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RAKBANK more than doubles its quarterly Net Profit at AED 450M for Q1’23 on the back of strong income growth

Ras Al Khaimah, United Arab Emirates, 26 April 2023 – The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the first quarter of 2023 (“Q1’23”)

RAKBANK delivered a Net Profit increase of 105% for Q1 2023 driven by a robust and diversified growth on both sides of the balance sheet. This was underpinned by strong sales momentum and lower cost of funds.

  • Total Income performance was supported by a strong net interest income of AED 788.8M, up 46.0% YoY. Net interest margins increased to 4.9% against 3.8% (Q1’22) and continues to be among the highest in the Industry. Q1’23 non-interest income of AED 284.4M, up 52.5% YoY. The growth in non-interest income was driven by higher forex and derivative income.
  • Gross loans & advances at AED 38.7B, reflecting a 1.4% increase compared to 31 December 2022 on the back of a changing balance sheet mix in line with the strategic direction of the bank.
  • Customer deposits stood at AED 46.4B, an increase of 3.3% compared to 31 December 2022. The Bank has a strong Current & Saving Account (CASA) franchise with the CASA ratio of 70.5%.
  • Cost of Risk remained low due to the Bank’s diverse business mix and resilient UAE economic environment, leading to a 30.9% reduction in impairments as against Q4’22. Impaired Loan provision coverage ratio increased to 192.1% against 137.8% in Q1’22, remaining one of the strongest in the industry.

The Bank achieved balanced growth across all Business Segments:

Personal Banking:

  • Gross loans & advances at AED 19.1B are up 1% YoY and +2% against FY’22 driven by the sales momentum across products with balance sheet for Auto loans +6%, Mortgages +5% and Personal loans +0.3%.
  • Customer deposits of AED 16.7B, are up 22% YoY and +6% during the quarter driven by higher Term deposits +30% & CASA +0.3%.
  • Q1’23 income supported by net interest income of AED 229M, +19.0% YoY and non-interest income of AED 123M, +1% YoY.

Business Banking:

  • Gross loans & advances of AED 9.3B, are up 12% YoY and +3% against FY’22 mainly through higher volumes for Rak business loans +5%.
  • Customer deposits of AED 19.7B, are up 14% YoY and +7% during the quarter driven by higher CASA deposits +7% & Term deposits +2.7%.
  • Q1’23 income supported by net interest income of AED 337M, +57.0% YoY and non-interest income of AED 77M +6% YoY.

   Wholesale Banking & Others:

  • Gross assets (including lending to banks) of AED 19.8B, are up 13% YoY and +1% against FY’22 mainly driven by higher FI bank lending +2%.
  • Customer deposits of AED 9.9B, are up 13% YoY and +7% during the quarter.
  • Q1’23 income supported by net interest income of AED 224M, +68.0% YoY and non-interest income of AED 84M against a loss of 8Mn in Q1’22.

RAKBANK delivered strong shareholder returns with ROE of 19.4% and ROA of 2.8%, and remained highly liquid and well capitalized. 

  • The Bank’s Capital Adequacy Ratio (CAR) was at 16.8%.
  • The regulatory eligible liquid asset ratio at 14.8%, compared to 12.8% as at 31 December 2022, and the advances to stable resources ratio stood comfortably at 81.8% compared to 79.7% at the end of 2022.
  • Cost-income ratio improved to 36.2% driven by strong cost discipline, automation and digitization. 
  • The Bank’s non-performing loans ratio improved to 3.0% against 3.6% in Q1’22.

CEORaheel Ahmed, CEO of RAKBANK said, “Delivering on our multi-year strategy, we accelerated our growth and achieved a record net profit of AED 450M and a record total income of AED 1,073M for the quarter. In addition to this impressive growth, I am very pleased with the progress we are making in laying the foundation for sustainable growth.

In diversifying our income sources, we achieved robust growth on both sides of the balance sheet, across interest and fee incomes, and in all our segments. In terms of building deeper customer relationships, we achieved strong growth in digitally active customers with digital transactions growing by 12% YoY. Our high CASA ratio in our deposit base of 70.5% despite the high interest rate environment is a testament of the strong relationships we built with our customers and clients. We enhanced our operational leverage and improved our cost-income ratio through our strong cost discipline, and our cost of risk reduced via diversifying our business mix. The Bank remains well capitalized and liquid with a Capital Adequacy Ratio of 16.8% and an Eligible Liquid Asset Ratio of 14.8%. As a result of our progress, we achieved an ROE of 19.4% and ROA of 2.8%.

Being one of the largest SME banks in the UAE, we continue to back entrepreneurs and start-ups by opening more than 4,000 business accounts in Q1 2023, of which 1,600 accounts were opened for start-ups. Similarly, we disbursed AED 571M in business loans, out of which AED 394M were disbursed for new business loan customers. 

As we grow, we are investing heavily in technology while maintaining cost discipline to digitize customer journeys, upgrade core data architecture, and revamp compliance and risk infrastructure. This investment will enable RAKBANK’s journey to provide a superior customer experience that is characterized by its hyper-personalization and relevance. The recent launch of our first fully digital accounts opening capability with straight-through processing is a good example of how we are digitizing our customer journeys.

Continuing from Q4 2022, we are focusing on expanding strategic hires to lead our growth, and we remain committed to and supporting the career aspirations and ambitions of our colleagues. Special attention is drawn to developing our Emirati talents as we align ourselves to the UAE leadership’s mission of growing and nurturing local talent.   

As one of the nation’s leading financial institutions, RAKBANK recognizes our responsibility to support the ‘UAE Net Zero by 2050’ initiative. The team is actively engaged with RAK Government on COP28 submissions, working on financial inclusion and reducing emissions. We continue to support financial inclusion and accelerate digital remittances through our wages protection system partner and the United Nations Capital Development Fund.

Lastly, our outlook for FY 2023 remains positive yet cautious, with the buoyant UAE economy and uncertain global macro set up as backdrops. While we closely monitor the headwinds of inflation, rising interest rates, geopolitical developments, we will continue building on the Bank’s strengths and remain committed to delivering on our strategy.”
 

Financial Highlights for Q1 2023

 

 

 

 

 

Profitability Growth supported by Income momentum and improvement in

Provisions

  • Net Profit increased by 104.6% to 450.3M (vs Q1’22 104.6% and Q4’22 58.2%).
  • Net Interest Income and Income from Islamic products net of distribution to depositors increased by 46.0% to AED 788.8M (vs Q4’22 7.6%).
  • Interest income from conventional loans and investments increased by 79.7%, while interest costs on conventional deposits and borrowings increased by 300.5%. Net income from Sharia-compliant Islamic financing increased by 7.8%.
  • Non-Interest Income increased by 52.5% to AED 284.8M (vs Q1’22 52.5% and Q4’22 8.7%), primarily due to forex and derivative income booked in Q1 2023.
  • Total Income increased by 47.6% (vs Q4’22 7.9%), benefiting from the balance sheet growth momentum.
  • Operating Expenditure was AED 389.0M (vs Q1’22 AED 372.4M), reflecting a 4.5% increase compared to the same period in 2022, and a 4.7% increase compared to Q4 2022, due to the Bank's growth investments.
  • Operating Expenses increased mainly due to higher staff costs, card expenses, and other operating expenses. However, these were partly offset by lower IT expenses, occupancy costs, depreciation, and communication expenses.
  • Cost-to-Income ratio for the bank decreased to 36.2% (vs Q1’22 51.2% and Q4’22 37.3%).
  • Provision for credit loss increased by 73.9% to AED 233.9M for Q1 2023 compared to Q1 2022, due to prudent precautionary measures in anticipation of expected developments. However, compared to Q4 2022, the provision for credit loss decreased by 30.9% for Q1 2023.
  • Net Credit Losses to average loans and advances closed at 2.5% (vs Q4’22 3.4%).

Balance Sheet crosses AED 68.9B with a strong uptick across all customer segments

  • Balance sheet crosses AED 68.9B as the Total Assets increased by AED 2.5B compared to 31 December 2022 reflecting a growth of 3.8%, with an increase in Cash/Central Bank balances by AED 929.2M, Investments by AED 805.8M, Gross Loans and Advances by AED 551.9M and Lending to Banks by AED 480.3M as compared to 31 December 2022.
  • Business Banking portfolio increased by AED 264M, Retail Banking by AED 286.2M and Wholesale Banking segment (including bank lending) increased by AED 211M compared to 31 December 2022.
  • Business Banking recorded 2.9% growth compared to 31 December 2022 with Business Loans growing by 5.3% and an increase of 1.5% on the Trade and Working Capital Loans portfolio.
  • Retail Banking reflected a growth of AED 286.2 M supported by a strong sales momentum across products with Mortgages growing by 4.8% and Auto Loans by 6.4%.
  • Non-performing Loans and Advances to Gross Loans and Advances ratio remained same at 3.0% as at 31 March 2023 compared to 31 December 2022.

Robust Growth in Customer Deposits as we continue to be the main bank for most of our customers

  • Q1’23 Customer deposits increased by 3.3% compared to 31 December 2022, mainly due to an increase of AED 1,089.5M in CASA deposits and AED 404.7M in time deposits, endorsing the trust our customers place in RAKBANK’s solutions and services. RAKBANK has built a strong CASA franchise with a CASA ratio of 70.5 % as at 31 March 2023.

Strong Capital and Liquidity position

  • The Bank’s Capital and Liquidity ratios remained strong.
  • With a Total Capital Ratio as per Basel III, after the application of prudential filter, at 16.8% compared to 16.4% at the end of 2022.
  • The regulatory eligible liquid asset ratio at the end of 31 March 2023 at 14.8%, compared to 12.8% as at 31 December 2022, and the advances to stable resources ratio stood comfortably at 81.8% compared to 79.7% at the end of 2022.

Healthy Cash Flows from operating activities

  • Cash and cash equivalent as at 31 March 2023 were AED 4.7B compared to AED 4.3B as at 31 December 2022.
  • Net cash generated from operating activities was AED 1.2B, AED 819.8M was used in investing activities and AED 4.7M used in financing activities.

Impact of Projected Capital Expenditure and developments

  • The Group incurred AED 37.3M in capital expenditure in Q1 2023.
  • RAKBANK will carry on advancing its investment towards customer-centric technology transformation.

Ratings

RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown in the table below. This rating reflects the institutional strength of the Bank that is backed up by trust and transparency in financial reporting.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

  • Q1 2022 net Profit up by AED 106.1 million (93.1%) compared to Q1 2021
  • Total Assets increased by AED 2.3 billion year-to-date
  • Gross Loans and Advances amounted to AED 35.8 billion as of 31st March 2022, an increase of 4.7% year-to-date
  • Customer Deposits increased by AED 811 million year-to-date

United Arab Emirates, 26 April, 2022: The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 220.1 million for Q1 2022, an increase of 93.1% compared to the first quarter of 2021. Total Income of AED 726.9 million, decreased by 8.3% compared to the fourth quarter of 2021. As at 31 March 2022, Total Assets stood at AED 58.6 billion, increasing by 10.1% year-on-year and 4.1% year-to-date.

 

RAKBANK CEO, Raheel Ahmed, commented:

“Our diversification strategy is working well.  Q1 2022 net profit at AED 220.1 million is 93.1% higher compared to Q1 2021. We have delivered this very significant increase in net profit by improving our return on equity by 460 basis points to 10.5%, improving our returns on assets to 1.6%, whilst maintaining one of the highest impaired loan coverage ratio in the industry at 138%. We saw a reduction in our non-interest income driven by lower trading forex & derivatives & Investment Incomes. However, we expect that this will not be repeated in subsequent quarters. We have a strong balance sheet momentum across all lines of businesses as is evident from the 9.3% year-on-year growth in gross loans and advances. We have seen over a 20% year-on-year increase in digital engagement with customers & have seen double digit growth in both customer spends & customer payments versus Q1 2021. Continuing our journey of innovation, we launched Digital Lending for SMEs & further enhanced our SMEsouk portal - www.smesouk.com - the one stop digital platform for businesses in the UAE.”

 

Q1 2022 highlights

  • Net Profit increased by AED 106.1 million compared to Q1 2021
  • Net Interest Income increased by AED 8.7 million compared to Q1 2021
  • Total Assets increased by 10.1% compared to Q1 2021
  • Annualised Return on Assets stood at 1.6% and Return on Average Equity at 10.5%

Performance review

Total Assets increased year-to-date by AED 2.3 billion which translates into a growth of 4.1%, due to an increase in Gross Loans and Advances which increased by AED 1.6 billion, Lending to Banks which increased by AED 751 million, offset by a reduction in Cash and Central Bank balances by AED 128 million. Total Assets increased by AED 5.4 billion to AED 58.6 billion compared to 31 March 2021 mainly due to an increase of AED 3.1 billion in Gross Loans and Advances, AED 1.3 billion Due from Banks and AED 850 million in Investments.

Provision for Credit Loss decreased by AED 222.5 million compared to Q1 2021 and by AED 63.2 million compared to Q4 2021. Non-Performing Loans and Advances to Gross Loans and Advances ratio was 3.7% as at 31 March 2022, Net Credit Losses to average Loans and Advances ratio closed at 1.6% compared to 4.5% as at the end of the first quarter of 2021.

On a year-on-year basis, Total Operating Income declined by AED 74.0 million to AED 726.9 million. The Net Interest Income and Net Income from Shariah-Compliant Islamic Financing increased by 1.6% year-on-year largely due to the increase in assets. However, the Non-Interest Income decreased by AED 82.7 million to AED 186.5 million, mainly due to a year-on-year decrease in FOREX and Derivative Income of AED 40.8 million, AED 29.3 million in Investment Income and AED 13.6 million in Other Operating Income. This was partly offset by an increase of AED 2.1 million in Net Insurance Underwriting Profit. The reduction was largely due to one off trading losses in the proprietary book due to a sudden increase in interest rates in Quarter 1 impacting the bond book and certain derivative positions. This was further exacerbated by devaluation in foreign exchange rates in certain currencies due to macroeconomic and geopolitical reasons.

The Bank’s total Capital Ratio as per Basel III, after the application of the prudential filter was 16.5% compared to 17.0% at the end of the previous year. The regulatory eligible Liquid Asset Ratio at the end of the quarter was 11.9%, compared to 11.6% as at 31 December 2021, and Advances to Stable Resources ratio stood comfortably at 87.0% compared to 82.9% at the end of 2021.

 

Q2 2022 outlook

“The impact of rising interest environment, Russia & Ukraine conflict & increase in inflation will have to be managed carefully. There is also intense competition for talent globally. However the UAE economy continues to grow strongly & there has been a significant improvement in both business & consumer sentiment. At RAKBANK we will continue to rapidly accelerate our focus on delivering personalized & convenient financials solutions for our clients whilst providing brilliant customer experience at all touch points.” said Raheel Ahmed. “We strongly believe that whilst continuing to build secure digital solutions is critical, so is ensuring that our colleagues are always there to support our customers, when needed. We are investing in both to deliver ‘Simply Better’ banking.”

 

Financial Highlights

Increase in Net Profit by over 93%

Income Statement Highlights

  Quarter Results Variance
(AED Mn) Q1’22 Q4’21 Q1’21 FY ‘21 FY `20
Net Interest Income and net income from Islamic financing 540.4 547.2 531.7 (1.2%) 1.6%
Non-Interest Income 186.5 245.3 269.2 (24.0%) (30.7%)
Total Income 726.9 792.4 800.9 (8.3%) (9.2%)
Operating Expenditures (372.4) (371.1) (330.0) (0.3%) (12.9%)
Operating Profit Before Provisions for Impairment 354.6 421.3 470.9 (15.8%) (24.7%)
Provisions for Impairment (134.5) (197.7) (354.0) 32.0% 62.3%
Net Profit 220.1 223.6 113.9 (1.6%) 93.1%

Double Digit Increase in Total Assets

  Results as at Variance
(AED Bn) Mar’22 Dec'21 Mar'21 Mar'22 vs Dec'21 Mar'22 vs Mar'21
Total Assets 58.6 56.3 53.2 4.1% 10.1%
Gross Loans & Advances 35.8 34.2 32.7 4.7% 9.3%
Deposits 38.5 37.6 36.5 2.2% 5.4%

Marked improvement in Return on Equity & Return on Assets

  Results Variance
Percentage Mar’21 Dec'21 Mar'21 Mar'22 vs Dec'21 Mar'22 vs Mar'21
Return on Equity 10.5% 9.5% 5.9% 1.0% 4.6%
Return on Assets 1.6% 1.4% 0.9% 0.2% 0.7%
Net Interest Margin 3.9%

4.1%

 4.2% (0.2%) (0.3%)
Cost to Income 51.22% 43.2% 41.2% (8.0%) (10.0%)
Impaired Loan Ratio 3.7% 4.1% 5.4% 0.4% 1.7%
Impaired Loan Coverage Ratio 137.8% 133.7% 125.7% 4.1% 12.1%
Basel III Total Capital Adequacy Ratio  16.5% 17.0% 18.1% (0.5%) (1.6%)

*Annualized
**After application of Prudential Filter  
 

Lending in Wholesale Banking increased by AED 1.3 billion, Retail Banking segment increased by AED 104 million and Business Banking lending increased by AED 238 million compared to 31 December 2021. 

Customer deposits increased by AED 811 million to AED 38.5 billion compared to 31 December 2021 mainly due to increase of AED 322 million in time deposits and AED 489 million in CASA accounts.

RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown clearly in the table below. Fitch Ratings recently rated RAKBANK at 'BBB+', with a stable outlook. This rating reflects the institutional strength of the Bank that is backed up by trust and transparency in financial reporting.
 

Rating Agency Last Update Deposits Outlook
Moody’s October 2021 Baa1 / P-2 Stable
Fitch April 2022 BBB+ / F2 Stable
Capital Intelligence August 2021 A- / A2 Stable

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). 

Furthermore, RAKBANK believes that long-term financial growth requires a thorough integration of sustainability with its core business strategy. We intend to consistently improve Environmental, Social and Governance (ESG) practices throughout RAKBANK’s operations. The Bank’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). For more details on the Bank’s ESG Framework and Approach the Bank urges the public to read the RAKBANK 2021 Annual Integrated Report.

 

Fitch Ratings - Dubai - 13 April 2022: Fitch Ratings has affirmed The National Bank of Ras Al-Khaimah (P.S.C)'s (RAKBANK) Long-Term Issuer Default Rating (IDR) at 'BBB+' with a Stable Outlook and Viability Rating (VR) at 'bb'.

For more information, Click here

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that once the Bank receives the Securities and Commodities Authority instructions, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

  • RAKBANK’s Full-Year 2021 Net Profit increased by AED 252.9 million, a 50% increase over 2020
  • The Bank’s Total Assets increased by 6.7% to AED 56.3 billion during 2021
  • Gross Loans and Advances amounted to AED 34.2 billion as of 31st December 2021, a year-on-year increase of 6.1%
  • The Bank’s Non-Interest Income grew by 2.3% year-on-year

United Arab Emirates, 01 February, 2022: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 758.3 million for the Full-Year 2021, resulting in an increase of AED 252.9 million when compared to the previous year. The Bank’s Total Assets amounted to AED 56.3 billion, increasing by 6.7% over 2020. In addition, the Gross Loans and Advances closed at AED 34.2 billion, a year-on-year hike of 6.1%. 
Similarly, Customer Deposits grew by 1.9% and this is due to the growth in Time Deposits by 7.4% compared to the previous year, amounting to AED 660.1 million. Similarly, the Return on Average Assets Ratio closed the year at 1.4% compared to 0.9% for the previous year and Return on Average Equity was 9.5%, compared to 6.5% in 2020.  
The Board of Directors recommended distribution of a cash dividend of 22.5 fils per share for the shareholders’ consideration and approval at the Annual General Meeting (AGM).

RAKBANK CEO, Peter England, commented: “RAKBANK had a strong finish to 2021, driving Net Profit for the year up to AED 758.3 million. We continue to transform our Bank with a focus on simplification, digitalization and building a culture of excellence. Throughout these past years, we have seen that RAKBANK’s resilience and nimbleness enabled us to offer sound support to our customers throughout the pandemic, with the help of the country’s regulators. Income growth has been a challenge in 2021 as a result of very little business activity during 2020. However, we saw this gradually turn around as the year progressed and the business momentum in the second half of 2021 reflected positively on the Bank’s performance. On Asset Quality, we have seen a significant improvement and our Provisions for 2021 are the lowest they have been in the last 6 years, indicating a strong rebound in the economy and the success of our business diversification strategy that we commenced in 2015.”

FY 2021 highlights 

  • Net Profit is up 50.0% compared to the previous year.
  • Year-on-year increase in the Annualized Return on Assets amounting to 1.4% and Return on Equity to 9.5% respectively for the full year 2021. 
  • Non-performing Loans and Advances to Gross Loans and Advances Ratio improved to 4.1% as at 31 December 2021.  
  • Provision Charges for Credit Loss decreased by 35.3% year-on-year.

Performance review

Total Income for the financial year ended 31 December 2021 amounted to AED 3.2 billion, which decreased by 9.4% as compared to the same period of the previous year. Net Interest Income and Net Income from Islamic Finance stood at AED 2.2 billion for the year 2021, decreasing by 14.1% year-on-year. Non-Interest Income increased by AED 23.7 million year-on-year to AED 1.1 billion, mainly due to an increase of AED 54.1 million in Net Fees and Commission Income. Operating Expenses remained the same year-on-year and the Cost to Income Ratio closed at 43.2% for the year. 

Gross Loans & Advances increased by AED 2.0 billion to AED 34.2 billion, which is a rise of 6.1% year-on-year resulting in an increase in the Bank’s Total Assets by 6.7% to AED 56.3 billion compared to 31 December 2020. Whereas, Customer Deposits grew by AED 702.8 million to AED 37.6 billion, a 1.9% increase compared to 31 December 2020. 

Asset quality
Provision Charges for Credit Loss decreased by AED 586.6 million (FY 2021 Vs FY 2020), which is a 35.3% decrease year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances Ratio closed at 4.1% for the Full-Year 2021 compared to 5.2% as at 31 December 2020. RAKBANK is well provisioned against Loan Losses with a Loan Loss Coverage Ratio of 133.7%, excluding mortgaged properties and other realizable asset collateral available against loans. 

Capitalization and liquidity
The Bank’s Total Capital Adequacy Ratio as per the Central Bank of the UAE regulations and as per Basel III stood at 17.0% at the end of December 2021. The Common Equity Tier 1 ratio of the Bank stood at 15.9%. The Loans to Stable Resources Ratio LSRR as at 31 December 2021, stood at 82.9% compared to 80.7% at the end of 2020, which is significantly lower than the maximum limit of 110%. The regulatory eligible Liquid Asset Ratio of the Group stood at 11.6% at the end of December 2021 compared to 14.5% at the end of 2020, which is well above the minimum requirement and reflects a healthy liquidity position. 

RAKBANK’s Chairman, H.E. Mohamed Omran Alshamsi, commented: “RAKBANK’s financial performance this past year yielded tangible results despite the operating environment of 2021. Looking back, during the first half of the year, the UAE economy was recovering from the impacts of COVID-19. However, the second half resulted in a complete turnaround, and this applied to RAKBANK as well. Just as the UAE economy continued to swiftly rebound, RAKBANK has demonstrated a similar form of resilience in 2021 underpinned by the Bank’s diversification strategy. It has become evident that we are well positioned for strong and sustainable growth in the years ahead. Our core business is primed to continue its steady growth on the back of rising Retail and SME activities. Additionally, throughout this past year, RAKBANK focused on investments specifically in digitising the customer journey as we believe that it will drive efficiency and unlock access to attractive new segments. Lastly, I would like to announce that as of February 2nd 2022, Mr Raheel Ahmed will officially assume his responsibilities as the Chief Executive Officer of RAKBANK, as his designated handover period is now complete.” 
 

Financial highlights

Income statement highlights

  Quarter Results Full Year Results
(AED Mn) Q4’21 Q4’20 Variance% FY ‘21 FY `20 Variance%
Net Interest Income and net income from Islamic financing 547.2 561.8 (2.6%) 2,168.4 2,525.6 (14.1%)
Non-Interest Income 245.3 245.8 (0.2%) 1,062.1 1,038.4 2.3%
Total Income 792.4 807.6 (1.9%) 3,230.5 3,564.0 (9.4%)
Operating Expenditures (371.1) (363.7) (2.0%) (1,395.6) (1,395.3) 0.0%
Operating Profit Before Provisions for Impairment 421.3 443.9 (5.1%) 1,835.0 2,168.7 (15.4%)
Provisions for Impairment (197.7) (377.1) 47.6% (1,076.7) (1,663.3) 35.3%
Net Profit 223.6 66.7 235.1% 758.3 505.4 50.0%

Balance sheet highlights

  Results as at Variance
(AED Bn) Dec’21 Sep’21 Dec’20 Quarter-on-Quarter Year-on-Year
Total Assets 56.3 54.5 52.8 3.3% 6.7%
Gross Loans & Advances 34.2 33.5 32.2 2.1% 6.1%
Deposits 37.6 37.0 36.9 1.8% 1.9%

Key ratios highlights

  Results Variance
Percentage Dec’21 Sep’21 Dec’20 Quarter- on -Quarter Year-on-Year
Return on Equity 9.5% 9.0% 6.5% 0.5% 3.0%
Return on Assets 1.4% 1.4% 0.9% 0.0% 0.5%
Net Interest Margin 4.1% 4.1% 4.6% 0.0% (0.5%)
Cost to Income 43.2% 42.0% 39.2% (1.2%) (4.0%)
Impaired Loan Ratio 4.1% 4.5% 5.2% 0.4% 1.1%
Impaired Loan Coverage Ratio 133.7% 134.3% 129.4% (0.6%) 4.3%
Basel III Total Capital Adequacy Ratio  17.0% 17.8% 18.6% (0.8%) (1.6%)

The Wholesale Banking and Financial Institutions lending was up by AED 1.5 billion compared to 2020 and Personal Banking’s Loan Portfolio also increased by AED 709.9 million. However, the Business Banking Loan Portfolio declined by AED 262.3 million compared to the previous year.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:
 

Rating Agency Last Update Deposits Outlook
Moody’s October 2021 Baa1 / P-2 Stable
Fitch December 2021 BBB+ / F2 Stable
Capital Intelligence August 2021 A- / A2 Stable

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). 

 

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

United Arab Emirates, 29 November 2021: RAKBANK celebrated the 50th UAE National Day, the Golden Jubilee, at its Ras Al Khaimah headquarters and across the Bank’s 27 branches. Senior management and staff from different nationalities and backgrounds, all gathered to commemorate the 50th National Day by celebrating the UAE’s history, culture, and heritage.

The Golden Jubilee ceremony began with the UAE national anthem, followed by a speech of RAKBANK’s CEO, Peter England, who praised the remarkable journey the UAE has made over the last 50 years and the transformative change that lies ahead in the next 50 years.

The celebration was also marked by a march performed by the Ras Al Khaimah police to commemorate the nation’s spirit of the union, and ended with the Emirati youth standing alongside one another for the traditional Emirati dance, Harbiya.

Furthermore, to honour the UAE’s 50th anniversary RAKBANK launched an exclusive and limited-edition Elite Platinum Debit Cards that offers access to select benefits through elite customers RAKBANK Accounts.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

RAKBANK marked today the UAE Flag Day with a flag hoisting ceremony at its headquarters in Ras Al Khaimah in the presence of few members of the Bank’s management and employees. As a long standing player in the UAE community, the ceremony was part of RAKBANK’s commitment to commemorate the UAE’s National Flag Day.

Limassol, October 28, 2021 -- Moody's Investors Service ("Moody's") has today affirmed the long-term ratings of eight United Arab Emirates (UAE)-based banks: Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai PSC (CBD), Dubai Islamic Bank PJSC (DIB), HSBC Bank Middle East Limited (HBME), MashreqBank psc (Mashreq), National Bank of Fujairah PJSC (NBF) and The National Bank of Ras-Al-Khaimah (P.S.C.) (RAK). Moody's has also affirmed the Baseline Credit Assessments (BCA) and Adjusted BCAs of the eight banks.

At the same time, Moody's has changed the outlook to stable from negative on the long-term deposit and issuer ratings -- where applicable - of the eight banks.

Please click here to view the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

For more information, click here

  • Net Profit surged by 73.2% compared to the third quarter of 2020; up by 21.9% year-to-date
  • Gross loans and advances up by 2.7% to AED 33.5 billion compared with the third quarter of 2020; up by 4.0% year-to-date
  • Total deposits stood at AED 37.0 billion, up by 8.1% year-on-year
  • Non-interest income up by AED 24.1 million compared to same period last year
  • Provisions for the nine months of 2021 dropped by 31.7% year-on-year

United Arab Emirates, 26 October 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 534.7 million for the nine-month period ended 30 September 2021, compared to the net profit of AED 438.6 million for the same period last year. The Total Assets equated to AED 54.5 billion as at 30 September 2021, increasing by 4.1% year-on-year and by 3.3% year-to-date.   

There are several factors that led to the spike in the Net Profit throughout the year, which include a reduction in the Provisions for Credit Loss along with an increase in Non-Interest Income to AED 258.9 million on the back of a growth in the Net Fee and Commission Income by AED 14.0 million as well as an increase in Other Operating Income by AED 17.5 million. 

RAKBANK CEO, Peter England, commented: “We have seen a continual improvement in asset quality at RAKBANK especially in the last 2 quarters, which has led to a significant improvement in profitability. We have already surpassed our full year 2020 profit numbers in the first 3 quarters of this year. The improvement in asset quality has come about due to the change of mix in our loan book, which we have been gradually implementing over the last few years, and also the significant improvement in the macro-economic environment due to the exemplary handling of the COVID-19 pandemic by the Leadership of the UAE. We see these very positive trends continuing into the 4th quarter which will bode well for a strong start to 2022.”  

Performance review YTD 2021
Total Income decreased by 11.5% to AED 2,438.1 million, compared to the same period last year, mainly due to a decrease in Net Interest Income and Net Income from Islamic financing by AED 342.5 million on account of the lower mix of high yielding assets. This was partially offset by higher Non-Interest Income of AED 24.1 million.

Net Interest Income and Net Income from Shariah-Compliant Islamic financing weakened by 17.4% year-on-year to AED 1,621.3 million and the Non-Interest Income increased by 3.0% to AED 816.8 million, as a result of the year-on-year increase of AED 34.0 million in Net Fees and Commission Income, AED 14.0 million in Investment Income and AED 19.2 million in Other Operating Income. This was partially offset by lower Forex and Derivative Income by AED 32.0 million and lower Gross Insurance Underwriting Profit by AED 11.1 million.

Asset 
Total Assets increased by AED 1.7 billion or 3.3% year to date and by AED 2.2 billion year-on-year mainly due to the increase in Investment Securities by AED 2.1 billion and in gross Customer Loans & Advances increased by AED 884.4 million. 

Asset quality
Provisions for Credit Loss decreased by AED 407.2 million year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 4.5% compared to 5.2% as at 31 December 2020. Additionally, the annualised Net Credit Losses to Average Loans and Advances ratio closed at 3.6% compared to 4.9% year-to-date through September 2020. 

Capitalization and liquidity
The Bank’s Capital Adequacy ratio as per Basel III was 17.8% compared to 18.6% as at the end of the previous year. The Common Equity Tier 1 ratio of the Bank stood at 16.7%. The regulatory eligible Liquid Asset ratio was 10.4% as at the end of September 2021. The Advances to Stable Resources ratio stood comfortably at 83.9%.

“RAKBANK continues to focus very heavily on its digital transformation and we are increasingly focused on delivering simpler and more convenient banking solutions. We are seeing great traction on our ‘Skiply’ app, which is now being used by over 100,000 families in the UAE access 180 educational institutions who don’t even need to be a RAKBANK customer to benefit from the proposition.” said Peter England. “We have also seen great success in our partnership with YAP that has developed a unique app based banking solution that allows new customers to open and operate RAKBANK accounts and benefit from a range of products and services provided by YAP and RAKBANK. This focus on digitalisation, innovation and partnerships will continue to grow and develop strongly in 2022 and beyond.”  

Financial highlights

Income statement highlights

(AED Mn) Q3’21 Q2’21 Q3’20 YTD’21 YTD’20
Net Interest Income and net income from Islamic financing 546.5 543.0 601.1 1,621.3 1,963.7
Non-Interest Income 258.9 288.8 251.4 816.8 792.7
Total Income 805.4 831.8 852.5 2,438.1 2,756.4
Operating Expenditures (351.4) (343.1) (325.7) (1,024.5) (1,031.6)
Operating Profit Before Provisions for Impairment 454.0 488.7 526.8 1,413.6 1,724.8
Provisions for Impairment (225.3) (296.6) (394.8) (878.9) (1,286.2)
Net Profit 228.7 192.1 132.0 534.7 438.6

Balance sheet highlights

(AED Bn) Sep’21 Jun’21 Dec’20 Sep’20
Total Assets 54.5 54.3 52.8 52.3
Gross Loans & Advances 33.5 33.2 32.2 32.6
Deposits 37.0 37.0 36.9 34.2

Key ratios highlights

Percentage Sep’21 Jun’21 Dec’20 Sep’20
Return on Equity 9.0%* 7.8%* 6.5% 7.6%*
Return on Assets 1.4%* 1.2%* 0.9% 1.1%*
Net Interest Margin 4.1%* 4.2%* 4.6% 4.7%*
Cost to Income 42.0% 41.2% 39.2% 37.4%
Impaired Loan Ratio 4.5% 5.1% 5.2% 5.1%
Impaired Loan Coverage Ratio 134.3% 127.7% 129.4% 131.2%
Total Capital Adequacy Ratio Basel III ** 17.8% 17.8% 18.6% 19.4%

 *Annualised
**After application of Prudential Filter  

Total Assets increased by AED 1.7 billion to AED 54.5 billion compared to 31 December 2020, mainly due to an increase in Gross Loans and Advances by AED 1.3 billion, Investments by AED 1.7 billion and Due from Banks by AED 1.3 billion offset by a reduction in Cash and Balances from Central Bank of the UAE by AED 2.2 billion. The increase in Loans and Advances compared to 31 December 2020 is due to an increase of AED 568.6 million in Wholesale Banking loans, increase of AED 940.9 million in Retail Banking loans offset by a reduction of AED 234.6 million in Business Banking loans. 

Customer Deposits increased by AED 43.5 million to AED 37.0 billion compared to 31 December 2020, mainly due to an increase in Time Deposits of AED 1,026.5 million. This was partly offset by a decrease of AED 982.9 million in CASA accounts.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:
 

Rating Agency Last Update Deposits Outlook
Moody’s July 2021 Baa1 / P-2 Negative
Fitch May 2021 BBB+ / F2 Stable
Capital Intelligence August 2021 A- / A2 Stable

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). 

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

RAKBANK Reports AED 306.0 million in Net Profit for the First Half of 2021

  • Total Income for Q2 2021 increased by 3.9% compared to Q1 2021
  • Non-interest income increased by 3.1% to AED 557.9 million compared to H1 2020
  • Gross Loans and Advances amounted to AED 33.2 billion, an improvement of 3.1% year-to-date
  • Non-Performing Loans ratio improved to 5.1% compared with March 2021 and December 2020

United Arab Emirates, 27th July, 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 306.0 million for the first half of 2021. The Net Profit for the second quarter of 2021 amounted to AED 192.1 million, resulting in a 25.4% increase compared to the second quarter of 2020. This positive trajectory was also reflected in the Bank’s Total Income for the second quarter of 2021, amounting to AED 831.8 million, which resulted in an increase of 3.9% compared to the first quarter of 2021. The Total Income for the first half of 2021 stood at AED 1.6 billion. As of 30 June 2021, Total Assets amounted to AED 54.3 billion up by 2.9% year-to-date and an increase of 2.0% compared to the first quarter of 2021.

RAKBANK CEO, Peter England, commented: "Q2 2021 has been a very strong quarter for us. We have seen Total Income commence growth again after a number of quarters of decline since the beginning of the pandemic. This is a crucial turning point for us as we see growth in our loan book and customer deposit and that is a very positive sign. Additionally, our provisions for this quarter are the lowest they have been for many years as we see the re-balancing of our portfolio, which we have undertaken over the years, bear very positive results. It also demonstrates the significant rebound in the UAE economy and a strong return of consumer confidence that we have witnessed during the first half of this year.”

Performance highlights: 

  • Q2 2021 Net Profit of AED 192.1 million is up by 68.5% compared to Q1 2021
  • H1 2021 Operating expenditures reduced by 4.7% year-on-year
  • Gross Loans & Advances increased by 3.1% year-to-date
  • Total Deposits at AED 37.0 billion, up by 5.6% year-on-year
  • Annualised Return on Assets and Return on Average Equity stood at 1.2% and 7.8% respectively 

Performance review

Total Income for the first half of 2021 decreased by 14.2% to AED 1,632.7 million as compared to the same period of the previous year. This is mainly due to a decrease in Net Interest Income and Net Income from Islamic products by AED 287.9 million that was partially offset by an increase of AED 16.7 million in Non-Interest Income. Non-interest income increased by 3.1% to AED 557.9 million because of the year-on-year increase of AED 20.0 million in net fees and commission income and AED 28.0 million in Investment income, which was partially offset by decline of AED 23.1 million in forex and derivative income and AED 10.0 million in Gross insurance underwriting profit.

Total Income for Q2 2021 increased by 3.9% as compared to Q1 2021, mainly due to a boost in Net Interest Income and Net Income from Islamic products by AED 11.3 million as well as a rise of AED 19.6 million in Non-Interest Income. The increase in Net Interest Income and Net Income from Islamic products is due to the increase in loans and advances, due from banks and investments. Non-interest income grew mainly due to an increase of AED 8.1 million in net fees and commission income, AED 22.9 million in forex and derivative income, AED 10.0 million in Gross insurance underwriting profit offset by a reduction of AED 8.7 million in Investment Income and AED 12.6 million in Other Income.

Assets

Total Assets increased by AED 1.5 billion to AED 54.3 billion compared to 31 December 2020 with major growth in loans and advances by AED 1.0 billion, investments up by AED 949 million and bank placements is up by AED 2.3 billion offset by a reduction in excess funds parked with the Central Bank of the UAE.

Asset quality

Provisions for credit loss for the quarter decreased by AED 114.4 million compared to Q2 2020 and AED 237.8 million for H1 2021 compared to H1 2020 largely due to lower IFRS 9 provisions across most products and segments. Provisions for credit loss were lower by AED 60.4 million in Q2 2021 compared to Q1 2021. Non-performing Loans and Advances to Gross Loans and Advances ratio improved to 5.1% compared to 5.4% as at 31 March 2021 and 5.2% as at 31 December 2020. The Bank is well provisioned against loan losses with a loan loss coverage ratio of 127.7%, which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans.

Capitalization and liquidity

The Bank’s total Capital Ratio as per Basel III, after the application of the prudential filter was 17.8% compared to 18.6% at the end of the previous year. The regulatory eligible liquid asset ratio at the end of the quarter was 9.6%, and advances to stable resources ratio stood comfortably at 83.7% compared to 80.6% at the end of 2020.

H2 2021 outlook

“Our strong Q2 result marks the beginning of a turnaround for RAKBANK after a very challenging 12 months when the pandemic commenced in March last year” said Peter England. “The entire team and the Board have worked tirelessly to safeguard the Bank’s franchise value and help our customers through challenging times and we are very encouraged with the signs we are seeing both for RAKBANK and the broader UAE economy going forward. We expect to see continual improvement in the coming quarters with sustained income growth, lower provisions and sound cost control. We also continue to win accolades for our customer service and will continue our focus on new digital innovation in all areas of our business” added England.

Financial highlights

Income statement highlights

(AED Mn) Q2' 21 Q1' 21 Q2' 20 H1 21 H1 20
Net Interest Income and net income from Islamic financing 543.0 531.7 666.5 1,074.8 1.362.7
Non-Interest Income 288.8 269.2 236.2 557.9 541.3
Total Income 831.8 800.9 902.8 1632.7 1903.9
Operating Expenditures (343.1) (330.0) (338.7) (673.1) (705.9)
Operating Profit Before Provisions for Impairment 488.7 470.9 564.1 959.6 1,198.0
Provisions for impairment (296.6) (357.0) (411.0) (653.6) (891.4)
Net profit 192.1 113.9 153.1 306.0 306.6

Balance sheet highlights

(AED Bn) Jun'21 Mar'21 Dec'21 Jun'20
Total Assets 54.3 53.2 52.8 54.3
Gross Loans and Advances 33.2 32.7 32.2 34.6
Deposits 37.0 36.5 36.9 35.1

Key ratios highlights

Percentage Jun'21 Mar'21 Dec'20 Jun'20
Return on Equity* 7.8%* 5.9%* 6.5% 7.9%*
Return on Assets* 1.2% 0.9%* 0.9% 1.1%*
Net Interest Margin* 4.2%* 4.2%* 4.6% 4.8%
Cost to Income 41.2% 41.2% 39.2% 31.1%
Impaired Loan Ratio 5.1% 5.4% 5.2% 4.5%
Impaired Loan Coverage Ratio 127.7% 125.7% 129.4% 128.2%
Total Capital Adequacy Ratio Basel III* 17.8%** 18.1%** 18.6%** 18.3%**

*Annualized 
**After application of Prudential Filter  

The Total Loans and Advances increased by AED 1.0 billion amounting to AED 33.2 billion compared to 31 December 2020. Additionally, lending in the Personal Banking segment grew by AED 656.2 million over the previous year-end to AED 17.4 billion. Wholesale Banking segment’s lending was also up by AED 513.6 million compared to 31 December 2020. 

Likewise, Customer deposits increased by AED 83.0 million to AED 37.0 billion compared to 31 December 2020. The increase was mainly due to the time deposits of AED 623.0 million, which was partially offset by the decrease of AED 540.0 million in CASA and Call deposits.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:

Rating Agency Last Update Deposits Outlook
Moody’s July 2021 Baa1 / P-2 Negative
Fitch May 2021 BBB+ / F2 Stable
Capital Intelligence August 2020 A- / A2 Stable

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of The National Bank of Ras Al-Khaimah (P.S.C.)

 

Limassol, July 15, 2021 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of The National Bank of Ras Al-Khaimah (P.S.C.) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 12 July 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

For more information, click here.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

RAKBANK Signs a Memorandum of Understanding with Ajman free zone

 

Dubai, July 05, 2021 – The National Bank of Ras Al Khaimah (RAKBANK) signed a Memorandum of Understanding (MoU) to form a Strategic Alliance with one of the leading investment destinations in the country, Ajman Free Zone. The signed MoU is in line with both the organizations’ strategy of supporting SMEs and further developing a sustainable economy.

As part of the deal, RAKBANK will offer SMEs and larger businesses that are based in the Ajman Free Zone easy and direct access to account opening services, loans, credit facilities, and other banking solutions. Among the products offered to Ajman Free Zone clients are the RAKstarter account, Business Current Account, as well as the priority service banking at preferential pricing called RAKBANK Business Elite. As for the financing products, the Bank will offer Business loans, Point of Sale financing, Term and Working Capital financing, Real Estate financing, Asset based financing, as well as Cash Management services.

By working closely together, startups and businesses based in the Ajman Free Zone will benefit from the combined capabilities of RAKBANK's deep understanding of SME requirements, sophisticated data analytics to support SME’s needs as well as digital prowess, and Ajman Free Zone’s best-in-class expertise pertaining to setting up a business and know-how in customizing high-quality, tailored solutions for all clients to set up a sustainable business model.

Commenting on the partnership H.E. Eng. Ali AlSuwaidi, Director General of Ajman Free Zone, remarked: “We commend RAKBANK for its proactive efforts to help empower SMEs and large businesses. SMEs play a significant role in driving social and economic development of the country and Ajman Free Zone is committed to supporting them through strategic partnerships that facilitate their business operations. Through this MoU, we hope to bring key incentives and affordable financing solutions to the Ajman Free Zone business community, which reflects our shared commitment to advance SMEs’ aspirations to grow their business.”

For his part, Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said: “We are pleased to have partnered with Ajman Free Zone, as the MoU ultimately means providing Ajman based SMEs with the financial support they need to grow in today’s challenging economic situation. This signing reaffirms the Bank’s commitment to offer SMEs simple and convenient banking solutions that better suit their needs.”

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

United Arab Emirates, May 27, 2021: RAKBANK announced that it has concluded another issuance of USD 75 million 2.5 year Floating Rate Note (FRN) at a coupon of 3 months USD LIBOR+100 basis points. This deal was arranged through Standard Chartered Bank, who acted as the Sole Bookrunner. The FRN was issued by RAK Funding Cayman Limited and was initiated under the Bank’s USD 2 billion EMTN program. These notes were rated BBB+ by Fitch. The funds will be used by RAKBANK for general corporate purposes. The settlement date of the FRN is 27th May 2021. 

United Arab Emirates, May 24, 2021: RAKBANK announced that it has concluded an issuance of USD 75 million 2.5 year Floating Rate Note (FRN) at a coupon of 3 months USD LIBOR+100 basis points. The deal was arranged by First Abu Dhabi Bank PJSC (FAB), who acted as the Sole Lead Arranger. The FRN was issued by RAK Funding Cayman Limited and was initiated under the Bank’s USD 2 billion EMTN program. These notes were rated BBB+ by Fitch. The funds will be used by RAKBANK for general corporate purposes. The settlement date of the FRN is 24th May’2021.

 

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

  • Q1 2021 net Profit up by AED 47.2 million (70.8%) compared to Q4 2020
  • Total Assets increased by AED 458.4 million year-to-date
  • Gross Loans and Advances stood at AED 32.7 billion as of 31st March 2021 

 

 

 

United Arab Emirates, 27th April 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 113.9 million for Q1 2021, an increase of 70.8% compared to Q4 2020. As of 31 March 2021, Total Assets stood at AED 53.2 billion, an increase of 0.9% year-to-date due to enhancements in Gross Loans and Advances, lending to other banks and investments. Total Income amounted to AED 800.9 million, decreased by 0.8% compared to Q4 of 2020. Additionally, the Operating Expenses for this quarter decreased by 10.2% when compared to Q1 of 2020.

Commenting on the Bank's financial results for Q1 of 2021, Peter England, Chief Executive Officer of the National Bank of Ras Al-Khaimah, stated: "The Bank’s performance this quarter was solid and driven by a strong momentum from all of our business verticals as this was evident in the year-on-year decrease in Provision for Credit Loss by AED 123.4 million. RAKBANK is on a recovery path post COVID and will continue to maintain that trajectory while retaining healthy capital levels. Additionally, RAKBANK’s Asset Portfolio proved its resilience and is a testament to the Bank’s sustainability and adaptability, which is clearly articulated in the diversification of our earning streams.”

Q1 2021 highlights 

  • Net Profit increased by AED 47.2 million quarter-on-quarter 
  • Non-Interest Income increased by AED 23.4 million quarter-on-quarter 
  • Total Assets increased by AED 458 million year-to-date
  • Annualized Return on Average Equity stood at 5.9% and the Return on Assets at 0.9% 

 

 

 

Performance review

Net Profit improved by AED 47.2 million compared to Q4 2020, an increase of 70.8% while it decreased by 25.8% year-on-year. Total Operating Income declined by AED 200.2 million compared to Q1 2020. Total Income was down by AED 6.7 million compared to Q4 of 2020, mainly due to a reduction in Net Interest Income by AED 30.1 million, which was partly offset by an increase of AED 23.4 million in Non-Interest Income

Furthermore, the Net Interest Income and Net Income from Shariah-compliant Islamic financing decreased by 23.6% year-on-year and the non-interest income reduced by AED 35.9 million to AED 269.2 million. This is mainly due to the year-on-year decline of AED 18.1 million in net fees and commission income as well as the AED 33.2 million decrease in forex and derivative income which was offset by an increase of AED 12.1 million in investment income and AED 11.9 million in other operating income.

Asset growth

Total Assets increased by AED 458.4 million (0.9%) year-to-date and decreased by AED 6.5 billion year-on-year. Gross Loans and Advances increased by AED 531.4 million year-to-date.

Asset quality

Provisions for Credit Loss decreased by AED 123.4 million year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed the quarter at 5.4%, and the annualized Net Credit Losses to Average Loans and Advances ratio closed at 4.5% compared to 5.3% in Q1 2020.

Capitalization and liquidity

The Bank’s total Capital Ratio as per Basel III, was 18.1% compared to 18.6% at the end of the previous year after the application of a prudential filter. The regulatory eligible liquid asset ratio at the end of the quarter stood at 10.5%, compared to 14.5% as at 31 December 2020, and the advances to stable resources ratio stood comfortably at 85.5% compared to 80.6% at the end of 2020.

Q2 2021 outlook

“The Bank is well positioned to continue helping its customers prepare for a world beyond the pandemic, and that strength is reflected in the earnings achieved this quarter,” CEO Peter England said. “However, the road to recovery is arduous and our priority as a national bank currently revolves around investing in our community by prioritizing our customer needs and requirements. During the upcoming quarters, the Bank will continue to focus on deepening its customer relationships across business verticals by enhancing its digital capabilities and platforms, with the aim of providing exceptional banking solutions to meet the rapidly changing needs of those we serve.” 

Financial highlights

Income statement highlights

(AED Mn) Q4' 21 Q4' 20 Q1 20
Net Interest Income and net income from Islamic financing 531.7 561.8 696.1
Non-Interest Income 269.2 245.8 305.0
Total Income 800.9 807.6 1,001.2
Operating Expenditures (330.0) (363.7) (363.3)
Operating Profit Before Provisions for Impairment 470.9 443.9 663.9
Provisions for impairment (357.0) (377.1) (480.4)
Net profit 113.9 66.7 153.5

 

Balance sheet highlights

(AED Bn) Q1 21 Q4 20 Q1 20
Total Assets 53.2 52.8 59.8
Gross Loans and Advances 32.7 32.2 36.2
Deposits 36.5 36.9 37.8

 

Key ratios highlights

(AED Bn) Q1 21 Q4 20 Q1 20
Return on Equity* 5.9% 6.5% 7.7%
Return on Assets* 0.9% 0.9% 1.1%
Net Interest Margin* 4.2% 4.6% 4.9%
Cost to Income 41.2% 39.2% 36.7%
Impaired Loan Ratio 5.4% 5.2% 4.0%
Impaired Loan Coverage Ratio 125.7% 129.4% 131.5%
Total Capital Adequacy Ratio Basel III* 18.1% 18.6% 16.4%

*Annualized 
**After application of Prudential Filter  

Lending in the Wholesale Banking and Personal Banking segments increased by AED 113.9 million and AED 453.0 million respectively and Business Banking lending was lower by AED 35.4 million compared to 31 December 2020. Customer deposits declined by AED 465 million to AED 36.5 billion compared to 31 December 2020. Customer deposits declined by AED 1.3 billion compared to 31 March 2020, mainly due to decrease of AED 6.2 billion in time deposits which was partly off-set by AED 4.9 billion increase in CASA deposits.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:

Rating Agency Last Update Deposits Outlook
Moody’s December 2020 Baa1 / P-2 Negative
Fitch July 2020 BBB+ / F2 Stable
Capital Intelligence August 2020 A- / A2 Stable

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective December 31, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

 

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

02/021/2021
 

  • > Bank’s Full-Year 2020 Net Profit decreased by AED 589.9 million

  • > RAKBANK’s Total Assets declined by 7.6% during 2020 mainly due to reduced loan demand

  • > Gross Loans and Advances stood at AED 32.2 billion as of 31st December 2020

 

United Arab Emirates, 2nd February, 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 505.4 million for the Full-Year of 2020, decreasing by AED 589.9 million over the previous year. The Bank’s results reflect the impact of the pandemic on our customers and the economy whereby Total Assets stood at AED 52.8 billion, decreasing by 7.6% over 2019, and Gross Loans and Advances closed at AED 32.2 billion, down by 11.2% over the previous year. However, business fundamentals remain strong with Deposits growing by 0.3% including the CASA growth of AED 5.1 billion (22.3%). The Return on Average Assets ratio closed the year at 0.9% compared to 2.0% for the previous year and Return on Average Equity was 6.5%, compared to 14.9% in 2019.


The Board of Directors recommended a distribution of cash dividend of 15% of the share capital (15 fils per share) for the shareholders’ consideration and approval at the Annual General Meeting (AGM).


RAKBANK CEO, Peter England, commented: “The efforts of recent years to diversify our balance sheet and revenue stream delivered strong results in the first couple of months of 2020. Our Treasury business displayed an increase in operating profits year on year. Additionally, our income from investments recorded significant revenue growth as compared to the previous year. When the global pandemic struck at the beginning of 2020, the Bank activated its Business Continuity Plan. We focused on maintaining our business-critical activities and the collective wellbeing of our workforce, customers and all stakeholders. In a truly exceptional team effort, RAKBANK’s employees worked tirelessly to establish remote working capabilities for large numbers of personnel and ensured that our high levels of customer service standards were maintained at all times. Overall, we came into this period in a very strong position so the Bank has been able to continue to operate very effectively without interruption, but of course we have been impacted. As the pandemic unfolded, many of our SME customers were severely affected – and numerous Personal Banking clients faced salary cuts and other challenges. With the support of the country’s regulators, we were able to help our customers through deferrals on repayments and loan restructuring where required and reduced or eliminated a number of charges for clients.”

FY 2020 highlights

  • > Customer deposits grew by AED 118 million to AED 36.9 billion compared to 2019 with a strong growth of CASA deposits of over AED 5 billion
  • > Operating Expenses decreased by AED 175.1 million, down by 11.1% compared to the previous year
  • > Annualized Return on Assets stood at 0.9% and Return on Equity at 6.5%
  •  
  •  

 

 

Performance review

Total Income for the financial year ended 31 December 2020 amounted to AED 3.6 billion, which decreased by 10.4% as compared to the same period of the previous year. Net Interest Income and Net Income from Islamic Finance stood at AED 2.5 billion for the year 2020, decreasing by 9.9% year-on-year. Non-Interest Income decreased by AED 138.4 million year-on-year to AED 1.0 billion, mainly due to a decrease of AED 139.9 million in Net fees and commission income. Operating expenses decreased 11.1% year-on-year and the cost to income ratio closed at 39.2% for the year.

Gross Loans & Advances decreased by AED 4.1 billion to AED 32.2 billion, which is a decline of 11.2% year-on-year resulting in a reduction in Bank’s total assets by 7.6% to AED 52.8 billion compared to the end of 2019. Whereas, Customer deposits grew by AED 118 million to AED 36.9 billion, a 0.3% increase compared to the end of 2019.

Asset quality
Provision charges for credit loss increased by AED 350.1 million (FY 2020 Vs FY 2019), which is a 26.7% increase year-on-year however this increase is mainly related to additional precautionary provisions under IFRS 9. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 5.2% compared to 4.0% as at 31 December 2019. RAKBANK is well provisioned against loan losses with a loan loss coverage ratio of 129.4%, excluding mortgaged properties and other realizable asset collateral available against loans.

Capitalization and liquidity
The Bank’s Total capital adequacy ratio as per UAE Central Bank regulations stood at 18.6% at the end of December 2020. The Common Equity Tier 1 ratio of the Bank stood at 17.5%. The regulatory eligible liquid asset ratio was 14.5% at the end of December 2020 well above the minimum requirement. The advances to stable resources ratio stood comfortably at 80.6% compared to 89.1% at the end of 2019.

RAKBANK’s Chairman, H.E. Mohamed Omran Alshamsi, commented: “From our perspective, we have been very focused on doing what we can, which is to continue running our business in the best way possible, responding and supporting our customers, making sure we are consistently executing our strategy as well as ensuring we have an even stronger balance sheet so that we are in the best possible position to respond to a variety of different economic scenarios. That said, economic activity in the UAE is in a gradual recovery phase as businesses return to normalcy especially the business segments catered to by RAKBANK. The Bank remains cautiously optimistic about 2021 and will continue to stay vigilant. Technology and specifically digital banking, has played an enormous role in the way we have served our customers, particularly over the last year. The Bank has really been able to further leverage the power of digital banking by expanding our services and solutions on our digital platforms, allowing the majority of customers’ day-to-day financial needs to easily be met and completed online in just a few simple steps, without the need to visit a branch. Additionally, we sought to stay connected with our customers throughout these unprecedented times and kept them updated and informed about the support we are offering as well as any changes in our processes or procedures that they need to be aware of.”

 

Click Here to view Financial Highlights

07/01/2021

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

09/12/2020

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

09/11/2020

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

22/10/2020
 

RAKBANK Reports Nine Months Ended 30 September 2020 Net Profit of AED 438.6 million

The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated net profit of AED 438.6 million for the nine-month period ended 30 September 2020. Third quarter earnings were lower due to reduced income resulting from a subdued loan demand and higher IFRS 9 provisions that are set aside as precautionary measures to combat the economic impact of COVID-19.

For the nine months ended September 30, 2020, the Bank's Total Income of AED 2.8 billion was down by AED 241.9 million on a year-on-year basis due to a decline in Net Interest Income and Net Income from Islamic Financing as well as a lower Non-Interest Income. Moreover, Total Assets stood at AED 52.3 billion as at 30 September 2020, decreasing by 7.0% year-on-year and by 8.4% year-to-date.

RAKBANK CEO, Peter England, commented: "Since the gradual reopening of the business, we are seeing signs of improvement in the UAE economy. However customer demand for loans has declined considerably as many SMEs and individuals continue to take a cautious stand. This combined with a low interest rate environment is providing challenges for the Bank’s top line income. To help cushion some of this impact, RAKBANK has taken a very proactive approach to cost optimisation and this is evident with the Bank’s Operating Expenditures reducing by 12.2% year-on-year, which has resulted in an improvement in Cost to Income ratio of 37.4%. Other than the continued precautionary loan loss provisions being taken under IFRS 9, the underlying asset quality of our book remains in decent shape, which of course has been supported by the Central Bank of the UAE’s very proactive approach in providing the Targeted Economic Support Scheme (TESS) for borrowers who are challenged in this time.ʺ

Performance review YTD 2020
Total Income decreased by 8.1% to AED 2,756.4 million, as compared to the same period of the previous year, mainly due to a decrease in Non-Interest Income by AED 114.0 million on account of the lower business activity and the decline of AED 127.9 million in Net Interest Income and Net Income from Islamic Products because of a declining balance sheet and lower margins. In addition, Net Interest Income and Net Income from Shariah-Compliant Islamic Financing weakened by 6.1% year-on-year to AED 1,963.8 million and the Non-Interest Income reduced by 12.6% to AED 792.7 million, as a result of the year-on-year decrease of AED 103.2 million in Net Fee & Commission Income and AED 32.4 million in Forex & Derivative Income.

Asset
Total Assets decreased by AED 4.8 billion or 8.4% year-to-date and by AED 3.9 billion year-on-year, mainly due to the reduction in customer Loans & Advances and Cash & Balances with Central Bank of the UAE offset by higher balances with banks.

Asset quality
Provisions for Credit Loss increased by AED 302.3 million year-on-year and this stemmed from the additional precautionary provisions adopted to combat the expected economic and operating slowdown in the environment resulting from the pandemic. The Non-Performing Loans & Advances to Gross Loans & Advances ratio closed at 5.1% compared to 4.0% as at 31 December 2019 as a repercussion of the decline in Loans & Advances. Additionally, the annualised Net Credit Losses to Average Loans & Advances ratio closed at 4.9% compared to 3.7% in YTD September 2019 due to the higher provisions under IFRS 9 and a declining loan book.

Capitalization and liquidity
The Bank’s total Capital Ratio as per Basel III, after the application of the prudential filter, improved to 19.4% compared to 16.8% at the end of the previous year. The regulatory eligible liquid asset ratio at the end of the period was 9.7%, compared to 12.9% as at 31 December 2019. Similarly, the advances to stable resources ratio stood comfortably at 86.0% compared to 89.1% at the end of 2019.

2020 outlook
"The third quarter has remained challenging for RAKBANK, and we have to expect this trend to continue for next few quarters at least as it takes time for the gradual recovery to flow through the economy and begin to translate into improved performance at RAKBANK. In the meantime however, we have used this time to make significant progress in our Digital Transformation including launching our new Mobile Application and a host of digital initiatives in the SME space in the third quarter. The rollout plan for a large number of other new digital initiatives in the next few quarters with a number of exciting new market-firsts is gaining significant momentum and we look forward to adding substantial value for our clients with these offerings.ʺ Peter England concluded.

Click here to view the Financial highlights.

08/10/2020

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

09/09/2020

Announcement Regarding Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the Bank in the period prior to March 1, 2015

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, to contact the Bank by phone: +971 4 291 5545 or email: [email protected] to make sure that the shareholder's name exists and is eligible for cash dividends.
 
In the event that the shareholder is entitled for cash dividends, the following documents should be submitted to the Bank so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone: +971 4 291 5545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders. Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

20/08/2020
 

RAKBANK would like to announce that Mr Peter England, The CEO of the National Bank of Ras Al Khaimah has informed the Board of Directors regarding his intention to retire from his role as CEO at an appropriate time during the second half of 2021. Mr England felt it was best to advise the Board of his intentions early, to allow the opportunity for the Board to take their time in beginning a completely open and transparent process in finding a suitable successor. 

H.E. Mohamed Omran Alshamsi, Chairman of RAKBANK, advised that the Board has regrettably accepted Mr England’s decision to retire from employment. The transformation in RAKBANK during the last 7 years under Mr England’s guidance and direction has been remarkable. He has built a truly world class organisation, with very high standards of corporate governance, and an exceptional reputation for service excellence, particularly in serving the SME community. RAKBANK has transitioned from a very product centric organisation, to an extremely renowned UAE banking group which can cater to the needs of all stakeholders.

Mr England commented that there is never an easy time to decide when to transition from life as a senior executive in such a successful organisation as RAKBANK to moving on to retirement. I am very proud of what we achieved collectively between the whole management team and the Board and we have received amazing support from all our customers and shareholders. Mr England also commented that there is still a huge amount of work to be done in the next year or so, managing RAKBANK through the very challenging times that the whole world is currently in, and preparing the groundwork for RAKBANK’s future post COVID-19.

10/08/2020
 

The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 306.6 million for H1 2020, a decrease of 44.7% compared to the first half of 2019 due to higher IFRS 9 provisions that are set aside as precautionary measures to combat the possible economic impact of COVID-19. Total Income of AED 1.9 billion for H1 2020 was down by 4.5% on a year-on-year basis. As at 30 June 2020, Total Assets stood at AED 54.3 billion, decreasing by 5.1% year-on-year and by 4.9% year-to-date. 

RAKBANK CEO, Peter England, commented: “While the increased IFRS 9 provisions at RAKBANK have weighed down on our net profit, our overall performance for the 1st half was solid. In fact, if we exclude the IFRS overlay set aside for potential future bad debts our operating profit including ordinary provisions was very similar to the 1st half of 2019. Spending habits of consumers and businesses overall have been subdued which is reflected in the Bank’s Gross Loans and Advances, which contracted by 2.2% year-on-year. That said, RAKBANK witnessed an increase in CASA deposits by AED 1.0 billion compared to 31 December 2019 which is indication of changing behaviour of clients, as well as the Bank’s operational resilience during this crisis.”

Performance highlights: H1 2020

- 6-month Net Profit of AED 306.6 million decreased by 44.7% year-on-year

- Total Income declined by 4.5% compared to H1 2019

- Operating expenditures reduced by 9.5% year-on-year which resulted in an improvement in cost income ratio to 37.1%

- Gross Loans & Advances dipped by 2.2% year-on-year; down 4.7% year-to-date

- Total Deposits at AED 35.1 billion, down by 4.8% year-to-date as the Bank required less funding for its lending activities

- Annualised Return on Assets stood at 1.1% and Return on Average Equity at 7.9% respectively 

Performance review H1
Total Operating Income decreased by 4.5% to AED 1,903.9 million as compared to the same period of the previous year.Total Income was down by AED 89.8 million compared to the first half of 2019, mainly due to decrease in non-interest income by AED 72.9 million and the decline of AED 16.9 million in Net Interest Income and Net Income from Islamic products. Likewise, the Net Interest Income and Net Income from Shariah-compliant Islamic financing weakened by 1.2% year-on-year to AED 1,362.7 million and the non-interest income reduced by 11.9%  to AED 541.3 million, mainly due to the year-on-year decrease of AED 65.2 million in net fees and commission income and AED 22.9 million in forex and derivative income respectively.

Assets 
Total Assets decreased by AED 2.8 billion or 4.9% year-to-date and by AED 2.9 billion year-on-year mainly due to the reduction in customer Loans & Advances and Cash & Balances with Central Bank. 

Asset quality
Provisions for credit loss increased by AED 232.9 million year-on-year and this was mainly due to additional precautionary provisions taken in view of the expected deterioration of the current economic and operating environment. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 4.5% compared to 4% as at 31 December 2019. Additionally, the annualised Net Credit Losses to Average Loans and Advances ratio closed at 5.0% compared to 3.8% in H1 2019 due to the higher provisions under IFRS 9.

Capitalization and liquidity
The Bank’s total Capital Ratio as per Basel III, after the application of the prudential filter, was 18.3% compared to 16.8% at the end of the previous year. The regulatory eligible liquid asset ratio at the end of the period was 9.8%, compared to 12.9% as at 31 December 2019. Similarly, the advances to stable resources ratio stood comfortably at 89.6% compared to 89.1% at the end of 2019.

H2 2020 outlook
“We entered this crisis from a position of strength through the early adoption of several actions aimed at ensuring the safety and security of all our stakeholders, as well as supporting their financial well-being. I’d like to highlight that our credit quality at RAKBANK has been stable throughout the first half of 2020 and the current increase in the impairment provisions is largely a precautionary measure taken to protect the Bank from the potential deterioration in credit quality for the impending quarters. As a proactive step, the Bank reserved additional ECL provision amounting to AED 232 million. RAKBANK is constantly taking the necessary steps to optimise operating costs as much as possible without impacting our operations or business, with the ultimate aim of increasing efficiency and utilizing appropriate technologies.”  Peter England concluded. 

Click here to view the Financial highlights.

09/08/2020
 

Announcement regarding the Unclaimed Cash Dividends of Shareholders of the National Bank of Ras Al Khaimah (P.S.C.) which are held with the bank in the period prior to March 1, 2015

With reference to the directives issued by the Securities and Commodities Authority regarding unclaimed cash dividends by shareholders of local listed public joint stock companies that are held with these companies in the period prior to March 1, 2015.

The National Bank of Ras Al Khaimah (P.S.C.) (the Bank) invites its shareholders who are entitled for unclaimed cash dividends in the period prior to March 1, 2015, Click here to visit the link to make sure that the shareholder's name exists and is eligible for cash dividends and to provide the Bank, in the event that the shareholder is entitled for cash dividends, with the following documents so as to collect the cash dividends:

1. A letter signed by the shareholder or his legal representative addressed to the Bank and which includes a request to issue a cheque or make a bank transfer of the cash dividend amount.

2. Original Emirates ID of the shareholder and a copy thereof or the original passport of the shareholder and a copy thereof.

3. In the case of a general or a special power of attorney from the shareholder to a third party attorney, please provide the original POA duly notarized at the notary public together with a copy thereof, as well as the original Emirates ID of the attorney and a copy thereof or the original passport of the attorney and a copy thereof.

4. An original letter issued by the relevant bank at which a shareholder holds an account confirming the shareholder’s account IBAN number held at that bank, to which the relevant cash dividends are to be transferred.

5. Please contact the Bank’s IR Team (email: [email protected]; phone:+97142915545) regarding the special requirements which need to be satisfied in case a shareholder resides outside the UAE or in case of deceased shareholders.
Please note that these requirements differ from the requirements which relate to shareholders who are residents of the UAE.

Please note that effective February 14, 2021, dividends unclaimed by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing the cash dividends to eligible shareholders upon claiming them. The Authority will publish a statement on the Authority and financial markets websites, explaining that it will assume this role and the details of it in due course.

03/05/2020
 

- Q1 2020 Operating Profit up by AED 17.4 million (2.8%) year-on-year

- Q1 2020 Total income up by AED 20.6 million (2.1%) compared to Q4 2019

- Total Assets increased by 11.7% year-on-year

- Gross Loans and Advances at AED 36.2 billion as of 31st March 2020, up 4.5% year-on-year 

The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 153.5 million for Q1 2020, a decrease of 43.2% compared to the first quarter of 2019 due to higher IFRS 9 provisions that are set as precautionary measures to combat the economic impact of the novel coronavirus. Total Income of AED 1.0 billion remained flat on a year-on-year basis and increased by 2.1% compared to the fourth quarter of 2019. As at 31 March 2020, Total Assets stood at AED 59.8 billion, increased by 11.7% year-on-year and by 4.6% year-to-date. 

RAKBANK CEO, Peter England, commented: “RAKBANK had an exceptional January and February and we were on track for one of our best quarters on record until the events around COVID-19 began to unfold. Despite this, our operating performance for the first quarter remained strong. However, like most banks globally we have taken the pre-emptive judgemental overlays in our IFRS 9 provisions to factor in the challenges that lie ahead, which has led to additional provisions of just over AED 130 million for the quarter. RAKBANK is very well positioned to weather the current challenges with very high levels of capital, liquidity and precautionary provisions, leaving us in a very strong position to help our clients through these very challenging times.”

Q1 2020 highlights:

•    Operating Profit increased by AED 17.4 million year-on-year
•    Total Income increased by AED 20.6 million quarter-on-quarter 
•    Total Assets increased by 11.7% year-on-year
•    Annualised Return on Assets stood at 1.1% and Return on Average Equity at 7.7%

Performance review:
On a year-on-year basis, Total Operating Income improved marginally to AED 1.0 billion. Total Income was up by AED 20.6 million compared to the fourth quarter of 2019, mainly due to an increase in non-interest income by AED 34.9 million on higher investment gains, which was partly offset by a decrease of AED 14.3 million in Net Interest Income and Net Income from Islamic products due to the shorter quarter. 

Furthermore, the Net Interest Income and Net Income from Shariah-compliant Islamic financing increased by 1.8% year-on-year and the non-interest income declined by AED 12.2 million to AED 305.0 million, mainly due to the year-on-year decrease of AED 10.4 million in net fees and commission income and AED 6.0 million in forex and derivative income.


Asset growth:
Total Assets increased by AED 2.6 billion or 4.6% year-to-date and by AED 6.2 billion year-on-year. The major contributions for the year-on-year growth came from the Gross Loans and Advances that increased by AED 1.6 billion and the Bank placements, which grew by AED 3.6 billion. In addition, the Cash and Central Bank balances increased by AED 882.8 million. 

Asset quality:
Provisions for credit loss increased by AED 134.1 million year-on-year and this is was mainly due to additional provisions taken in view of the expected deterioration in the current economic and operating environment. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed the quarter at 4.0% flat compared to 31 December 2019, and the annualised Net Credit Losses to Average Loans and Advances ratio closed at 5.3% compared to 4.0% in Q1 2019 due to higher provisions under IFRS 9.

Capitalization and liquidity:
The Bank’s total Capital Adequacy Ratio as per Basel III, was 16.1% compared to 16.8% at the end of the previous year. After the application of the prudential filter the Capital Adequacy Ratio as at March 31, 2020 improves to 16.4%. The regulatory eligible liquid asset ratio at the end of the quarter stood at 12.8% compared to 12.9% as at 31 December 2019, and the advances to stable resources ratio stood comfortably at 88.2% compared to 89.1% at the end of 2019.

Q2 2020 Outlook:
“We are continuously monitoring the developments of COVID-19 and are always prepared to support our customers facing financial hardship or loss of income due to its economic impact on individuals, SMEs and corporates, including elimination or reduction of many fees and rates. These measures were made possible with the support of the Central Bank of the UAE’s financial stimulus packages that directly benefited customers by relieving them of their financial burdens during the health crisis. This important step underscores the resilience of UAE's financial system and the strength of our regulators. RAKBANK will monitor evolving conditions and consider more actions as necessary with the ultimate aim of further supporting our customers.” Peter England concluded.
 

RAKBANK’s Chairman, H.E. Mohamed Omran Alshamsi, commented: “In a steadily growing economy marked by digital advancements and product launches, the Bank produced yet another strong fourth quarter and full year, allowing us to increase investments in our customer value proposition, the community, and employees, while keeping a close eye on expenses. RAKBANK’s core business is resilient and our diversified portfolio resulted in an increase in the Bank’s assets and the growing customer deposits, which in turn will allow us to continuously deliver robust and sustainable results for the future.”

Click here to view the Financial highlights.

23/10/2019

 

Bank’s Full-Year 2019 Net Profit increased by AED 177.7 million (19.4%)

RAKBANK’s Total Assets grew by 8.4% during 2019

Gross Loans and Advances is at AED 36.3 billion as of 31st December 2019, up 4.1% from the previous year

The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 1,095.3 million for the Full-Year of 2019, increasing by AED 177.7 million over the previous year. The Growth in the Bank’s Net Profit was driven by the improved net interest income, an increase in the net income from Islamic financing and the non-interest income as well as a reduction in the provisions for credit loss for the year. As at 31 December 2019, the Total Assets stood at AED 57.1 billion, a rise of 8.4% compared to the 31 December 2018. 

The Board of Directors recommended a distribution of cash dividend of 30 fils per share for the shareholders’ consideration and approval at the Annual General Meeting (AGM).

RAKBANK CEO, Peter England, commented: “2019 represented a milestone for RAKBANK with total income reaching close to AED 4 billion for the first time in the Bank’s history. We also saw a significant boost in our fee income line to reach an all-time high of AED 1.18 billion. The results of our significant shift in strategy that we set out on in 2015 to diversify the Bank’s earnings base continue to deliver market leading results. The growth in RAKBANK’s net profit for 2019 was supported by a year-on-year drop in the Bank’s provision for credit loss by AED 107.9 million which again demonstrates the effectiveness of our diversification strategy and continual focus on asset quality. Gross Loans and Advances grew year-on-year and Customer Deposits climbed to a record high, increasing by 4.1% and 7.9% respectively compared to the previous year. Loan growth was largely driven by our Wholesale Banking and Financial Institutions businesses whilst the Bank retained its market leading position in the small business sector and continued to roll out innovative offerings in the Personal Banking space.”

FY 2019 highlights:

Net Profit increased by 19.4% year-on-year

Total Income increased by 4.0% year-on-year

Total Assets increased by 8.4% year-on-year

Improved asset quality resulted in a decline in provisions 

Annualized Return on Assets stood at 2.0% and Return on Equity at 14.9%
 

Performance review:

Total Income was AED 3.98 billion for the financial year ended 31 December 2019, which increased by 4.0% as compared to the same period of the previous year. Net Interest Income and Net Income from Islamic Finance for the year 2019 was AED 2.8 billion, growing by 1.2% year-on-year. Non-Interest Income improved by AED 118.6 million year-on-year to AED 1.2 billion, mainly due to an increase of AED 84.2 million in Forex & Derivative income and AED 43.1 million in Fee & Commission income. Operating expenses increased 5.5% year-on-year and the cost to income ratio closed at 39.5% for the year. 

Gross Loans & Advances increased by AED 1.4 billion to AED 36.3 billion, which is a rise of 4.1% year-on-year resulting in the direct contribution towards the Bank’s total assets and increasing it by 8.4% to AED 57.1 billion compared to the end of 2018. The Total Assets at RAKBANK also increased because of an increase in bank loans of AED 1.8 billion and a growth in the Investments portfolio of AED 1.0 billion. Additionally, Customer deposits grew by AED 2.7 billion to AED 36.8 billion, a 7.9% increase compared to the end of 2018. 

Asset quality
Provision charge for credit loss continued its downward trajectory during 2019, decreasing by AED 107.9 million (FY 2019 Vs FY 2018) which is a 7.6% decline year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 4.0% compared to 4.2% as at 31 December 2018. RAKBANK is well provisioned against loan losses with a loan loss coverage ratio of 118.4%, excluding mortgaged properties and other realizable asset collateral available against loans. 

Capitalization and liquidity
The Bank’s Total capital adequacy ratio as per UAE Central Bank regulations stood at 16.8% at the end of December 2019. The Common Equity Tier 1 ratio of the Bank stood at 15.7%. The regulatory eligible liquid asset ratio was 12.9% at the end of December 2019 well above the minimum requirement of 10.0%. The advances to stable resources ratio stood comfortably at 89.1% compared to 94.5% at the end of 2018. 

RAKBANK’s Chairman, H.E. Mohamed Omran Alshamsi, commented: “In a steadily growing economy marked by digital advancements and product launches, the Bank produced yet another strong fourth quarter and full year, allowing us to increase investments in our customer value proposition, the community, and employees, while keeping a close eye on expenses. RAKBANK’s core business is resilient and our diversified portfolio resulted in an increase in the Bank’s assets and the growing customer deposits, which in turn will allow us to continuously deliver robust and sustainable results for the future.”

Click here to view the Financial highlights.

23/10/2019

 

Nine-month Net Profit of AED 839.4 million increased by 24.9% year-on-year

Total Income increased by 5.8% year-on-year

Total Assets increased by 8.7% year-on-year and by 6.8% year-to-date

The National Bank of Ras Al Khaimah (RAKBANK) Group (“RAKBANK” or the “Bank”) has announced a consolidated net profit of AED 839.4 million for the nine-months period ended 30 September 2019, a growth of 24.9% year-on-year. The third quarter of 2019 generated a profit of AED 284.5 million, an increase of 18.5% year-on-year. The Gross Loans & Advances have grown by 4.3% year-to-date to AED 36.3 billion. 

Commenting on the results, Peter England, CEO of RAKBANK, said: “We achieved another very good result with total income for the third quarter of 2019, exceeding AED 1 billion and net profit reaching AED 284 million, which was an 18.5% increase over the same period of last year. Looking at the year-to-date results, net profit increased by 24.9% to AED 839 million on the back of strong income growth and a continued reduction in provisions despite a challenging external environment. Total Income grew by 5.8% compared to the same period last year and stood at close to AED 3.0 billion for the first nine months of 2019. The stand out performer of the year continues to be fee income, with all business units recording solid growth in this area relative to their performance in 2018, leading to a 17.9% increase in this line. Our Gross Loans and Advances increased by 3.4% year-on-year, which was mainly driven by Wholesale Banking and Financial Institutions Group segments. Diversification of our balance sheet whilst retaining a firm commitment to the SME sector has been at the heart of our strategy over the last 5 years and the results of this continues to bear fruit in terms of sustained income growth and lower provisions.”

Nine month 2019 financial highlights 

- Net Profit increased by 24.9% year-on-year

- Total Income increased by increased by 5.8% year-on-year

- Total Assets increased by 8.7% year-on-year

- Improved asset quality resulted in a decline in provisions 

- Return on Assets stood at 2.1% and Return on Equity at 15.5%

- Performance review

Total Income is AED 3.0 billion for the nine months ended 30 September 2019, which increased by 5.8% as compared to the same period of the previous year. Net Interest Income and Net Income from Islamic Finance for the first nine months of 2019 was AED 2.1 billion, growing by 1.2% year-on-year. Non-Interest Income improved by AED 138 million year-on-year to AED 907 million, mainly due to an increase of AED 74 million in Forex & Derivative income and AED 54 million in Fee & Commission income. Operating expenses increased 5.6% year-on-year and the cost to income ratio for the period closed at 39.2%.

Gross Loans & Advances increased by AED 1.5 billion to AED 36.3 billion, which is a rise of 4.3% year-to-date, which contributed to an increase of the Bank’s Total Assets by 6.8% to AED 56.3 billion compared to the end of 2018. Likewise, the Total Assets increases was also because of the growth of Bank placements of AED 1.2 billion and an increase in Investments by AED 0.9 billion. In addition, Customer deposits grew by AED 2.3 billion to AED 36.5 billion, a 6.8% growth compared to the end of 2018. 

Asset quality

Impairment charge continued their downward trajectory from its peak in the third quarter of 2018. Impairments decreased by 9.9% (Q3 2019 Vs Q3 2018) which is a 6.3% decline year -on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed the period at 3.7% compared to 4.2% as at 31 December 2018. RAKBANK is well provisioned against loan losses with a loan loss coverage ratio of 129.1%, excluding mortgaged properties and other realizable asset collateral available against loans. 

Capitalization and liquidity

The Bank’s Total capital adequacy ratio as per UAE Central Bank regulations stood at 17.5% at the end of September 2019. The Common Equity Tier 1 ratio of the Bank stood at 16.4%. The regulatory eligible liquid asset ratio at the end of September 2019 was 12.2% well above the minimum requirement of 10.0%. The advances to stable resources ratio stood comfortably at 89.5% compared to 94.5% at the end of 2018.

England concluded: “On the innovation front we continue to develop market leading products and services such our ‘RAK Starter’ business account that is exclusively for start-up companies registered in the UAE. Additionally, the Bank partnered with Mastercard to offer its Business Banking customers access to an online payments gateway that is safe, simple and smart via a new portal called Simplify Commerce. We also revamped our RAKBANK Gold Account that offers our customers access to gold at extremely competitive rates, where they can buy or sell gold at anytime from anywhere in seconds using RAKBANK Gold Account, through RAKBANK’s Digital Banking App and continued to grow and develop our on-line real time remittance platform, ‘RAKMoneyTransfer’. We also made significant progress on our new Mobile Banking application which is due for release in the 4th Quarter of this year.” 

Click here to view the Financial highlights.

22/07/2019

6-month Net Profit of AED 554.9 million increased by 28.5% year-on-year

Total Income increased by 7% year-on-year

Total Assets increased by 12.1% year-on-year and by 8.7% year-to-date

The National Bank of Ras Al Khaimah (“RAKBANK” or the “Bank”) has announced its financial results for the 6-month period ended 30 June 2019. Consolidated first-half Net Profit of AED 554.9 million increased by 28.5% year-on-year, with second quarter net profit of AED 284.8 million increasing by 25.7% compared to Q2 2018. On a quarter-on-quarter basis, net profit improved by 5.4%. Gross Loans & Advances have grown by 1.4% year-to-date, reaching AED 35.3 billion, with lending growth delivered by the Wholesale and Retail Banking portfolios.

Commenting on the results, Peter England, CEO of RAKBANK, said: “It has been a very strong first half for 2019. Whilst loan growth has been challenging in our Personal Banking and SME segments due to market conditions, we continue to see good traction in our Wholesale and Financial Institutions Businesses. In terms of asset quality, we continue to see a reduction in the Non-Performing Loans to Gross Loans and Advances ratio that closed the period at 3.7%, while our increasingly diverse revenue streams are demonstrated by growth in fee and commission income of AED 44 million compared to H1 2018 and an increase of AED 56.9 million in Forex and Derivative income. Our strategy remains focused on achieving diversification in our business, and its rewards are clearly seen in numbers achieved across business units. 

Performance highlights: H1 2019
 

6-month Net Profit of AED 554.9 million increased by 28.5% year-on-year

Total Income up 7% compared to H1 2018 

Gross Loans & Advances increased by 0.4% year-on-year; up 1.4% year-to-date

Total Deposits at AED 38.9 billion, up by 13.9% year-to-date

Return on Assets at 2.1% and Return on Average Equity at 15.6% (annualized)
 

Performance review

Total income of AED 2.0 billion for the six months ended 30 June 2019 improved by 7.0% on the same period in 2018. Net Interest Income and Net Income from Islamic Finance for the first half of 2019 was AED 1.4 billion, growing by 1.6% year-on-year. Non-Interest Income improved by AED 108.3 million year-on-year to AED 614.2 million, mainly due to an increase of AED 56.9 million in Forex & Derivative income and AED 44 million in Fee & Commission income. Operating expenses increased by 5.1% year-on-year and the cost-to-income ratio dropped to 39.1% compared to 39.9% in H1 2018. 

Year to date growth in Total Assets resulted from an increase of AED 495.3 million in Gross Loans & Advances and increases of AED 2.2 billion in bank placements and AED 1.0 billion in cash and balances with the Central Bank. Healthy growth of 3.1% in Wholesale Banking loans further contributed to an increase in Gross Loans & Advances, while Customer Deposits grew by AED 4.7 billion to AED 38.9 billion, an increase of 13.9% year-to-date. The Bank’s current and savings accounts (CASA) balances grew by AED 1.5 billion. 

Asset quality
Provisions have continued to improve during the last seven quarters. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed the period at 3.7% compared to 3.9% as at 30 June 2018 and 4.2% as at 31 December 2018. RAKBANK is well provisioned against loan losses with a loan loss coverage ratio of 131.8%, excluding mortgaged properties and other realizable asset collateral available against loans. Impairments maintained a downward trajectory, declining by 9.9% on the previous quarter. Impairments as at 30 June 2019 were down by 4.4% year-on-year.

Capitalization and liquidity
The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 17.3% as at 30 June 2019. The regulatory eligible liquid asset ratio at the end of the period was 15.1%. In April 2019, RAKBANK issued five-year bonds amounting USD 500 million under the Bank’s EMTN programme and paid back the outstanding nominal amount of USD 681.67 million on its 5-year bond, which matured on 24 June 2019.

England concluded: “Our robust performance was supported by key initiatives launched during the second quarter. We announced our partnership to power all retail payment transactions for Dubai’s Coca-Cola Arena, and partnered up with the Department of Tourism and Commerce Marketing (DTCM), supporting strategic initiatives and becoming key sponsors of their retail events such as Dubai Summer Surprises (DSS). Our outlook for the coming periods remains positive, as we continue to focus on boosting the performance of individual business units, while at the same time innovating to roll-out a more diverse range of products, services and solutions. We are looking forward to launching a number of new initiatives during the second half of this year.”

25/06/2019

The National Bank of Ras Al Khaimah P.S.C. (“RAKBANK”), rated Baa1 by Moody's and BBB+ by Fitch (both with stable outlook), has successfully paid back the outstanding nominal amount of USD 681.67 million on its RAKFunding Cayman Ltd. 5-year USD 800 million bond maturing on 24th June 2019. 

RAKBANK had issued USD 500 million bond earlier this year in April 2019 through RAKFunding Cayman Ltd. 

Proceeds from the issue along with other internal sources were used to pay back the bond maturing in June 2019.

RAKBANK issues bonds through RAKFunding Cayman Ltd. a special purpose vehicle established in Cayman Islands for the purpose of issuing bonds.

24/04/2019

Net Profit increased by 31.7% compared to Q1 2018

Total Income increased by 8.5% year-on-year

Total Assets increased by 9% compared to Q1 2018


The National Bank of Ras Al Khaimah (“RAKBANK”) has announced consolidated Net Profit of AED 270.2 million for Q1 2019, an increase of 31.7% on Q1 2018 and by 10% on the previous quarter. Total Income of AED 1.0 billion increased by 8.5% on a year-on-year basis and by 0.9% on Q4 2018. As at 31 March 2019, Total Assets stood at AED 53.5 billion, increasing by 9% year-on-year and by 1.6% year-to-date. 

Commenting on the results, Peter England, CEO of RAKBANK, said: 

“Total income for the first quarter 2019 exceeded AED 1 billion, which is only the second time in RAKBANK’s history that we have achieved such a result. This is a clear outcome of the Bank’s diversification strategy which commenced 4 years ago and is now delivering solid results. Non- interest income particularly was very strong for the first quarter rising to AED 317 million which is an all-time high, and was achieved by impressive results across all business lines especially our Treasury and Wholesale Banking / Financial Institutions units.  Our diversification strategy has also helped our provision line to graduate down by 5% year-on-year whilst retaining a coverage ratio in excess of 130%.  Cost to income remained stable at 38.4% despite being impacted by an annual true-up of VAT and some other timing differences. 

Q1 2019 highlights 

Net Profit increased by 31.7% year-on-year

Total Income increased by 8.5% year-on-year

Total Assets increased by 9% year-on-year

Improved asset quality resulted in a decline in provisions 

Annualized Return on Assets stood at 2.1% and Return on Equity at 15.1%

On a year-on-year basis, Total Operating Income improved by AED 78.4 million to AED 1.0 billion. Total Operating Income was up by AED 8.7 million compared to Q4 2018, mainly due to an increase in non-interest income by AED 27.7 million, which was partly offset by an AED 19.0 million decrease in net interest income and income from Islamic products, net of distribution to depositors, which totaled AED 683.8 million. 

Interest income from conventional loans and investments increased by 9.3% year-on-year, while interest costs on conventional deposits and borrowings increased by 41.3%. Net income from Sharia-compliant Islamic financing decreased by 4.0% and non-interest income improved by AED 65.5 million to AED 317.2 million, mainly due to an increase of AED 32.7 million in net fees and commission income and AED 31.6 million in forex and derivative income.

Asset growth

Total Assets increased by AED 822.7 million or 1.6% on a year-to-date basis and by AED 4.4 billion year-on-year. The major contributions for the year-on-year growth came from Gross Loans and Advances, which grew by AED 1.1 billion; investment securities, which grew by AED 1.1 billion; and cash and Central Bank balances, which grew by AED 831.1 million. Lending in the Wholesale Banking segment grew by AED 1.2 billion or 17.8% year-on-year while Business Banking lending increased by AED 173.5 million on the corresponding period.

Asset quality and impairments

Year-on-year, provisions for credit loss decreased by AED 17.9 million, mainly due to a decrease in provisions in the Business Banking portfolio. Compared to Q4 2018, provisions for credit loss declined by AED 25 million due to a decline in provisions across business units. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed the quarter at 4.0% compared to 4.2% on 31 December 2018, and the Net Credit Losses to Average Loans and Advances ratio closed at 4.0% compared to 4.4% in Q1 2018.

Q2 2019 outlook

England concluded:

“Beyond our strong financial performance, the Bank delivered a range of important initiatives in the first quarter. We continued to grow and develop our market leading position as the biggest small business bank in the UAE with a number of enhancements to our digital banking proposition and our Innovation Lab continued on the journey of developing exciting new offerings that will be launched through the course of 2019. Our instant remittance product also crossed a new all-time high of 60,000 transactions per month and our Card Acquiring business launched early 2018 produced exceptional results in the first quarter with some very large deals. More recently, in April we returned to the bond market, in line with our funding diversification efforts, which will enable us to continue to harness new technology to deliver best-in-class services across business units. Our outlook for the second quarter continues to be positive, with expectations that the UAE’s financial services sector will continue to improve, and we look forward to reporting on both financial and non-financial achievements in the first half of 2019.”
The Bank’s capital total adequacy ratio as per Basel III stood at 17.4% compared to 17.2% at the end of 2018. The regulatory eligible liquid asset ratio at the end of the quarter was 14.5% compared to 14.5% at the end of 2018. The advances to stable resources ratio stood at a comfortable 89.3% compared to 94.5% at the end of 2018.

04/04/2019

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 will pay an annual coupon of 4.125%, equivalent to 185 bps over 5-year USD Mid Swaps. 
 
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 Hong Kong, Singapore and London.
 
The strong investor demand received for the issuance, as evidenced by an order-book of around USD 2.0 billion, representing an oversubscription of around 4 times, allowed RAKBANK to price at 185 bps over USD Mid-Swaps, which was 25 bps inside the initial price guidance of 210 bps over USD Mid-Swaps. 
 
RAKBANK Chief Executive Officer, Peter England, said: “Our return to the bond market is in line with our funding diversification efforts and we have been pleased to see robust interest from international Fixed Income investors. This bond issuance will support our long-term funding requirements, which in turn supports our digitization and diversification strategy, at the heart of our 2020 Strategic Plan. Funding allows us to continue to harness new technology and deliver a best-in-class service across business units, while maintaining our efforts to grow the Bank as a customer-centric organization with an industry-leading digital offering.”
 
The issuance, in line with RAKBANK’s growth strategy, will enable the Bank to diversify its sources of financing, raise longer maturity capital, repay maturing debt, and will directly support its diversification program. During 2018, RAKBANK’s Treasury unit was successful in diversifying its funding options by increased interaction with financial institutions across the region, resulting in a higher number of liquidity providers and more effective use of the inter-bank market.
 
Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank acted as Joint Lead Managers and book-runners.

25/03/2019

RAKBANK announced today that it has mandated Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank as Joint Lead Managers & Bookrunners to arrange a series of fixed income investor meetings in Hong Kong, Singapore and London commencing on 28 March 2019. 

A 5-year benchmark Regulation S senior unsecured USD bond offering, under RAKBANK’s USD 2 billion EMTN Programme, will follow subject to market conditions. 

A Benchmark issuance typically refers to a transaction size of USD 500 million. The funds will be used as part of the Bank’s liquidity management pool in advance of the repayment of the existing Bond maturing in June 2019.

20/03/2019

United Arab Emirates – 20 March 2019: RAKBANK successfully concluded its Annual General Meeting (AGM) today at its headquarters in the emirate of Ras Al Khaimah, where the distribution of a cash dividend of AED 30 fils per share for the financial year ended 31 December 2018, which amounts to 30% of the Bank’s paid-up capital. The dividend recommendations will result in 54.8% of Group’s net profit being paid out.      

During the meeting, attendees unanimously approved all agenda items including the Bank’s consolidated balance sheet and profit and loss statements for the financial year ended 31 December 2018. 

RAKBANK Chairman, H.E. Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2018. “We are proud to highlight the Bank’s performance for this year where we have delivered an increase in Net Profit of AED 107 million or 13.2% to reach AED 917.5 million. The Bank was successful in reducing provisions for credit losses by AED 131.8 million or 8.5%. In the course of the year, we have implemented a range of cost optimization initiatives, and we have reported a Cost-to-Income ratio of 38.9%. At the start of 2018, we introduced our latest 3-year strategic plan. The plan builds on its forerunner, which had delivered organizational restructuring, a diversification of our balance sheet, de-risking and a more complete business portfolio. We now offer a wider variety of products and services – including the Wholesale and Financial Institutions segments – allowing us to play to our traditional strengths while growing in new areas such as cross-border lending, treasury, and derivative and hedging services, among others.”

“Our strategy is focused on improving performance across business units and on innovation, giving us an edge in a competitive market. In 2018, innovation was characterized by the identification of new international remittance channels – for some of which we have employed blockchain technology; the proliferation of our contactless transaction network; partnerships with third-party technology partners, as well as with organizations such as Marketplace Scan; and the launch of new digital platforms such as the RAKBANK Business Banking mobile app. Meanwhile, we remain focused on achieving excellence in customer service, as evidenced by a host of awards,” Alshamsi added. 

12/02/2019

RAKBANK proposes a dividend of 30% of the paid-up capital for the financial year ended 31 December 2018. The proposed dividend will be presented for approval by the shareholders in the Annual General Meeting (AGM) to be held on 20 March 2019 at the Bank’s headquarters in the emirate of Ras Al Khaimah.

31/01/2019

The National Bank of Ras Al-Khaimah (RAKBANK) has announced consolidated Net Profit of AED 917.5 million for FY 2018, increasing by AED 107 million over the previous year. As at 31 December 2018, the Bank’s Total Assets stood at AED 52.7 billion, growing by 8.5% compared to 2017. Gross Loans and Advances were AED 34.8 billion, up 4.8% on the previous year. 

RAKBANK CEO, Peter England, commented: “This considerable increase in Net Profit was due mainly to an increase in net interest income and net income from Islamic financing – which grew by AED 45.5 million – and a decrease of AED 131.8 million in provision for impairment in loans. Total Operating Income increased by 0.4%, due to higher net interest income, while Operating Expenses increased by AED 41.9 million, up by 2.9% compared to last year. There are tangible results to show that the efforts we have made to de-risk certain parts of the business over the last few years have allowed us to reduce provisions and improve the quality of our loan book. In short, the ‘quality’ of our earnings has improved continually over the last 2 years and we expect this trend to continue.”

Total Operating Income increased by AED 17.1 million to AED 3.8 billion, mainly due to an increase of AED 45.5 million in net interest income and income from Islamic financing, net of distribution to depositors. Non-interest income declined by AED 28.3 million to AED 1.1 billion. This was due to a year-on-year decrease of AED 61.2 million in investment income. However, the decrease was offset by an increase of AED 12.7 million for fee and commission income and an increase of AED 24.0 million for foreign exchange and derivative income.

Operating costs increased by AED 41.9 million, an increase of 2.9% on 2017. This was mainly due to an increase of AED 7.0 million in staff costs and AED 15.7 million in IT related expenses. The Group’s cost to revenue ratio increased marginally, to 38.9% compared to 38.0% in 2017. This is expected to taper down in the coming years as income grows and cost optimisation and digitalisation initiatives improve efficiency.

The AED 131.8 million decrease in provision for impairment in loans and advances was due to lower payment defaults on auto loans, RAKfinance, SME lending, and in the Commercial segment. Total impairment provision for the year was AED 1.42 billion, compared to AED 1.55 billion in 2017. Meanwhile, RAKBANK remains well provisioned against loan losses, with a conservative loan loss coverage ratio of 133.1%, which does not include the value of tangible assets held as security.

“We’re pleased to have achieved significant improvements in business performance. With Net Profit growing by more than 13%, in addition to robust growth in fee income and a rebalancing of the risk asset portfolio for Business Banking, our 2018 journey also saw the development of our Commercial and Corporate offer within Wholesale Banking. This has enabled solid asset growth, with new areas of activity introduced to drive future revenues. To achieve RAKBANK’s long-term ambitions, we need to deliver more than just an increase in net profit, and this is represented by a range of strategic initiatives, among which diversification is a key driver. Likewise, innovation is front and centre of our strategy for all business units. This approach is already putting the Bank on the path to achieving sustained future growth,” continued England.  

Total Assets grew by 8.5% to AED 52.7 billion, due to an increase of AED 1.6 billion in Gross Loans and Advances, lending to banks – which grew by AED 956 million – and an increase in investments of AED 1.6 billion. Wholesale Banking lending grew by 22.2%, up AED 1.4 billion from the previous year. Personal Banking’s loan portfolio was down by AED 346 million and Business Banking’s loan portfolio was up by AED 494 million compared to 2017. Customer deposits grew by 6.1% to AED 34.1 billion, with growth derived mainly from an increase of AED 2.7 billion in time deposits.

RAKBANK’s Chairman, H.E. Mohamed Omran Alshamsi, commented:”While 2018 presented hurdles, we maintained our diversification path, which is a core part of our 2020 Strategic Plan. RAKBANK is placing greater emphasis on connecting new technologies with advanced processes that will deliver state-of-the-art services. In doing so, we aim to better serve our customers by offering a seamless experience across products and services, through industry-leading service excellence, innovation and simplicity. In reinforcing our capacity to overcome future challenges, our strategic plan will strengthen the profile of RAKBANK beyond a locally-focused personal and SME lender to a full-service bank with relationships across client categories, including multinationals and institutions. This puts us in a very strong position for medium- and long-term growth.” 

The Bank’s capital adequacy ratio as per Basel III was 17.2% at year-end. The major change in Capital position occurred as a result of opening adjustments made in the adoption of IFRS 9. The regulatory eligible liquid asset ratio at the end of the year was 14.5%, which is much higher than the stipulated regulatory minimum of 10%. The advances to stable resources ratio stood at a comfortable 94.5%, as against the regulatory cap of 100%.

23/10/2018

The National Bank of Ras Al Khaimah (RAKBANK) Group announced a consolidated net profit of AED 671.8 million for the nine months ended 30 September 2018. The third quarter of 2018 generated a profit of AED 240.1 million, which is an increase of 6.8% year on year and a 6.0% increase compared with the second quarter of 2018. 

Commenting on the results, Peter England, RAKBANK CEO, said: “The ample liquidity and rise in customer deposits have reflected in the Bank’s solid progress in the Wholesale Banking, Business Banking, Personal Banking, and Treasury. The trends for the nine months of 2018 are showing positive signs, and the Impairments are on a downward trend. The Bank remains very committed to its diversification strategy which is now delivering growth in net interest income whilst lowering the Bank’s risk profile.”

Total Assets have grown 12.4% to AED 51.8 billion compared to the end of the 3rd quarter 2017. Gross Loans & Advances and investments increased by AED 2.5 billion and AED 2.4 billion respectively compared to 30 September 2017. The healthy growth of corporate loans from Wholesale Banking segment contributed to the increase of the Gross loans & Advances by 7.7% year-on-year. Likewise, Customer deposits grew by AED 3.2 billion to AED 34.6 billion, a 10.1% growth compared to September 2017. 

“Besides the financial performance, I’d like to highlight the Bank’s recent partnership that occurred in the third quarter of the year with the Finance Department (Government of Ras Al Khaimah) to facilitate their requirements on cash management and payment gateway solutions. Additionally, on the remittance front, we signed an agreement with Sri Lanka’s Cargills Bank, which has further leveraged the Bank’s partnership with Ripple, our RAKMoneyTransfer (RMT) services enables customers to make instant, frictionless, and secure money transfer services to Sri Lanka’s Cargills Bank via blockchain using the Ripple platform,” added England.

Operating Income was AED 2.8 billion for the nine months ended 30 September 2018.  Operating income increased by 1.2% for third quarter of 2018 compared to same period last year. The Group’s Net Interest Income for 9 months increased by 1.5% to AED 2.1 billion whilst the non-Interest Income declined by 8.2% due to lower investment income due to decreases in volume of  sale of investments during the nine months period as a result of the challenges in the Bond market. Operating expenses increased 2.9% year-on-year and the cost to income ratio for 9 months closed at 39.3%. Impairments were lower by AED 135.1 million for the nine months ended September 2018 compared to the same period of 2017. 

The Bank’s Basel III capital adequacy ratio stood at 18.5% at the end of September 2018. This level of capital provides the Bank with ample room for growth in 2018. The regulatory eligible liquid asset ratio at the end of September 2018 was 13.7% compared to 15.0% at the end of 2017. The advances to stable resources ratio stood comfortably at 87.7% compared to 87.8% at the end of 2017.

25/07/2018

 

The National Bank of Ras Al Khaimah (RAKBANK) Group announced today a consolidated net profit of AED 431.7 million for the half year ended 30 June 2018. The second quarter of 2018 generated a net profit of AED 226.6 million, which was similar to the net profit achieved for same quarter last year. Net profit for the first half increased by 13.2% year-on-year and increased by 10.5% compared with the first quarter of 2018. Gross Loans & Advances grew by 5.9% to AED 35.2 billion for the half year ended 30 June 2018 with strong growth in Wholesale Banking book.

Commenting on the results, Peter England, RAKBANK CEO said: “Our financial performance in the first half of 2018 reflects the ongoing shift of business strategy to a more diversified balance sheet. In line with this shift, provisions have continued to come off gradually in the last seven quarters after peaking in the third quarter of 2016. Gross interest income has grown strongly, though funding cost has increased more than expected as a result of increased competition for deposits in the market. Regardless, RAKBANK continues to maintain one of the lowest funding costs in the market due to our very strong SME franchise.”

Total Assets increased by 5.2% to AED 51.1 billion compared to the end of 2017. This was due to an increase in Gross Loans and Advances of AED 2.0 billion and an increase in Investments of AED 1.5 billion. The healthy growth of corporate loans from Wholesale Banking segment contributed to the increase of the Gross Loans and Advances by 11.3% year-on-year. Likewise, Customer deposits grew by AED 1.6 billion to AED 33.8 billion, a 5.0% growth compared to the end of 2017.

England also commented: “We continue to be very focused on bringing innovation to the market. We recently announced the Bank’s partnership with FC Barcelona to become their regional partner and official bank in the UAE, aiming to introduce new FC Barcelona co-branded Mastercard Platinum Credit and Debit Cards. In addition, the Bank signed strategic agreements with both RAK SME and Dubai SME to continue supporting this vital sector in the UAE economy. We also partnered up with Air Arabia to launch a co-branded Mastercard Platinum Credit Card, which offers Air Rewards and provides customers great value in the air and on the ground. Similarly, the Bank recently introduced a dedicated app for its Business Banking customers to offer them a seamless access to Trade Finance services in just one click.”

Total income was AED 1.9 billion for the six months ended 30 June 2018, which increased by 1.9% for the second quarter of 2018 over the first quarter, though declined by 2.7% over the comparable period in 2017, largely due to the challenging bond market. Net Interest Income and Income from Islamic finance for the first half of 2018 was AED 1.4 billion, which grew by 1.6% over same period last year. Operating expenses were up by 3.7% year-on-year and cost to income ratio stands at 39.9%, though this is expected to moderate down in the second half. Impairments continued their downward trajectory declining by 10.9% in the second quarter of 2018 over the previous quarter. Impairments during the six months ended 30 June 2018 were down by 15.6% from the comparable period in 2017.

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 18.2% at the end of June 2018. This level of capital provides the Bank with ample room for growth in 2018. The regulatory eligible liquid asset ratio at the end of June 2018 was 13.2% compared to 15.0% at the end of 2017. The advances to stable resources ratio stood comfortably at 91.5% compared to 87.8% at the end of 2017.

“Looking ahead, RAKBANK’s new three-year strategy will focus on building the performance of improved business units and continuing to innovate through the introduction of a more diverse range of products, services, and initiatives,” concluded England.

The National Bank of Ras Al-Khaimah (RAKBANK) announced a consolidated net profit of AED 205.1 million, an increase of AED 50.4 million over the first quarter of 2017. The Total Assets stood at AED 49.1 billion, which is an increase of 14.6% compared to 31 March 2017. Gross Loans and Advances closed at AED 33.6 billion, with a 10.3% increase over the same period of last year. Total income has declined by 2.3% when compared to the last quarter of 2017, and dropped by 3.4% in contrast to the same period in 2017.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “We have continued our efforts in the first quarter to strengthen and diversify our balance sheet and this is paying dividends in terms of lower provisions. After peaking by the end of 2016, provisions have continued their downward trajectory, reducing by 1.0% when compared with the fourth quarter of 2017 and 17.4% from the first quarter of 2017. Top line income has largely stabilised as the decline during 2017 in terms of net interest income has halted and we should see a steady growth throughout the year.”

England also commented, “Besides the financial performance, RAKBANK has participated in several initiatives throughout the first quarter of 2018. One of the Bank’s endeavours was hosting the launch of Metals Focus Gold 2018 Annual Report at our Headquarters. This momentous event was a statement of intent for RAKBANK to roll out its RAKGOLD initiative that will contribute to the future development of the region’s bullion market. Moreover, in line with its strategy of assisting businesses in the UAE, the Bank partnered with Etisalat through their ‘Hello Business Hub’, which is a one-stop location that enables small and medium businesses and start-ups to set up their operations in the UAE. In addition, the Bank is continuously committed to strengthen its Digital Banking services to customers where it partnered up with FEWA and SEWA to make a tedious task such as paying bills seamless via all its diverse touch points.”

Furthermore, the Bank’s net interest income and net income from Islamic financing increased by 1.1% compared to same period last year. Likewise, non-interest income was down by AED 39.4 million to AED 243.9 million mainly due to a decrease of AED 29.1 million in investment income and AED 14.3 million in net fees and commission income. The Total Assets rose by 14.6% to AED 49.1 billion compared to 31 March 2017. This was mainly due to the increase in Gross Loans and Advances, which grew by 10.3% year-on-year from the strength of the Wholesale Banking, Business Banking and Personal Banking Loans. Customer deposits grew by 11.9% to AED 33.3 billion compared to the 31 March 2017 and this was mainly due from the rise of AED 3.1 billion in time deposits.

The Bank’s total capital adequacy ratio as per Basel III stood at 18.64% compared to 20.69% at the end of the previous year. The Common Equity Tier 1 ratio stood at 17.47%. This level of capital provides the Bank with ample room for growth in 2018. The regulatory eligible liquid asset ratio at the end of the quarter was 13.6% compared to 15.0% at the end of 2017. The advances to stable resources ratio and stood comfortably at 88.0% compared to 87.8% at the end of 2017.

RAKBANK successfully concluded its Annual General Meeting (AGM) today at its headquarters in the emirate of Ras Al Khaimah, where the distribution of a 30% cash dividend of the Bank’s paid-up capital to shareholders for the financial year ended 31 December 2017 was approved. The dividend recommendations will result in 62% of Group’s net profit being paid out.

During the meeting, attendees unanimously approved all agenda items including the Bank’s consolidated balance sheet and profit and loss statements for the financial year ended 31 December 2017. Additionally, the shareholders approved to increase the regulatory credit risk reserve by AED 71 million to align it at 1.5% of the Bank’s total credit risk weighted assets.

RAKBANK Chairman, H.E. Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2017. “Over the course of 2017, the Bank’s performance continued to improve. Year-on-year profitability increased, confirming the success of our strategy in supporting the diversification of our revenue streams, reduction of provisions, and improvement in asset growth and asset quality. Net Profit for 2017 totaled AED 810.5 million, increasing by 22.3% over the previous year. During the course of the year, our strategy focused on consolidating efforts to offer a service and product portfolio that would deliver a ‘Simply Better’ journey for all stakeholders. The strategy is focused on building the performance of new and improved business units, by continuing to innovate in the introduction and set-up of a more diverse range of activities. RAKBANK will continue to find ways to moderate its legacy operating costs, improving efficiency across the Group, and engaging in strategic partnerships with FinTech players that will give the Bank a competitive edge in the market.”

“Our aim is to continue to diversify our loan book in core areas, while at the same time increasing revenue streams from non-interest income generated by our products and services, and expanding our footprint in the Wholesale and Treasury space. Furthermore, we have made great strides in consolidating the efforts of the previous year with new or revamped business units, all realising positive results. These accomplishments have, in part, been driven by our emphasis on innovation, which we regard as an essential vehicle for reaching future goals,” Alshamsi added.

The National Bank of Ras Al-Khaimah (RAKBANK) today announced a consolidated net profit of AED 811 million, an increase of AED 148 million (22%) over the previous year. Total Assets stood at AED 48.5 billion, an increase of 14.2% compared to 31 December 2016. Gross Loans and Advances closed at AED 33.2 billion, up by 11.6% over the previous year. Total Operating Income decreased by 0.8% due to the rebalancing of the loan portfolio, while Operating Expenses increased by AED 77.8 million, up by 5.7% over the previous year.

The provision for impairment on loans and advances decreased by AED 254.8 million compared to previous year, which is due to the lower payment defaults in all business segments compared to year 2016 and higher recoveries in Auto Loans. Total impairment provision for the year was AED 1,552.9 million compared to AED 1,807.7 million in 2016. The Non-Performing Loan ratio declined to 4.0% as at 31st December 2017 compared to 4.2% as at the previous year end.

Commenting on the results, RAKBANK Chief Executive Officer, Peter England, said: “The increase of AED 148 million in the Net Profit is mainly due to a decrease of AED 255 million in the provision for impairment in loans. 2017 was a year where we continued with our diversification strategy gradually reducing risk in the Balance sheet which was reflected in improving provisions.. We continued to attract quality business relationships as evidenced by the growth in our Customer Deposits and Loans and Advances by 9.4% and 11.6% respectively. We have made great strides in consolidating the efforts of the previous year, with new or revamped business units all achieving positive results. These achievements have, in part, been driven by our emphasis on innovation, which we regard as an essential vehicle for meeting future goals. In 2017, the Bank established a dedicated Innovation function, which has already played an important role in developing and strengthening our relationship with the UAE’s FinTech community. As with our customers, we have aligned our own journey with theirs via strategic partnerships that have been formed throughout the year like our collaboration with Invoice Bazaar and an MoU with Etisalat for managed point-of-sale services, both of which will help us improve our services to customers across segments as well as diversify our portfolio.”

Total Operating Income declined by AED 29.5 million to AED 3.8 billion which was mainly due to a decrease of AED 101.9 million in Net Interest Income and income from Islamic finance net of distribution to depositors compared to the previous year. This decrease was largely a result of the continuing focus on diversifying into lower risk areas. Non-interest income grew by AED 72.4 million to AED 1.1 billion. This was mainly due to increases of AED 62.0 million in fee and commission, AED 19.4 million in Insurance underwriting profit and AED 24.1 million in foreign exchange and derivative income. This was offset by a decrease of AED 38.4 million in investment income compared to 2016. Operating costs were up by AED 77.8 million, an increase of 5.7% on 2016. This was mainly due to an increase of AED 42.9 million in staff costs and AED 36.7 million in legal and collection costs offset by a reduction in outsourcing costs of AED 14.8 million. The Group’s cost to revenue ratio increased to 38.0% compared to 35.6% for the previous year.

Total Assets rose by 14.2% to AED 48.5 billion compared to the end of 2016. This was due to an increase in Gross Loans and Advances of AED 3.5 billion, lending to banks which grew by AED 1.2 billion and an increase in investments of AED 758 million. Wholesale Banking lending grew by 42.8%, up by AED 1.9 billion from the previous year. Personal Banking’s loan portfolio was up by AED 1.1 billion and Business Banking’s loan portfolio was up by AED 435 million compared to 31 December 2016. Customer deposits grew by 9.4% to AED 32.2 billion compared to 2016. This growth came mainly from an increase of AED 3.1 billion in time deposits and AED 297.0 million in current accounts. offset by a decrease in savings accounts and call deposits.

Commenting on the Group’s performance, RAKBANK’s Chairman H.E. Mohamed Omran Alshamsi noted: “Having restructured our core business divisions in 2016, this year our strategy focused on consolidating efforts to deliver a service and product portfolio that would deliver ‘Simply Better’ banking for all stakeholders. The strategy is focused on building the performance of the new and improved business units, by continuing to innovate through the introduction of a more diverse range of activities. In 2017, a particularly strong emphasis was placed on the growth of our Treasury and Wholesale Banking divisions, whilst SME customers have remained a high priority for our Business Banking unit. These customers continue to be of immense importance to the economic growth in the UAE, and of special importance to RAKBANK, as one of the country’s leading SME lender. Looking to 2018 and beyond, we will build on the successes that were achieved in 2017 to maintain growth across our principal business divisions, whist at the same time adapting and expanding our product range to exceed the expectations of our customers.”

After taking into consideration the profit for 2017 and before any dividend, the Bank’s Tier 1 ratio as per Basel II was 21.8% at year-end. This compares with 24.0% at the end of 2016. The Bank’s Basel III Common Equity Tier 1 ratio as at end of 2017 stands at 20.7%, which factors the profit for 2017 and the proposed dividend. This level of capital provides the Bank with ample room for growth in 2018. The regulatory eligible liquid asset ratio at the end of the year was 15.0%, compared to 16.9% the previous year. The advances to stable resources ratio stood comfortably at 87.8% compared to 85.5% at the end of 2016.

At the board meeting held on 29 January 2018, the Directors recommended a cash dividend of 30% which will result in 38% of net profit being retained within the Bank’s shareholders equity thereby increasing capital and reserves to strengthen the Bank’s overall position and provide support for future growth.

The National Bank of Ras Al Khaimah (RAKBANK) Group achieved a 9.4% growth in the consolidated net profit of AED 606.3 million for the nine months ended 30 September 2017. The third quarter of 2017 generated a profit of AED 224.8 million, which is a significant increase of 106.7% year on year. Gross Loans and Advances stood at AED 32.6 billion as of 30 September 2017, up by 12.5% compared with the same period last year. The steady growth of the Gross Loans & Advances led to an increase of Total Assets by 8.3% to AED 46.1 billion compared to the end of 2016. Additionally, Customer Deposits grew by AED 2.1 billion to AED 31.5 billion, a 7.0% growth compared to the end of 2016.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “RAKBANK’s performance these past nine months is a reflection of the Bank’s diversification strategy that was initiated a few years ago. All the various business segments of Wholesale Banking, Business Banking, Personal Banking, and Treasury have made solid progress throughout the year. Whilst diversifying our loan book and growing into new areas in Treasury and Wholesale banking particularly, the bank remains very committed to the SME segment despite the challenges faced in this area in the past 2 years.”

Total Income increased by 1.2% for the third quarter of 2017 compared to the same quarter of the previous year. The Group’s Wholesale Banking, Business Banking and Insurance businesses brought about strong growth in the non-interest income despite the net interest income for nine months declining due to the changes made in the Bank’s business mix of lending. Operating expenses increased by 6.6% year-on-year as a result of investments in new lines of business as well as continue strengthening of Compliance and Risk, and the cost associated with improvements in debt recovery. As a result of these investments the cost to income ratio for the period increased marginally to 37.7%. Impairments continued their downward trajectory from its peak in the third quarter of 2016, declining by 27.8% in the third quarter of 2017 compared with the third quarter of previous year and is down by 12.0% in the nine months compared to the same period in 2016.

“With several strategic partnerships signed this past quarter, the Bank continues to pursue new initiatives that to support its chosen market segments. One example is the signing of an agreement with a FinTech Supply Chain Finance platform, Invoice Bazaar, to further digitize our offerings and open up a new channel in SME lending. In addition, we signed a Memorandum of Understanding (MoU) for Managed Point of Sale Services with Etisalat, a first-of-its-kind approach in the UAE payments and banking industry which will help us deliver a superior Merchant Acquiring platform particularly for our SME client base. The Bank will continue to invest in product, service, and technology enhancements to ensure that we are providing a full range of products and services to our valued customers,” added England.

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 20.4% as of the end of September 2017. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of September 2017 is 14.1% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 88.8% compared to 85.5% at the end of 2016.

The National Bank of Ras Al Khaimah (RAKBANK) Group announced a consolidated net profit of AED 381.5 million for the half year ended 30 June 2017. The second quarter of 2017 generated profit of AED 226.7 million, an increase of 16% year on year and a 46.5% increase compared with the first quarter net profit. Gross Loans & Advances grew by 6.2% to AED 31.6 billion for the half year ended 30 June 2017 with strong growth in Wholesale Banking book and steady growth in the Personal Banking and Business Banking segments.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The trends for the 1st half of 2017 are showing continued positive signs where solid progress is made by all business units being Wholesale Banking, Business Banking, Personal Banking, and Treasury. Total Income for the second quarter of 2017 increased by 2.1% over the previous quarter and impairments continue on a downward trend after peaking in Q3 2016. Impairments are still relatively high reflecting the nature of our legacy book, however we expect continued improvements in this area as the year progresses.”

Total Assets increased by 3.4% to AED 44.0 billion compared to the end of 2016. This was due to an increase in Gross Loans & Advances of AED 1.8 billion partially offset by a decrease in investments of AED 497.6 million. The healthy growth of corporate loans from Wholesale Banking and the steady progress of loans from the Business Banking and Personal Banking segments contributed to the increase of the Gross loans & Advances by 8.2% year-on-year. Likewise, Customer deposits grew by AED 1.2 billion to AED 30.6 billion, a 3.9% growth compared to the end of 2016.

“Other than the financial performance, the Bank continues to invest in strategic areas and initiatives. During the quarter we commenced our partnership with C3 to open a completely new market segment where the Bank began offering payroll solutions for both banked and unbanked employees of companies. Additionally, we have expanded our remittance solutions by tapping into new corridors across Asia with plans to further expand in the second half of the year. With the aim of simplifying customers’ daily banking requirements, we were the first bank in the Middle East to introduce a new and innovative digital solution, Samsung Pay for ATMs. Looking ahead, the product and service pipeline for this year remains very strong, so expect to see continued product and service innovation from RAKBANK as the year progresses”, added England.

Total Income was AED 1.9 billion for the six months ended 30 June 2017, which increased by 2.1% for the second quarter of 2017 over the previous quarter, though declined by 2.8% over the comparable period in 2016. The Group’s Treasury, Wholesale Banking and Insurance business brought about strong growth in the non-interest income though the net interest income declined due to the changes made in the Bank’s business mix of lending. Operating expenses were marginally up year-on-year after the cost optimisation exercise in the first half of 2016 and the cost to income ratio stands at 37.4%. Impairments continued their downward trajectory from the peak in the third quarter of 2016, declining by 14.9% in the second quarter of 2017 over the previous quarter. Impairments during the six months ended 30 June 2017 were down by 2.4% from the comparable period in 2016.

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 21.1% at the end of June 2017. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of June 2017 was 14.9% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 90.9% compared to 85.5% at the end of 2016.

The National Bank of Ras Al Khaimah (RAKBANK) Group announced today the financial results for the first three months ended 31 March 2017. RAKBANK’s consolidated net profit was AED 154.7 million, an increase of AED 46.0 million over the last quarter of 2016. Gross Loans & Advances increased by 2.2% from December 2016 to AED 30.4 billion on the back of strong growth in the Wholesale banking book.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The trends for the 1st quarter 2017 are showing positive signs. We had a very strong quarter on fee income as our efforts in building the Wholesale Banking and Treasury franchise are really beginning to bear fruit. Our year on year net Interest Income has been affected by our change of business mix, however the efforts in this area put us in a much better position for net earnings growth over the coming quarters. After peaking in the 3rd quarter of 2016 provisions have continued to come off in the last 2 quarters and our forward looking indicators give us comfort that this trend should continue during the course of 2017”.

England also commented “Other than the financial performance, the Bank has had tremendous success in a number of key areas. Our new digital banking platform launched in late 2016 has been very well received by our clients who can now enjoy the convenience of a single digital platform across all of their devices. We have seen significant improvement across the board in all our service quality indicators which has been acknowledged by receiving a number of highly recognised industry awards. During the 1st quarter we also signed agreements with both RAK SME and Dubai SME to work together to continue to support this crucial sector in the UAE economy. As the largest SME bank in the UAE, we remain firmly committed to helping small businesses grow and develop despite challenging conditions in the past 24 months. On the product side we continue to see exceptional traction on our recent product innovations such as our ‘Home in One’ Product which remains to be the only product of its type in UAE market, as well as our recently launched Fawrun deposit product from RAKislamic which has been extremely well received by our clients. The product and service pipeline for this year remains very strong, so expect to see continued product and service innovation from RAKBANK as the year progresses.”

Total income grew 2.6% compared to the last quarter of 2016, though declined 4.4% over the comparable period in 2016. Net interest income declined as the Bank continued to change its business mix of lending, though this was offset to an extent by strong fee income growth particularly from the Bank’s Treasury and Wholesale banking activities. Operating expenses were marginally up year on year, though were marginally down in comparison to the 4th quarter of 2016 as the Bank continued its focus on cost optimisation. Impairments continued their downward trajectory from the peak in Q3 2016, declining by 4.3% from Q4 2016 though were up 10.7% from the comparable quarter in 2016.

Total Assets rose by 0.8% to AED 42.9 billion compared to the end of 2016. This was due to an increase in Gross Loans and Advances of AED 647.9 million partially offset by decrease in investments of AED 123.0 million and a decrease in lending to banks by AED 112.6 million. Gross Loans and Advances grew by 5.7% year-on-year on the back of a healthy growth in Corporate Loans. Customer deposits grew by 1.3% to AED 29.8 billion compared to the end of 2016. This growth came mainly from an increase of AED 640.6 million in demand deposits partially offset by a decrease of AED 247.4 million in time deposits.

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 22.2% at the end of the first quarter of 2017. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of the quarter was 15.5% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 86.7% compared to 85.5% at the end of 2016.

- ENDS -

About RAKBANK

RAKBANK, also known as The National Bank of Ras Al Khaimah (P.S.C), is one of the UAE’s most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of Personal Banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKislamic, throughout its 38 branches and its Telephone and Digital Banking channels. RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

For media enquiries, please contact:

RAKBANK

Geraldine Dagher

[email protected]

RAKBANK successfully concluded its Annual General Meeting (AGM) today at its headquarters in the emirate of Ras Al Khaimah, where the distribution of a 30% cash dividend of the Bank’s paid-up capital to shareholders for the financial year ended 31 December 2016 was approved.

During the meeting, attendees unanimously approved all agenda items including the Bank’s balance sheet and profit and loss statements for the financial year ended 31 December 2016. Additionally, the AGM appointed Auditors for 2017 and determined their remuneration as well as approved the remuneration of the Board of Directors. Furthermore, during the AGM, the appointment of Mr. Kantic Dasgupta as a board member was ratified to replace the resigned board member, Mr. Allan Griffiths.

RAKBANK Chairman, HE Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2016. “The drop in 2016 profit was a result of the Bank’s significant increase in provisions due to our legacy SME loan portfolio, where the global and regional economic headwinds directly impacted the local economy and the performance of our business customers. While 2016 presented many obstacles, we also made substantial progress in the implementation of our three-year strategy, particularly regarding the diversification of our business. We are placing greater emphasis on optimizing synergies within the Group to increase efficiency while supporting the diversification of our revenue streams. By doing so, we aim to better serve our customers by offering them a seamless experience across the Bank’s diverse products and services through industry-leading service excellence, innovation, and simplicity. Furthermore, the new business mix, which includes lower margin and lower risk products, is expected to contribute to a steadier more sustainable growth.”

RAKBANK CEO, Peter England, said: “The Bank’s diversification strategy that commenced in early 2015 is showing exceptional results with solid growth coming in from both our Wholesale Banking and Treasury unit. We have recognised the need to move away from the Bank’s traditional legacy approach, achieving greater diversity in our balance sheet and income base to minimise the risk of focusing on specific sectors. The Bank effectively merged its online and mobile banking platforms to deliver a seamless digital experience, called RAKBANK Beyond, and we will continue to introduce innovative products and services as well as strengthen our branch and ATM network across the country. We have made significant progress in revamping our Personal Banking segments and have made substantial improvement in our revitalised Credit Card’s business. Additionally, the Bank revolutionized the market for home lending in the region with RAKBANK’s widely acclaimed ‘Home in One’ product that was successfully launched in August 2016.”

The National Bank of Ras Al-Khaimah (RAKBANK) announced the financial results for the year ended on 31 December 2016. RAKBANK’s consolidated net profit is at AED 663.0 million, a decrease of AED 742.3 million over the previous year. Total Assets stood at AED 42.5 billion, an increase of 4.7% compared to 31 December 2015. On a more positive note the Group’s* operating Profit before impairment losses grew by AED 10.0 million over 2015 mainly as a result of the bank’s cost optimisation strategy which commenced in early 2016.

“2016 has been a very challenging year for RAKBANK as we have seen a significant increase of provisions especially in our legacy SME loan portfolio,” said Peter England, RAKBANK Chief Executive Officer. “From 2008 until early 2015 the Bank’s core focus had been on SME lending and therefore it is understandable that RAKBANK has been significantly affected by the challenges in the SME sector brought about by a range of global and regional factors. We are however seeing some signs of improvement with provisions having peaked in the third quarter of 2016 and showing signs of improvement in the fourth quarter”, explained England.

Total Operating Income declined by AED 99.9 million to AED 3.8 billion mainly due to a decrease of AED 223.2 million in Net Interest Income predominantly due to the decline in the high margin SME Business loan book. Non-interest income grew by AED 123.3 million to AED 1.0 billion. This was mainly due to an increase of AED 132.5 million in income from investments, AED 17.7 million in insurance underwriting profit and AED 12.3 million in foreign exchange and derivative income. This was offset by a decrease of AED 27.2 million in commission income and AED 11.9 million in other income compared to 2015.

Operating costs were down by AED 109.9 million, a decrease of 7.4% from 2015. This was mainly due to a decrease of AED 68.3 million in staff costs, AED 21.7 million in outsourced staff costs and AED 11.1 million in depreciation costs. The Group’s cost to revenue ratio reduced to 35.6% compared to 37.5% for the previous year.

The provision for impairment in loans and advances increased by AED 752.3 million compared to previous year and this was due to larger payment defaults in the unsecured loan products, Business Banking and Commercial Banking segments. Total impairment provisions for the year was AED 1.8 billion compared to AED 1.1 billion in 2015.

“Overall, 2016 was a challenging year, however we made significant strides in advancing our three year Strategic plan. The Bank’s diversification strategy that commenced in early 2015 has been showing exceptional results with solid growth coming in our Corporate and Financial Institutions segments, as well as a very solid performance by our Treasury unit. We have recognised the need to move away from the Bank’s traditional legacy approach, achieving greater diversity in our balance sheet and income base to minimise the risk of focusing on specific sectors. The Bank successfully merged its internet and mobile banking platforms to deliver a seamless digital experience, called RAKBANK Beyond, and we will continue to introduce innovative products and services as well as strengthen our branch and ATM network across the country. We have completely revamped our Personal banking segments and have made significant progress in our revitalised Card business and further enhanced the market for home lending with RAKBANK’s widely acclaimed ‘Home in One’ product that was successfully launched in August of this year,” said England.

Total Assets rose by 4.7% to AED 42.5 billion compared to the end of 2015. This was due to an increase in Gross Loans and Advances of AED 1.2 billion, lending to banks which grew by AED 722.4 million and an increase in investments of AED 695.6 million. Customer deposits grew by 5.7% to AED 29.4 billion compared to 2015. This growth came mainly from an increase of AED 1.1 billion in demand deposits and AED 455.4 million in time deposits.

The Bank’s capital adequacy ratio as per Basel II before taking into consideration profit for the year 2016 stood at 21.8% by the year-end. This compares with 22.3% at the end of 2015, against a requirement of 12% set by the UAE Central Bank. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of the year was 16.9%, compared to 19.1% the previous year. The advances to stable resources ratio stood comfortably at 85.5% compared to 83.3% at the end of 2015.

Commenting on the results, RAKBANK’s Chairman H.E. Mohamed Omran Alshamsi noted: “While 2016 presented many obstacles, we made significant progress in the implementation of our three-year strategy, particularly with regards to diversifying our business. We are placing greater emphasis on optimizing synergies within the Group to increase efficiency while supporting the diversification of our revenue streams. The Bank’s progress in 2016 positions us well for sustained profitable growth. By doing so, we aim to better serve our customers by offering them a seamless experience across the Bank’s diverse products and services through industry-leading service excellence, innovation, and simplicity. We will also continue to strengthen our capacity to meet any future challenges. This has placed us in a strong position to grow in both the medium and long term. The Bank’s new business mix – which includes lower margin and lower risk products – is likely to contribute to a steadier more sustainable growth.”

-ENDS –

*RAKBANK is a public joint stock company with shares traded on the Abu Dhabi Securities Exchange (ADX) and comprises five subsidiaries, collectively known as “the Group”.

About RAKBANK

RAKBANK, also known as The National Bank of Ras Al Khaimah (P.S.C), is one of the UAE’s most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of Personal Banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKislamic, throughout its 38 branches and its Telephone and Digital Banking channels. RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

The National Bank of Ras Al-Khaimah (RAKBANK) today announced a consolidated net profit of AED 554.2 million for the nine months ended 30 September 2016. The Group’s operating profit increased by 6.1% to AED 1.9 billion as a result of reduction in operating cost by 11.7% offset by a marginal drop in total operating income.

Total operating income is AED 2.9 billion and is down by 0.8% due to a reduction in the net interest income and net income from Islamic financing by 6.1% that is partially offset by the increase in non-interest income by 17.4%. Non-interest income grew by AED 115.5 million, and this is mainly due to a growth of AED 113.9 million in investment income and AED 8.6 million in income from the insurance segment.

Operating expenses declined by AED 134.2 million during the first nine months of the year compared to the previous year due to various cost saving initiatives taken by the Group. The Group improved its Cost-to-Income ratio to 34.8% compared with 39.1% during the nine months of 2015, as it maintained its focus on cost optimization. The consolidated operating profit before provision for impairment increased by AED 110.2 million to AED 1.9 billion, while the total provisions for impairment for the nine months increased to AED 1.3 billion. As a result, the Bank recorded a net profit of AED 554.2 million for the nine months ended September 30, 2016.

“2016 has been a very challenging year for RAKBANK as we have seen a significant increase of provisions in our legacy SME Business loans portfolio,” said Peter England, RAKBANK Chief Executive Officer. “From 2008 until early 2015 the bank’s core focus had been on SME lending and therefore is it understandable that, as the largest SME bank in the UAE, we would be adversely affected by the very challenging market for SME’s due to a number of factors including a global economic slowdown,” explained England.

“On the positive side, the banks diversification strategy commenced in early 2015 has been showing exceptional results with solid growth coming in our Corporate and Financial Institutions business, as well as a very solid performance by our Treasury unit. On the SME front, we remain firmly committed to this business having completely revamped our entire front end and back end where we continue to book solid business here, albeit under a completely different set of risk parameters than used last year. We have commenced completely revamping our Personal banking business and have seen significant progress in our revitalised Card business and completely changed the market for home lending with RAKBANK’s widely acclaimed ‘Home in One’ product which was successfully launched in August of this year,” added England.

Total assets grew by AED 275.3 million to AED 40.8 billion as compared to 31 December 2015, mainly as a result of growth in gross loans and advances which were up by AED 463.7 million to AED 29.0 billion. Customer deposits grew by AED 544.9 million during the nine months of 2016 to AED 28.4 billion as compared to AED 27.8 billion as at 31 December 2015.

The Bank’s capital adequacy ratio as per Basel II requirement that comprises entirely of Tier 1 capital is 23.9%, compared with 24.4% at the end of the previous year. This is against a current minimum total capital ratio of 12.0% prescribed by the Central Bank in the UAE. At the end of this quarter, the regulatory eligible liquid assets ratio is 18.7% and advances to stable resources ratio stood comfortably at 84.3%. Total shareholder’s equity is AED 7.5 billion including the current year profit.

Commenting on the results, RAKBANK’s Chairman H.E. Mohamed Omran Alshamsi noted “We expect to see on-going challenges during the course of 2016 from the Bank’s legacy SME Business loans portfolio, however we see positive mid to long term benefits from the Bank’s strategy that focuses on a larger balance sheet catering to all customer segments in the UAE. The bank is well placed for growth with a very strong capital position and ample liquidity from a well-diversified depositor base. We remain committed to the SME sector, however the journey we commenced last year to re-enter the Wholesale banking market and revitalise our Personal banking business is beginning to bear fruit and is crucial to building a long term sustainable banking franchise.”

The National Bank of Ras Al-Khaimah (RAKBANK) today announced a consolidated net profit of AED 445.5 million for the half-year ended 30 June 2016. The Group’s operating profit increased by 12.0% to AED 1.3 billion as a result of an increase in total income by 3.2% and a reduction in operating cost by 10.0%. The total income grew due to an increase in non-interest income by 22.3% partly offset by a reduction in net interest income and net income from Islamic financing by 2.2%.

Operating expenses declined by 10.0% during the first six months of the year compared to the previous year due to various cost saving initiatives taken by the Group. Furthermore, the Group improved its Cost-to-Income ratio to 34.9% compared to 40.0% in the first half of 2015, as it maintained its focus on cost optimization. The consolidated operating profit before provision for impairment increased by 12.0% to AED 1.3 billion, while the total provisions for impairment for the first half increased to 835.4 million.

“The Group continues to record further improvement in year-on-year operating income and expense ratios. The marginal drop in net interest income was due to softening demand for SME loans and an increase in funding cost for the period which was not passed on to customers. With regard to strategy, our re-entry into wholesale business banking has opened the door for an opportunity in treasury business to work with our Wholesale Banking clients as well as Business Banking clients,” said Peter England, RAKBANK Chief Executive Officer. “Gross loans and advances increased by 5.5% year-on-year to AED 29.2 billion by the end of the first half of 2016 mainly in the Bank’s Wholesale Banking portfolio which grew by 148% to over AED 4 billion,” explained England.

Total assets grew by AED 345.0 million compared to 31 December 2015 to AED 40.9 billion mainly as a result of growth in gross loans and advances which were up by AED 683.4 million to AED 29.2 billion. Customer deposits grew by AED 183.8 million to AED 28.0 billion during the first half of 2016.

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the second quarter is 24.1%, comprising entirely of Tier 1 capital. This is against a current minimum total capital ratio of 12.0% prescribed by the Central Bank in the UAE. At the end of this quarter, the regulatory liquid assets ratio was 18.3% and advances to stable resources ratio was 86.8%. Total equity totalled AED 7.5 billion including six months’ profit.

“Looking ahead, we expect provisions to settle down in the second half of the year as the trends we are currently seeing indicate that the worst is over for our Business banking portfolio. We will continue with our strategy of diversifying our loan book, and focus on product innovation while strengthening our branch and ATM network across the country and launching additional digital banking solutions,” said Peter England, RAKBANK Chief Executive Officer.

During the first half of this year, RAKBANK was the first bank in the UAE to receive the ISO 9001:2015 version certificate for its continuous commitment to quality management within the Branches and Inbound Contact Centre. The Bank was also recognized by the Asian Banker as Best Internet Banking Product of the Year Award in the Middle East 2016 for the web chat authentication initiative.

About RAKBANK
RAKBANK, also known as the National Bank of Ras Al Khaimah, is one of the UAE’s oldest and most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of retail banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKBANK AMAL, throughout its 35 branches and its Telephone, Online, and Mobile Banking channels. RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

 

For media enquiries, please contact:
Geraldine Dagher
[email protected]

 

RAKBANK Group today announced a net profit of AED 250.0 million for the first three months ended 31 March 2016. Total income during the quarter grew by 6.2% year-on-year to AED 990.0 million as Net Interest Income and Income from Islamic products net of distribution to depositors were up by 1.5% to AED 744.3 million. Non-interest income grew by 23.6% year-on-year to AED 245.7 million on the back of income from the insurance segment, from investments, and from fees and commissions.

Operating Expenses were down by 9.4% from the same period last year as the Group maintained its focus on cost optimization. Combined with an increase in Total Operating Income, the Bank’s cost-to-income ratio dropped to 34.5% compared to 40.4% in the previous year. Operating Profit before Provisions increased by 16.8% to AED 648.3 million, however, provisions for Loan Impairments also increased over last year by AED 205.2 million due to higher loan provisioning in the Bank’s unsecured lending portfolios. The Bank remains well provisioned against loan losses with a conservative Loan Loss Coverage ratio of 83.5% compared to 84.6% at the end of the first quarter of 2015 which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The Bank has faced continued headwinds primarily in our Small Business Finance and SME portfolios due to the challenging business environment globally and locally. In the first quarter of 2016 we took the decision to move our SME products into a separate segment - Business Banking – so we can manage this sector of clients in a more holistic manner. The reorganization in no way indicates any change from our belief that SMEs are a vital part of the UAE economy and as the largest SME lender in the country we remain firmly committed to helping this segment grow, particularly during challenging times.”

The first quarter of 2015 also saw an escalation in the Bank’s diversification strategy as it continued to become increasingly active in the Wholesale Banking segment, which includes Commercial and Corporate Banking, Trade Sales, Financial Institutions Lending, and Asset Based Financing. This segment grew by AED 1,806.6 million or 140.1% year-on-year. The Bank’s Islamic Banking unit, Amal, continues to record growth with an increase of AED 559.5 million in its financing portfolio, up by 14.2% year-on-year. Gross Loans and Advances grew by 7.9% year-on-year to AED 28.8 billion across the Bank’s business segments. The Group’s Total Assets stood at AED 40.9 billion as at 31 March 2016.

The Bank’s Tier 1 ratio as per Basel II was 24.3% at the end of the first quarter of 2016 compared to 24.2% at the end of the first quarter of 2015, against a requirement of 12% set by the UAE Central Bank. The regulatory eligible liquid asset ratio at the end of the quarter was 17.8%, compared to 19.1% at the end of 2015, and advances to stable resources ratio stood comfortably at 82.5% compared to 83.3% at the end of 2015. “We find that our level of capital provides us with ample room for growth in the future particularly as we look to further diversify our balance sheet across all segments of clients in the UAE. We expect the first half to remain challenging for us, however we will continue to focus on driving core business growth, enhancing efficiency, and diversifying sources of income,” added England.

 

About RAKBANK
RAKBANK, also known as the National Bank of Ras Al Khaimah, is one of the UAE’s oldest and most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of retail banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKBANK AMAL, throughout its 35 branches and its Telephone, Online, and Mobile Banking channels.

RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). According to The Banker's Top 1000 World Banks 2015, RAKBANK is the 1st by Return on Assets in the UAE and the Arab World.

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

 

RAKBANK Contact:
Lamis Daoud
[email protected]

RAKBANK successfully concluded its Annual General Meeting (AGM) today at its headquarters in the emirate of Ras Al Khaimah, where the distribution of 50% cash dividends to shareholders for the financial year ended 31 December 2015 was approved. During the meeting, attendees unanimously approved all agenda items, including the amendment to the Bank's Articles of Association in accordance with the requirements of the Commercial Companies Law No. (2) for 2015. Furthermore, during the AGM, the major shareholder proposed the nomination of Mr. Ahmed Abdulkarim Julphar as a board member to replace Mr. Hamad Abdulaziz Al Saqr who resigned last December 2015. This item was also approved.

RAKBANK Chairman, HE Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2015. “The 3.4% year-on-year decline in profit in 2015 was a result of global and regional economic headwinds impacting the local economy and the performance of our business customers. Therefore, we focused throughout the year on undertaking measured investments in new growth areas to sustain healthy levels of profitability. In addition to diversifying income streams, the Group placed greater emphasis on building specialization and optimizing synergies within its functions. We also made a strong commitment in 2015 to regain our position as the pre-eminent bank in the emirate of Ras Al Khaimah.”

RAKBANK CEO, Peter England, said: “In 2015, while building on our strong foothold in Retail Banking, we also increased our penetration into larger businesses to grow our Commercial and Corporate Banking portfolio, Trade Sales, Financial Institutions Lending, and Asset Based Financing. In addition, we began working towards boosting activity in our Treasury segment. We will continue to explore new business lines and enhance internal processes throughout 2016. We are aware of changing market conditions that lie ahead and will continue to adjust our risk appetite accordingly.”

About RAKBANK
RAKBANK, also known as the National Bank of Ras Al Khaimah, is one of the UAE’s oldest and most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of retail banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKBANK AMAL, throughout its 35 branches and its Telephone, Online, and Mobile Banking channels.

RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). According to The Banker's Top 1000 World Banks 2015, RAKBANK is the 1st by Return on Assets in the UAE and the Arab World.

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

RAKBANK Contact:
Lamis Daoud
[email protected]

Amended and Restated

Articles of Association of

The National Bank of Ras Al Khaimah

“PUBLIC JOINT STOCK COMPANY”

The National Bank of Ras Al Khaimah was incorporated as a public joint stock company by virtue of Amiri Decree No. 11/76, and its amendments, dated 15 June, 1976 issued by His Highness The Ruler of the Emirate of Ras Al Khaimah.

And whereas Federal Law No (2) for the year 2015 concerning commercial companies issued on 25/03/2015 provided for the cancellation of Federal Law No (8) for the year 1984 concerning commercial companies and its amendments and imposed on public joint stock companies to amend their articles to comply with its provision

On 17th April 2016, the General Assembly was held and approved by a Special Resolution to amend the articles of association of the company and restate them in accordance with the Federal Law No 2 for the year 2015. The articles shall read as follows:

Therefore, it has been agreed that the following shall be the Articles of Association of the company:

CHAPTER ONE

In these Articles the following expressions shall where the context allows have the meanings set opposite each of them respectively:

‘Articles’ or ‘these Articles’, means these articles of association as amended from time to time.

‘Bank’, has the meaning set out in Article (1).

‘Board’, means the board of directors of the Bank.

‘Board Secretary’, has the meaning set out in Article (19-2).

“Central Bank” means the Central Bank of the United Arab Emirates.

‘Central Bank Law’, means Federal Law No. (10) of 1980 in respect of the Central Bank, the Monetary System and Organization of Banking and its amendments, and as amended, updated or replaced from time to time.

‘Conflict of Interest’: A situation in which the partiality in taking a decision is affected due to a personal, material or moral interest, whereby the interests of the Concerned Parties interfere or seem to interfere with the interests of the company as a whole, or upon taking advantage of the professional or official position in any way with a view to achieving a personal benefit.

‘Control’ The power to influence or control – directly or indirectly – the appointment of the majority of the members of the board of directors of a company or the decisions issued by the board or by the general assembly of a company through the ownership of a percentage of shares or through an agreement or arrangement leading to the same effect.

 

‘Concerned Parties’

- The chairman and members of the Board of Directors and members of the senior executive management of the Bank; companies where any of the aforesaid have a controlling share; and parent, subsidiary, sister or allied companies of the Bank.

- The relatives of the chairman, a member of the Board of directors or of the senior executive management up to the first degree.

- The natural person or corporate body who/which was during the year preceding that of the trading a shareholder holding 10% or more in the Bank or a member of its Board of Directors or of its parent or subsidiary company.

- The person who has control over the Bank.

‘Cumulative Voting’, means the voting where each shareholder has a total number of votes equal to the number of shares he owns such that the shareholder will give all his votes to one candidate or distribute them among several candidates, provided that the number of votes given to his chosen candidates does not exceed the number of votes belonging to the shareholder.

‘General Meeting’ or “General Assembly”, means the Bank’s shareholders general assembly meeting held as per the provisions of Chapter 6 of these Articles.

‘Independent Directors’, means any Director whose character and judgment are viewed by the Board of Directors as being independent and free of factors which affect or may affect the Director’s judgment, and who meets any other criteria for independence as may be set from time to time by the relevant authorities or the Board.

‘Law’, means Federal Law No 2 of 2015 concerning the Commercial Companies as amended or updated from time to time.

‘Non Executive Directors’ means Directors who are not dedicated on a full time basis to the management of the Bank or do not receive a monthly or annual salary from the Bank. The remuneration received as a Board member shall not be deemed a salary.

‘Relevant Competent Authority(ies)’, means as the case may require the party entrusted in the Emirate of Ras Al Khaimah with the implementation of the provisions of the Law and/or, the Central Bank and/or, the SCA and/or any other governmental entity or authority, whether federal or local, competent to with or concerned by the matter at stake by virtue of the applicable laws and regulations .

‘SCA’, means the Securities and Commodities Authority of the State.

‘Special Resolution’ means a resolution that has been passed by shareholders holding at least 75% of the shares represented in the General Meeting.

‘State’ or ”UAE, means the United Arab Emirates.

INCORPORATION

Article (1)

The company shall operate under the name “The National Bank of Ras Al Khaimah - Public Joint Stock Company”.

Article (2)

The Bank’s head office and legal domicile shall be situated in the city of Ras Al Khaimah, Emirate of Ras Al Khaimah, United Arab Emirates. However, the Board shall have the right to establish branches, agencies and representative offices thereto within and outside the State.

Article (3)

The term of the Bank shall be ninety nine (99) calendar years commencing on the date of its incorporation on 15 June 1976. Such term may thereafter be renewed for other similar successive terms unless otherwise resolved by virtue of a Special Resolution.

Article (4)

The objects for which the Bank is incorporated are generally to carry on in the State and, subject to the consent of the Central Bank and any other Relevant Competent Authority, in any foreign jurisdiction the business of commercial banking in all its aspects, and to transact and do all matters and things incidental or conducive thereto or which are usually carried on in connection with the business of commercial banking, including in accordance with the principles of Islamic Shariah, as permitted under the laws of the UAE and in particular (but without prejudice to the generality of the foregoing):

1. To receive funds from the public in any form under demand or notice, or time deposits, on current or deposit account or otherwise on any terms as the Bank may approve or carry on the placement of debt instruments or deposit certificates to be used, in whole or in part, for the Bank’s account and at its risk for granting loans and advances.

2. To deposit, lend or advance money or property, with or without security, provide credit and generally to make or negotiate loans and advances of every kind.

3. To receive the benefit of personal or corporate guarantee, cash securities, or liens, security, mortgage, pledge, or charge of movable and immovable assets or otherwise in connection with loans and advances of every kind made in the course of its business.

4. To carry on any operations relating to the issue and collection of cheques.

5. To undertake transfers to and transactions with other banks and financial institutions on behalf of customers or for its own account.

6. To issue and transact business in respect of all types of bank cards, including and debit and credit cards.

7. To grant, issue, negotiate and in any manner deal with letters of credit, travellers’ cheques and money orders and drafts and other forms of credits and instruments of every kind.

8. To draw, make, accept, endorse, grant, discount, acquire, subscribe or tender for, buy, sell, issue, execute, guarantee, negotiate, transfer, hold, invest or deal in, honour, retire, pay, secure or otherwise dispose of obligations and financial instruments of every kind (whether transferable, convertible, negotiable or not).

9. To issue letters of guarantee and bank guarantees and secure direct and collateral guarantees thereof, and to otherwise guarantee the obligations and contracts of customers and others.

10. To issue bonds (notes) in accordance with the Law and the exceptions provided for under these Articles.

11. To buy, sell, deal and otherwise trade in bullion, specie, precious and other metals, foreign exchange and commodities (including futures) of every kind.

12. To open accounts with local and foreign banks and deal with them, and to act as correspondent and agent for local and foreign banks and financial institutions.

13. To collect, hold and transmit money and securities and act as agents for the receipt or payment of money or for the receipt or delivery of securities and documents and to establish, maintain or participate in any kind of system for the transmission of funds.

14. To receive on deposit or for safe custody or otherwise documents, cash, securities and valuables of every description.

15. To organise and manage loans whether extended to the Bank’s account or jointly with other banks or for third parties’ account and issue loan and security documents.

16. To finance or assist in the financing of the acquisition, hire, lease or sale of real and personal property of every kind, and the provision of services in connection therewith, whether by way of personal loan, hire purchase, instalment finance, deferred payment or otherwise.

17. To acquire by assignment or otherwise debts or rights owing to any person or company and to collect such debts and exercise such rights.

18. To promote, effect, negotiate, and carry on underwriting activities in relation to any public or private issuance of securities of any company or otherwise, guarantee, underwrite, secure the subscription or placing of, subscribe or tender for or procure the subscription of (whether absolutely or conditionally), participate in, manage or carry out, on commission or otherwise, any issue, public or private, of the securities of any company, and to lend money for the purposes of any such issue, after obtaining all required approvals from the relevant authorities.

19. In general, to invest the Bank’s funds not immediately required for the purposes of its business in a manner consistent with commercial banking operations and as may be permitted by the laws and regulations in force, whether such investment is made solely by the Bank or jointly with third parties.

20. To pay for any property or rights acquired by the Bank, either in cash or fully or partly paid‑up shares (and subject to the Law and to obtaining approvals from the relevant authorities) with or without preferred or deferred or special rights or restrictions in respect of dividend, repayment of capital voting or otherwise, or by any securities which the Bank has power to issue, or partly in one mode and partly in another, and generally on such terms as the Bank may determine.

21. To accept any form of payment for any property or rights sold or otherwise disposed of or dealt with by the Bank.

22. To purchase, own, acquire and manage any immovable or movable property as necessary or desirable for the purposes and operations of of the Bank, including the conduct of its business operated in accordance with the principles of Islamic Shariah or settlement of debts.

23. To sell, mortgage, charge, improve, manage, develop, turn to account, exchange, let or rent, grant royalty rights, receive share of profits or otherwise, grant licences, easements, options, servitudes and other rights in or over, and in any other manner deal with or dispose of, all or any part of the undertaking, property and assets (present and future) of the Bank for no consideration or any such consideration as the Bank may deem fit.

24. To advertise, market and sell the products of the Bank and of any joint venture, company, firm or person with whom the Bank carries on business.

25. To enter into any arrangements with any government or authority or person and to obtain from any such government or authority or person the benefit of any legislation, orders, rights, privileges, franchises and concessions and to carry out, exercise and comply with the same.

26. To borrow and raise money and to secure or discharge any debt or obligation in any manner and in particular (without prejudice to the generality of the foregoing and so far as permitted by law) by mortgages of or charges upon all or any part of the undertaking, property and assets (present and future) and uncalled capital of the Bank or by the creation and issue of securities.

27. To enter into any guarantee, contract of indemnity or suretyship and in particular (without prejudice to the generality of the foregoing) to guarantee, support or secure, with or without consideration, whether by personal obligation or by mortgaging or charging all or any part of the undertaking, property and assets (present and future) and uncalled capital of the Bank or by both such methods or in any other manner, the performance of any obligations or commitments of, and the repayment or payment of the principal amounts of and any premiums, interest, dividends and other monies payable on or in respect of any securities or liabilities of, any person, including (without prejudice to the generality of the foregoing) any company which is for the time being a subsidiary or a holding company of the Bank or another subsidiary of a holding company of the Bank or otherwise associated with the Bank.

28. To enter into any partnership or joint-purse arrangement or arrangement for sharing profits, union of interests or co-operation with any company, firm or person carrying on or proposing to carry on any business within the objects of the Bank, and to guarantee the contracts or liabilities of, or the payment of the dividends, interest or capital of any shares, stock or securities of and to subsidise or otherwise assist any such company.

29. To establish, promote, concur in establishing or promoting any other company whose objects shall include the acquisition and taking over of all or any of the assets and liabilities of the Bank or the promotion of which shall be in any manner calculated to advance directly or indirectly the objects or interests of the Bank.

30. To purchase or otherwise acquire all or any part of the business, property and liabilities of (i) any company carrying on any business within the objects of the Bank, or (ii) any person or firm carrying on any business within the said objects, and to conduct and carry on, or liquidate and wind up, any such business.

31. To amalgamate with any other company whose objects are or include objects similar to those of the Bank, whether by sale or purchase (for fully or partly paid-up shares or otherwise) of the undertaking, subject to the liabilities of this or any such other company as aforesaid, with or without winding-up, or by sale or purchase (for fully or partly paid-up shares or otherwise) of all or a controlling interest in the shares or stock of this or any such other company as aforesaid, or by partnership, or any arrangement of the nature of partnership, or in any other manner.

32. As part of its banking business, to undertake the office of trustee, custodian, agent, treasurer or registrar and to undertake and execute trusts of all kinds.

33. To carry on any other business or activity, or to enter into any contracts and take all other legal, commercial, financial and administrative acts which may seem to the Board capable of being advantageously carried on in connection or conjunction with or as ancillary to any of the foregoing businesses or which the Board may consider expedient with a view to rendering profitable or more profitable or enhancing directly or indirectly the value of the Bank’s undertaking or any of its property or assets, and to do all such other things as the Board may consider incidental or conducive to the attainment of the Bank’s objects.

34. To manage investments including the management of securities portfolios for itself or the benefit of third parties or the management of collective investment schemes or funds or similar investment vehicles.

35. To conduct research including conducting the business of financial consultation and financial analysis and providing opinions and recommendations on securities and investments based on economic and financial research for publication or dissemination to the public or to customers.

CHAPTER TWO

THE CAPITAL

Article (5)

1. The issued share capital of the Bank is AED 1,676,245,428 (One billion six hundred seventy six million two hundred forty five thousand four hundred twenty eight Dirhams) divided into 1,676,245,428 (One billion six hundred seventy six million two hundred forty five thousand four hundred twenty eight) equal shares having a nominal value of AED 1 (one Dirham) each.

2. The authorized share capital of the Bank is AED 3,352,490,856 (Three billion three hundred fifty two million four hundered ninety thousand eight hundred fifty six Dirhams).

3. The percentage of shares owned by any person, firm or company, whether public or private who are not nationals of the State, shall not exceed 40% of the share capital of the Bank.

CHAPTER THREE

CAPITAL AMENDMENT

CAPITAL INCREASE

Article (6)

1. It shall be permissible by a Board resolution to increase the issued share capital of the Bank within the limits of the authorized capital and pursuant to the terms set out out by the SCA and any other Relevant Competent Authority, provided that its issued capital has been paid up in full. The Board resolution shall determine the amount of the increase in the issued share capital and the price at which the new shares shall be issued

2. It shall be permissible by a Special Resolution to increase the authorized share capital of the Bank subject to obtaining the required approvals from the SCA and any other Relevant Competent Authority and provided that the Bank’s issued capital has been paid up in full.

3. The nominal value of each new share shall be equal to the nominal value of each original share. It is permissible to add an issue premium to the nominal value of the shares conditionally on the approval of the SCA. The said premium shall be added to the legal reserve even though the latter would thereby exceed half of the capital.

4. Subscription for the new shares shall be governed by the regulations concerning subscription for the original shares.

5. The Bank may increase its issued share capital and shareholders shall have a preemption right to subscribe in the new shares.

6. Despite the forementioned, the preemption right shall not be trigerred in the following cases:

 

 

(a) for the purpose of employees’ incentive schemes; (b) for the purpose of the entry of a strategic partner; or (c) for the purpose of capitalizing the Bank’s debts; provided that (a) the Bank obtains all the required approvals from the relevant authorities and (b) any such increase has been approved by a Special Resolution.

CAPITAL REDUCTION

Article (7)

1. On the recommendation of the Board and after consideration of the auditor’s report and subject to the approval of the SCA and any other Relevant Competent Authority, the Bank’s issued share capital may be reduced by a Special Resolution of the General Meeting in either of the following two circumstances:

If the issued share capital exceeds the Bank’s requirements.

If the Bank has sustained a loss which cannot be made up from future profits.

2. The issued share capital shall be reduced by any of the following methods, as may be approved by Special Resolution of the General Meeting:

a) Reducing the nominal value of each share either by refunding the same to the shareholders or by releasing them from their liability in respect of all or part of any amount unpaid thereon;

b) Reducing the value of the shares by cancelling part thereof equivalent to the losses;

c) Cancellation of a number of shares equivalent to the size of the reduction; or

d) Purchase by the Bank of a number of shares equivalent to the portion to be reduced and their destruction.

e) The Special Resolution of the General Meeting shall specify which method is to be applied in the reduction.

CHAPTER FOUR

INSTRUMENTS

INSTRUMENTS ISSUED BY THE BANK:

SHARES AND LOAN DEBENTURES

1- SHARES

Article (8)

The Bank’s capital consists of equal shares. The shares shall have equal rights and be subject to equal obligations.

Each share shall entitle its holder to an equal right to the ownership of the assets of the Bank at the time of liquidation and in the dividends distributed as outlined in these Articles and to attend General Assemblies and vote on resolutions passed in those General Assemblies.

Article (9)

The Bank shall not issue bearer shares. Shares shall be negotiable.

Article (10)

Shares shall be indivisible. If a share ownership passes by inheritance to more than one heir or is held by more than one person, then they shall elect from amongst themselves a person to represent them towards the Bank, and those persons shall be held jointly liable for the liabilities arising from ownership of the share.

Article (11)

The Bank shall not release a shareholder from his obligation to pay up the value of a share and this obligation may not be set off against any right which a shareholder may have against the Bank.

Article (12)

The shareholders’ liability in the Bank shall be limited to the unpaid amount (if any) for their shares and their liability may not be increased without their unanimous consent.

A shareholder may not claim the repayment of what he has paid to the Bank for his share in the capital.

Article (13)

1. The Board shall maintain a register of shareholders in whatever form permitted or required by the Law, including in electronic form, as per the clearing and depositing system records of the financial market on which the Bank’s shares are listed.

2. The Bank’s shares shall be traded on the financial markets on which the Bank’s shares are listed including Abu Dhabi Securities Exchange pursuant to the rules and regulations of the said markets.

3. Dividends payable on each share shall be paid in accordance with applicable laws, rules and regulations and to the last holder entered in the share register of the Bank on the applicable record date who shall solely be entitled to receive the amounts due on the share, whether in the form of dividends or as a new share in the assets of the Bank.

Article (14)

These Articles and the resolutions of the General Meetings shall be binding on each shareholder.

Article (15)

It shall not be permissible for shareholder’s heirs or creditors for any reason to seek an attachment of the Bank’s books or properties, nor request the division or the sale thereof nor to intervene in whatever manner in the management of the Bank, and in the exercise of their rights they shall rely on the Bank’s inventories, accounts and the resolutions of the General Meeting.

Article (16)

Where the Bank’s issued shares are not fully paid-up, the unpaid balance of the nominal amount shall become payable within a maximum period of three years from the date of the decision of the Relevant Competent Authority approving the issue of shares, on the day and in the manner determined by the Board of Directors, which date shall be published at least 15 (fifteen) days in advance in two local newspapers, one of them in Arabic.

If a shareholder fails to pay an instalment of the share value on its due date, the Board shall provide written notice to the shareholder by means of a registered letter requesting him to pay the due instalment. If the shareholder fails to make the payment within (30) thirty days of the date of the letter, the Bank shall be entitled to sell the shares by public auction, and to recover from the proceeds of sale the arrears of instalments together with expenses . The balance of share sale proceeds shall be paid to the shareholder. The Bank shall have the right of recourse to the shareholder’s own funds if the proceeds from the sale of the forfeited shares do not satisfy the Bank’s rights.

The Bank shall cancel the share under forfeiture, and grant the purchaser a new share bearing the number of the cancelled share, and the same shall be recorded in the register of shareholders together with the name of the new shareholder.

2- LOAN DEBENTURES

Article (17)

Without prejudice to Articles (229) and (230) of the Law and other laws and regulations issued by the Relevant Competent Authorities, the Bank, by a Special Resolution, may decide to issue any type of bonds or Sukuk. The resolution shall determine the type, value, conditions and terms of the issue, convertibility into shares.

Issuance of bonds convertible into shares shall require pre-approval of shareholders by Special Resolution.

CHAPTER FIVE

BOARD

Article (18)

1. The management of the Bank shall be vested in the Board which shall be comprised of seven (7) members.

2. A majority of the Board shall consist of Non-Executive Directors. At least one-third of the members of the Board shall be Independent Directors. Furthermore, the majority of members of the Board shall be nationals of the State.

3. Members of the Board shall be elected by resolution of the General Meeting by means of Cumulative Voting through secret ballot, subject to the approval of the Relevant Competent Authorities and in accordance with the applicable conditions and standards set out by the Relevant Competent Authorities.

 

4. The Company shall prepare a list of the nominees to the Board membership and send the same to the Department of Economic Development in good time time prior to the scheduled meeting of the General Assembly, for the prupose of verifying the integrity, good reputation, competence and compliance with the corporate governance standards of the nominees of the nominees. Otherwise, any procedure shall be deemd void. Votinmg shall be limited to the nominees approved by the Department of Economic Development in Ras Al Khaimah and the other Relevant Competent Authorities.

Article (19)

1. Subject to paragraph (3) of this Article, Board members shall hold office for a term of (3) three years, but shall be eligible for re-election or re-appointment, as the case may be, on each occasion.

2. The Board shall appoint, from outside their members, a Board Secretary to perform the Board’s secretarial works in addition to any other duties that may be entrusted to him.

3. The Board may appoint a Board member to fill a vacancy arising in the Board. Such appointment shall be presented to the following General Meeting for approval and confirmation.

4. If the number of positions becoming vacant during the year reaches one quarter or more of the members of the Board, the Board must call a General Meeting, to be held no later than (30) thirty days from the date of the last position becoming vacant, for the purpose of electing persons to fill the vacant position.

5. The General Meeting may appoint a number of experienced persons as Board members other than the shareholders of the Bank, provided such members of the Board shall not exceed one third (1/3) of the number of members, in accordance with the terms and conditions set out by the SCA in this respect.

6. The Board shall elect a chairman from one of its members who shall be a national of the State. The Board members shall also elect from among their number a vice-chairman who shall act as the chairman in the latter’s absence. Election of the chairman and vice chairman shall be by secret ballot. The chairman shall represent the Bank before the courts and third parties. The chairman of the Board shall implement the Board resolutions and the vice chairman shall act for the chairman in his absence or when he is unable to attend.

Article (20)

The Board of Directors may appoint from amongst its members a managing director or amongst others a chief executive officer, or general manager of the Bank, provided that he must not be a managing director, a chief executive officer or a general manager of another company. The Board shall specify his/their authorities and remunerations.

The Board of Directors may delegate some of its powers and authorities relating to the day-to-day management of the Bank to the chairman, the vice chairman, the chief executive officer, the managing director, the general manager (if applicable) or any other person or committees as it may determine in its absolute discretion. Such delegation may be made for such periods and upon such terms and conditions and with such powers and authorities as the Board may from time to time determine in its absolute discretion.

The Board of Directors shall form the permanent committees and systems required under the applicable laws and regulations issued by the Relevant Competent Authorities, such as the audit committee, the follow up and remuneration committee and the internal control system. The Board may as well establish any specialized committee to monitor or study or implement any matters as he deems suitable.

Procedures for forming such committees shall be laid down by the Board of Directors, including mission, term of office, powers and method used by the Board of Directors to monitor such committees. A committee shall submit a written report to the Board specifying with absolute transparency its actions, findings and recommendations. A regular follow up of the committees shall be ensured by the Board of Directors to verify their adherence to their assignments.

Article (21)

1. The Board shall have full power and authority to do everything which may be required or desirable for the Bank’s management and operation and conducive to attaining its objects. Such powers and authorities vested in the Board shall not be limited except as provided by laws of the State, the resolutions of the relevant authorities, these Articles or the resolutions of the General Meeting.

2. Without prejudice to the Law and the implementing regulations issued by the SCA, the Board may, enter into loans for any term, dispose of or mortgage any of the Bank’s real estate or other property and assets, release the Bank’s debtors and make agreements and arrangements for arbitration without the approval of a General Meeting.

Article (22)

1. The Board shall hold its meetings at the head office of the Bank or at any other place deemed appropriate by the Board as often as the need may arise and in any event not less than (4) four times per year. Board meetings may be held through audio or video conferencing facilities or any other forum whereby each member can effectively participate in such meetings, according to the terms set out by the SCA.

2. Board meetings shall be convened upon a written notice by the chairman, the vice chairman, or the Board Secretary on their behalf. Board Meetings may also be convened by the chairman or the Board Secretary on the request of (2) two members of the Board.

3. Notice of Board meetings together with an agenda and sufficient relevant supporting information to enable the Board to reach informed decisions, shall be provided to the members of the Board at least (1) one week before the meeting is due to be held. Each member of the Board shall have the right to add any matter that he deems appropriate to the agenda.

4. No meeting of the Board shall be valid unless a majority of its members are in attendance or represented. It shall be permissible for Board members to appoint another member of the Board to vote on his behalf in which case, such other member shall have two (2) votes, provided that a member of the Board of Directors may not act on behalf of more than one member and that at least half of the Board members are present in person.

5. Resolutions of the Board shall be adopted by majority of the Board members present or represented, and if there are an equal number of votes the chairman or acting chairman shall have a casting vote. It shall not be permissible to vote by correspondence.

6. Notwithstanding anything to the contrary in these Articles, without prejudice to the minimum number of Board meetings required above, a written resolution of the Board of Directors signed by all the members of the Board of Directors shall be deemed valid and enforceable as if it were a resolution taken at a meeting of the Board of Directors duly notified and convened, under the terms and conditions set out by the SCA in this respect.

7. The minutes of the meetings and resolutions of the Board shall be retained by the Board Secretary and filed in a special register. All the minutes recorded in the register shall be signed by the members who attended the meeting and by the Board Secretary and copies of such minutes shall be provided to each member of the Board. Qualifications, controversial opinions and objections arising during the course of a Board meeting shall all be recorded in the minutes of the meeting in which the qualification, controversial opinion or objection was raised.

8. The chairman, Board members, the chief executive officer, the managing director, the general manager, the Board Secretary, or the Bank’s general counsel are each authorised by the Bank individually to provide certified copies of extracts of the resolution taken from the minutes of any Board meeting, by signing such extracts, identifying that it is a certified true copy of the original and including the date that the certification is provided. Any party dealing with the Bank may rely absolutely on such certified copy as being a true and accurate copy of the original document.

Article (23)

A member of the Board shall cease to be a director if he resigns from his office as a director. A member of the Board shall be deemed to have resigned his membership in the following cases:

1. If he fails to attend (3) three consecutive Board meetings or (5) five non consecutive meetings, during the term of the Board, without an excuse acceptable to the Board;

2. If he holds in his personal capacity or as a representative of any corporate person the position of a member of Board or management with any other commercial bank operating in the State that has not been approved in writing by the Board prior to appointment;

3. If he is convicted of any crime or other offence involving dishonesty or immorality unless he is reinstated or receives an amnesty from the competent authorities, if amnesty is applicable for such offences;

4. If he is declared bankrupt, insolvent or enters into a compromise with creditors;

5. If he is dismissed; or

6. For any other reason provided for under the applicable laws and regulations.

Article (24)

The Bank shall be bound by the actions of the Board chairman, vice chairman, the chief executive officer, the managing director, the general manager, other members of the Board, members of the senior management, officers and employees of the Bank to whom authority has been duly given within the limits of their authority. The the Board chairman, vice chairman, the chief executive officer, the managing director, the general manager, other members of the Board, members of the senior management, officers and employees of the Bank to whom authority has been duly given shall not be held personally liable in connection with the Bank’s undertakings by reason of them having carried out their duties to the extent that they do not exceed the scope of their authorities.

Article (25)

The chairman and directors of the Board shall be responsible to the Bank, the shareholders and third parties for all acts of fraud and misuse of power and for any violation of the Law or any other law or of these Articles and for mismanagement.

Article (26)

The remuneration of each of the members of the Board of Directors for the ending financial year shall be determined as a lump sum pursuant to a recommendation by the Board of Directors and the approval of the General Assembly. Furthermore, the Bank may reimburse any member of the Board of Directors or assign further remuneration or monthly salary in amounts to be determined by the Board of Directors if such member is a member of a committee or makes extra efforts or additional work to serve the Bank in addition to his duties as a member of the Board of Directors. In all events, the remuneration may not exceed 10% of the net profit for the ending financial year after depreciation and reserves were deducted.

Article (27)

The General Meeting shall have the right to dismiss any or all elected members of the Board, and open the nomination for Board membership and elect new members in replacement of them. A director who is dismissed under this Article shall not be eligible to become a director of the Bank for a period of (3) three years after his dismissal.

Article (28)

A director should disclose to the Board any personal interest he has in a matter which relates to or conflicts with the affairs of the Bank that are submitted for Board approval, as soon as the director becomes aware of their interest. The disclosure should be recorded in the minutes of the meeting and the director may not vote on that matter, in accordance with the applicable laws and regulations.

Article (29)

No director or manager of the Bank may, without the yearly renewable permission from the annual General Assembly, undertake the management of another commercial bank or be a member on its board.

Article (30)

Subject to the Central Bank Law and the rules and regulations issued by the Central Bank, the Bank may not grant loans, advance funds or grant credit facilities to the Board members, managers or similar executives, or grant any securities in relation to loans given to them without prior license from the Central Bank’s board of directors. Such license must be renewed annually. Such restriction shall not apply in the case of commercial papers discounting, bank guarantees or letter of credits.

Article (31)

The Bank shall not, without the Board of Directors’ approval, conclude with the Concerned Parties transactions exceeding 5% of the share capital of the Bank and shall not, without the General Assembly’s approval, conclude such transactions if they exceed the above percentage. The transaction shall be valuated by an assessor approved by the SCA. The auditor shall include state in his report conflicting transactions and financial transactions which took place between the Bank and Concerned Parties and the procedures which were followed in this respect.

CHAPTER SIX

GENERAL MEETING

Article (32)

A General Meeting of the shareholders shall be convened by the Board at least once a year within the four (4) months following the end of the financial year at such time and place in the State as the Board shall decide subject to the approval of the Relevant Competent Authorities. Such General Meeting shall be referred to in these Articles as the Annual General Meeting.

The Board may also call a General Meeting to be held as and when deemed necessary.

A reference in these Articles to a meeting or General Meeting shall refer to an Annual General Meeting and any other convened meeting of the shareholders, unless otherwise specified.

Article (33)

When requested to do so by the auditors, the Board shall convene a General Meeting. If the Board fails to convene the General Meeting within (5) five days of the auditors’ request, the auditors may directly convene the General Meeting. The General Assembly shall meet within a period of not less than 15 (fifteen) days and not exceeding 30 (thirty) days from the date of invitation.

Any shareholder or group of shareholders who together hold at least 20% of the Bank’s issued share capital, may request the Board to convene a General Meeting. The Board of Directors shall call for a General Assembly within 5 (five) days from the date of submitting the request. The General Assembly shall meet within a period of not less than 15 (fifteen) days and not exceeding 30 (thirty) days from the date of invitation

The SCA, after (5) five days from its request to the Board of Directors, may call for the General Meeting upon the occurrence of anyone of the following events:

1. If (30) thirty days have lapsed from the date specified in Article (32) above (i.e. (4) four months after year end) without the General Meeting having been called;

2. If the number of members of the Board falls below the minimum number required for quorum at its meetings;

3. If at any time there appears to have been a violation of the law or the Articles or mismanagement of the Bank; or

4. If the Board fails to call for a General Meeting despite the call from one or more shareholders representing 20% of the issued share capital of the Bank.

The SCA and other Relevant Competent Authorities may send one or more representatives on their behalf to attend the General Meeting as an observer, with no right to vote. .

Article (34)

Notices of General Meetings shall be given to shareholders, after obtaining SCA’s approval, by publishing a notice of the meeting and the agenda in two (2) daily local newspapers, one of which is published in the Arabic language, and by registered mail to each shareholder (and, in the case of the Annual General Meeting, together with the Board’s report and auditor’s report), of which notice shall be given at least (15) fifteen days before the date specified for holding the meeting. A copy of the notice and agenda of the same shall also be sent to the SCA and the Department of Economic Development in Ras Al Khaimah within the same time frame.

A shorter notice is valid, if approved by a number of shareholders representing 95% of the share capital of the Bank.

Article (35)

The General Meeting shall be authorized to review all matters relating to the Bank. In the Annual General Meeting matters stipulated in Article (36) below shall be included for review. The General Meeting shall not consider matters if not mentioned in the agenda. However, significant matters discovered during the meeting may be deliberated at a General Meeting.

If the SCA or shareholders holding at least ten percent (10%) of the Bank’s issued share capital express a request for the inclusion of specific matters on the agenda before the commencing the discussion of the agenda of the General Meeting, the Board shall be obliged to comply with the aforementioned request, failing which the General Meeting shall have the right to resolve to discuss the matters in question. The SCA may issue a resolution to determine the terms and conditions for adding a new item to the agenda of the General Meeting.

Article (36)

The following matters shall be included in the agenda of the Annual General Meeting:

1. The report of the Board on the Bank’s activities and its financial position during the preceding year, and the report of the auditors and the approval thereof.

2. A discussion of the Bank’s balance sheet and profit and loss account and the approval thereof.

3. The election of members of the Board where necessary, the appointment of the auditors and the determination of their fees.

4. The Board’s proposals with respect to the distribution of profits.

5. The Board’s proposals concerning the remuneration of the Board membersand to determine such remuneration.

6. Discharging the members of the Board and the auditors from liability or resolving to dismiss them or initiate legal proceedings against them, as the case may be, in accordance with applicable laws and regulations in this regard.

Article (37)

Each shareholder shall have the right to attend the General Meeting, and shall be provided with full and accurate information in relation to any resolution proposed to be voted on at the aforementioned meeting. Furthermore, each shareholder shall have a number of votes equal to the number of his shares.

A shareholder may authorise another person (who is not a member of the Board) to attend the General Meeting on his behalf by a special written authorization duly authenticated or by means of written delegation on a form of proxy approved by the Board for this purpose.

The proxy shall:

1. not be a member of the Board;

2. have full legal capacity; and

3. not represent, as a proxy, more than 5% of the Bank’s issued share capital.

Article (38)

Shareholders who do not have legal capacity shall be represented by their legal representatives.

Article (39)

The chairman or vice chairman shall chair the General Meeting and, if those persons are not present at the meeting, the General Meeting shall appoint from among the shareholders a chairman for that meeting. The General Meeting shall also appoint two or more persons to check and regulate the voting process at the meeting.

If the General Meeting is to discuss a matter relating to the chairman, the General Meeting shall elect one of the shareholders to chair the meeting.

Article (40)

The provisions of the Law shall apply to the quorum required to be present to make the General Meetings of various forms valid and to the required majority to pass the resolutions.

Article (41)

Shareholders shall enter their names in an electronic register made available for that purpose at the place specified by the notice convening the General Meeting. The register shall close (15) fifteen minutes before the specified time of the General Meeting. The register shall contain the names of shareholders, the numbers of shares held or represented by them and, in the case of representatives, the names of their holders must be stated together with whether the representatives are authorised by means of a special written authorization duly authenticated or by means of written delegation on a form of proxy approved by the Board for this purpose. The shareholder or the proxy shall be given a card to attend the meeting, which shall state the number of votes held or represented by him/her.

Article (42)

Every shareholder shall have the right to discuss the issues included in the agenda of the General Meeting and to address questions to the members of the Board and to the auditors, who shall be obliged to answer the questions so long as this is not detrimental to the Bank’s interests. Any provison to the contrary shall be repealed.

Furthermore, a shareholder may appeal to the General Meeting if he considers that the reply to his question is insufficient, and the General Meeting’s decision shall be implemented.

Article (43)

Voting on resolutions of a General Meeting shall be made by show of hands or ballot or, if permitted by the Law at any time, electronically, but, if it relates to the election, dismissal or impeachment of the members of the Board, shall be by means of secret Cumulative Voting.

Article (44)

Members of the Board must not vote on resolutions of the General Meeting relating to the release of their liabilities of management or other matters or on resolutions relating to their private interests or a Conflict of Interest or to disputes arising between them and the Bank, and in the event that the Board member is nominated by a legal entity, the shares of such legal entity shall be excluded.

Article (45)

Minutes shall be prepared for the General Meeting which shall include the names of the shareholders present or represented, the number of shares which they hold in their own right or by proxy, the number of votