08/2015
RAKBANK is once again leading the way in providing convenient digital banking solutions with the introduction of MobileCash. This new service gives customers the ability to withdraw cash and send money to their friends, family or anyone in the UAE instantly using nothing but their mobile phone, even if the recipient does not have a bank account.
The service runs off the advanced RAKBANK Mobile Banking App platform. An SMS with a one-time password is generated and sent to the customer or the person to whom they wish to send money. The code within the SMS can then instantly be used within 24 hours to withdraw cash from any of over 200 RAKBANK ATMs in the UAE without any need for a debit card. Withdrawals can be made for up to AED 5,000 which is also a simple and fast alternative to cheque payments.
RAKBANK has always been at the forefront of empowering customers with technology-based solutions aimed at saving them valuable time,” said Peter England, CEO at RAKBANK. “Be it our Click and Collect service, our RAKBANKdeals promotions and now the MobileCash service, we constantly innovate and think ahead, all with the ultimate aim of enhanced customer convenience.”
MobileCash comes in handy for those who have lost their Bank card, forgot to carry it, or are simply waiting for their card to be sent or activated. It can also be used to transfer money to people who do not have Bank accounts such as children and students. For more information on MobileCash please click here.
RAKBANK to Buy Majority Stake in RAKNIC
17/08/2014
RAKBANK announced that it had received shareholder approval for the acquisition of Ras al Khaimah National Insurance Company (RAKNIC). Shareholders voted in favour of the Bank buying a majority stake at AED 3.64 per share during its Ordinary General Assembly held today at the Bank’s headquarters in Ras Al Khaimah. This will be through an offer to all shareholders of RAKNIC.
Founded in 1974, RAKNIC is a successful, insurance provider listed on the Abu Dhabi Securities Exchange (ADX) and has a full license to issue general and life policies of Conventional Insurance.
Peter England, RAKBANK CEO, said: “RAKBANK has been greatly successful since it re-launch in 2001 by focusing on unsecured lending to individuals and small businesses. Today, we see a tremendous opportunity for growth in the Bank’s business by diversifying into complementary industries, particularly the local insurance market, which is estimated to exceed AED 30 billion this year. The Bank has undertaken a high level assessment of the value that could be created over the coming few years through the acquisition, and we believe the Bank can increase income streams, enhance our market presence, and create additional value for our shareholders. We are firm believers in service excellence and therefore see potential to offer customers a more wholesome experience in the long run by extending a one-stop shop for banking and insurance.”
The acquisition is still subject to approval by the Central Bank and the Insurance Authority.
RAKBANK achieved a net profit of AED 700.4 million for the half year ended 30 June 2014
21/07/2014
Total assets stood at AED 34.5 billion growing 21.8% year-on-year and 14.7% on a year-to-date basis. Gross loans and advances stood at AED 23.9 billion, up 12.9% year-on-year and 6.9% on a year-to-date basis. Gross Islamic financing assets increased by AED 1.1 billion compared to 31 December 2013.
Customer deposits grew by AED 2.4 billion to AED 25.5 billion compared to 31 December 2013. The growth came mainly from a rise of AED 1.1 billion in conventional demand deposits, AED 687 million in call deposits and AED 467 million in savings deposits. This was offset by a decrease in conventional time deposits by AED 412 million. However, there was a healthy growth in Islamic deposits of AED 599 million over December 31, 2013.
At 700.4 million net profit for the half year ended 30 June 2014 dropped by 59.6 million over the same period last year due to more normal levels of provisions for bad debts after abnormally low numbers in the first half of 2013. However, total operating income increased by AED 156.9 million to AED 1.7 billion, an increase of 10.2% compared to the half year ended 30 June 2013. This growth was mainly due to an increase of AED 114.9 million in net interest income and income from Islamic financing, and AED 42.0 million in non-interest income, which climbed by 12.3% over the same period last year. Operating costs increased by 11.5% to AED 740.2 million compared to the same period last year mainly due to increases in employment costs.
For the quarter ended 30 June 2014 the profit was AED 365.8 million which was higher by AED 31.3 million over the quarter ended March 31, 2014, reflecting continued improved operating income over the last quarter.
Net interest income plus net profit from Islamic financing for the half year ended 30 June 2014 grew by 9.6% compared to the half year ended 30 June 2013 to AED 1.3 billion. This was a result of higher interest income on loans and investments, a reduction in the cost of deposits as the Bank focused on accumulating low cost transaction accounts, and an increase in net income from Islamic financing to AED 58.1 million in line with the growing Islamic finance portfolio which commenced operations in 2013.
The total impairment charge for the half year stood at AED 258.4 million compared to AED 118.2 million half year ended 30 June 2013. Non-performing loans were steady at 2.4% of the loan portfolio and the annualized net credit losses to average loans and advances closed at 2.2%.
“We are seeing solid growth in almost all of our lines of business and the focus for the rest of 2014 is to strongly grow the bank’s top line as the full impact of our loan pipeline continues to flow through,” said Peter England, RAKBANK Chief Executive Officer. “We are seeing exceptionally strong growth in our SME and Commercial lending, which is a major engine for growth at RAKBANK. With a strong economic outlook for the UAE, we are confident that we can continue to build on our success in the market as we look ahead to the second half of 2014. We are in a strong competitive position to increase our market share as we plan to launch innovative products and services over the next two quarters, while maintaining our focus on service quality,” added England.
During the first half of 2014, the Bank successfully issued USD 500 million bond under its USD 1 billion medium term note program, through its subsidiary RAKFunding Cayman Ltd, to take advantage of the current low-cost financing opportunities in the bond market, to proactively tackle the duration mismatch that arises from funding longer tenure loans using short-term deposits, and diversify the investor base. The note, which was issued at a discounted rate of 99.275%, matures in 2019 and carries a fixed interest rate of 3.25% per annum.
The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 25.51% comprising entirely of Tier 1 capital. This is against a current minimum total capital ratio of 12% prescribed by the Central Bank in the UAE. At the end of the quarter, the regulatory liquid assets ratio was 21.4% and advances to stable resources ratio was 82%. Total shareholder’s equity totalled AED 6.4 billion including six months profit.
The Bank is currently rated by following leading rating agencies. The following ratings have remained unchanged during the half year.
Rating Agency | Deposits | Financial Strength | Support |
Moody’s | Baa1 / P-2 | D+ | - |
Fitch | BBB+ / F2 | C | 2 |
A-/ A2 | BBB+ | 2 |
RAKBANK Concludes Issuance of USD 500 million Bond
16/06/2014
The National Bank of Ras Al-Khaimah P.S.C. (“RAKBANK”), rated Baa1 by Moody's and BBB+ by Fitch (both with stable outlook), successfully priced a 5-year USD 500 million bond issuance. The bond was issued at 99.275% and will pay an annual coupon of 3.250%, equivalent to 160 bps over 5-year USD Mid Swaps. The issuance marks RAKBANK’s return to the bond markets after a hiatus of almost ten years and is the first non-government issuance from the Emirate of Ras Al-Khaimah.
The success of the transaction came on the back of a focused marketing strategy aimed at reintroducing RAKBANK’s credit story to international investors and included a roadshow covering Abu Dhabi, Dubai, Singapore and London.
The strong investor demand received for the issuance, as evidenced by an orderbook of USD 1.6 billion, representing an oversubscription of over 3.2 times, allowed RAKBANK to price at 160bps over USd Mid-Swaps, which was 10bps inside the initial price guidance of 170bps over USD Mid-Swaps. The investor base captured was well diversified with banks comprising 47% of the orderbook, followed by fund managers (36%), private banks (12%) and insurance companies (5%).
RAKBANK Chief Executive Officer, Peter England, said: “We are very pleased with the success of the transaction, which highlights the confidence placed by investors in the Bank. It was important for us to take advantage of the current low-cost financing opportunities in the bond market to proactively tackle the duration mismatch that arises from funding longer tenure loans using short-term deposits, a practice common in the UAE. Furthermore, the issuance allows us to diversify our sources of funding and access a wider base of investors.”
Standard Chartered Bank and National Bank of Abu Dhabi acted as Joint Arrangers and Joint Lead Managers, with Commercial Bank International and Union National Bank as Co-Managers on this transaction.
RAKBANK Goes an Extra Half Mile with the UAE's Longest Outdoor Advertisement
14/06/2014
RAKBANK is proud to announce that it is the first organization to be featured on the longest outdoor advertisement hoarding in the UAE. The hoarding extends for half a mile (800 meters) on the Sheikh Zayed Road that connects Dubai to Abu Dhabi and occupies a total area of 9,600 square meters.
“All motorists will catch a glimpse of the stretched hoarding which is almost the horizontal length of the iconic Burj Khalifa”, said Banali Malhotra, RAKBANK Head of Marketing. “By acquiring this premium advertising space on one of the most prominent roads in the UAE, the Bank aims to add visibility to the brand across emirates,” added Malhotra.
RAKBANK partnered with Capital Group to acquire this advertising space. From his end, Chairman of Capital Group, Manoj Bhojwani, said: “RAKBANK has been instrumental in our business growth over the years. We are happy to feature RAKBANK on our latest media innovation in the UAE, which is in line with our objective to provide our valued clients with far-reaching ways to showcase their brand in full limelight.”
Be it the RAKBANK unipole at the start of Al Garhoud Bridge, branding bus shelters, placing bridge banners, hoardings and mupis around town, or being the first to advertise on Abu Dhabi taxis, RAKBANK has always been a trendsetter when it came to outdoor advertising. It is a strong believer in the power of the medium to build brand recall.
So if you are driving on Sheikh Zayed Road that connects Dubai to Abu Dhabi, you are sure to lay your eyes for almost 30 seconds on the longest outdoor advertisement in the UAE. Alternatively, you can click on the following link to view video of the hoarding: http://www.youtube.com/watch?v=dfumAxkAr3U.
More RAKvalue with Car Prize Promotion
11/06/2014
RAKBANK is pleased to announce that it is offering a brand new Toyota Corolla car to one RAKvalue customer this coming August. Running until July 31st, the Bank promotion automatically enters Account holders, Card holders, and SME customers who have signed up for RAKvalue into the draw.
This is the second time that the Bank runs the RAKvalue promotion. Sreeraj Raju was the lucky winner who drove off with a Toyota Corolla after winning in the first RAKvalue promotion that ran during the months of March and April. “The aim of the RAKvalue prize campaign,” explained Banali Malhotra, RAKBANK Head of Marketing, “is to reach more customers and highlight the added value attached to this service.”
Ian Hodges, RAKBANK Head of Personal Banking, added: “According to customer feedback since its launch two years ago, RAKvalue is a cost-saving solution for many. It allows our Account, Card and SME customers to pay a flat monthly fee and receive a collection of banking, complimentary insurance, and lifestyle deals that they require on a regular basis.”
Starting from AED 50 a month, RAKvalue entitles Account holders to one free international remittance per month, free monthly chequebook, up to five free non-bank local ATM withdrawals per month, a free prepaid card, and much more depending on the selected tier. As for Credit Card holders, RAKValue’s choice of Executive or Premium packages offer customers one free international remittance per month, one free duplicate statement per month, and one free Credit Card cheque per year, plus one free cheque collection service from home for Premium holders. SME customers on the other hand can benefit from four free international remittances per month, a preferential buying/selling rate on USD, a free manager’s cheque or demand draft issuance per month, and more.
Complimentary insurance benefits for Account, Credit Card holders, and SME Account holders include Life Insurance, Secure Wallet, Travel Insurance, and Motor Insurance discount. In addition, customers receive free local roadside assistance and concierge services. RAKvalue also provides complimentary non-banking benefits exclusive to RAKvalue customers which include dining, shopping and lifestyle vouchers through RAKBANKdeals.ae.
For those who prefer Islamic Banking solutions, RAKBANK AMAL offers RAKvalue to individual and SME Account holders through AMAL Current, AMAL Savings and AMAL Jood Account plus a collection of Takaful and Lifestyle benefits for a nominal recurring fee.
Please click here to learn more about RAKvalue
About RAKBANK
RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country’s oldest local financial institutions and today one of its fastest growing and most dynamic banks. According to The Banker's Top 100 Bank Rankings for 2013, RAKBANK is the 1st in the Arab World by Return on Assets and 5th in the Arab World by Return on Capital.
RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels.
RAKBANK to Commence EMTN Roadshow
08/06/2014
RAKBANK is pleased to announce that it will be conducting a series of fixed income investor meetings in the Middle East, Asia and Europe commencing on 11 June 2014 under its USD 1 billion Euro Medium Term Note (EMTN) Programme. The National Bank of Abu Dhabi PJSC and Standard Chartered Bank will be arranging meetings on RAKBANK’s behalf. The bonds will be issued by a special purpose vehicle (SPV) RAKFUNDING Cayman Ltd. incorporated in the Cayman Islands and guaranteed by RAKBANK. The Programme will be listed on the Irish Stock Exchange. A benchmark Regulation S USD bond offering may follow subject to market conditions. FCA/ICMA stabilization applies.
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About RAKBANK
RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country’s oldest local financial institutions and today one of its fastest growing and most dynamic banks. According to The Banker's Top 100 Bank Rankings for 2013, RAKBANK is the 1st in the Arab World by Return on Assets and 5th in the Arab World by Return on Capital.
RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels.
RAKBANK Leads the Tweets
01/06/2014
RAKBANK was recently ranked the number one most followed bank in the UAE on Twitter and the 18th in the world for the first quarter of 2014 by The Financial Brand in its Power 100 List of Most Followed Banks on Twitter*.
“When we launched a Bank presence on Twitter in 2010, our goal was to keep our conversations real through two-way communication and to avoid producing another corporate monologue,” said Banali Malhotra, Head of Marketing at RAKBANK.
Today, over 30,000 people follow RAKBANK on Twitter and 120,000 on Facebook. The Bank also connects with social media users on LinkedIn, Instagram, Pinterest, Foursquare, and Youtube where published videos have received over 1 million views.
With over 400,000 active users on Twitter in the UAE and 4 million on Facebook, social media has now become a hub for all online engagement, making it an important place for organizations to connect with their customers to be part of the conversation.
With an average response time of one hour on week days on both Twitter and Facebook, the social media team at RAKBANK is always there for its followers to deliver a simply better customer experience. At RAKBANK, social media goes beyond traditional marketing communication by not only listening to customer feedback but also offering services that are aligned with the changing market trends. From safe banking tips, job opportunities, RAKBANK Deals, world currency facts, inspirational quotes, crossword puzzles and health tips, RAKBANK’s social media strategy focuses on communication that it deems relevant and useful. Apart from its official Twitter account, @RAKBANKlive on Twitter, the Bank also responds to customers’ complaints and queries via a dedicated handle, @RAKBANKhelp.
“At RAKBANK, the marketing goal is not to gain supporters solely through paid media, but through genuine interactions that help build a long lasting, valued relationship between the customer and the Bank,” affirmed Malhotra.
RAKBANK recognizes that Gamification on social media helps RAKBANK connect with customers effectively while driving meaningful engagement and better product recall. So the Bank recently launched a social media game, Click ‘n’ Connect, on Facebook to promote its Click and Collect service which helps users open a bank account online in just a few clicks. The game involved connecting four identical Click and Collect coins in a row before the opponent to win the game. The users had the option to play against computer or against a Facebook friend. The game was played more than 15,000 times by users.
*Top 100 Banks on Twitter with Most Followers via The Financial Brand Report is available on http://thefinancialbrand.com/38472/power-100-2014-q1-twitter-banks/
About RAKBANK
RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country’s oldest local financial institutions and today one of its fastest growing and most dynamic banks. According to The Banker's Top 100 Bank Rankings for 2013, RAKBANK is the 1st in the Arab World by Return on Assets and 5th in the Arab World by Return on Capital.
RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels.
RAKBANK Ups Foreign Ownership Limit
07/05/2014
RAKBANK received approval today from shareholders at its adjourned Extraordinary General Assembly Meeting (EGM) to raise its Foreign Ownership Limit (FOL) by 20 percent. Upon approval from the relevant authorities the new FOL would be 40 percent and aims to improve the liquidity available to foreign investors.
Active engagement with local and international investors has become a key focus for RAKBANK since Peter England took over as Chief Executive Officer in November 2013. “The decision to increase the limit of foreign ownership is important to us as we are currently running very close to our existing limit of 20%,” said England. “In our conjunction with regular communication with investors we are seeing extensive demand for RAKBANK stock by interested parties from across the globe. Despite a tight free float, a higher limit on foreign ownership makes additional room for international buyers and also complements the recent developments of the UAE’s stock markets to attract new foreign investments."
As of March 31 this year, the Bank's earnings per share stood at 0.2 dirhams and total shareholders' equity was approximately AED 6 billion dirhams. Its capital adequacy ratio was 27.6 percent, one of the highest among banks in the UAE.
The FOL increase becomes effective once regulatory formalities are completed.
About RAKBANK
RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country’s oldest local financial institutions and today one of its fastest growing and most dynamic banks. According to The Banker's Top 100 Bank Rankings for 2013, RAKBANK is the 1st in the Arab World by Return on Assets and 5th in the Arab World by Return on Capital.
RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels.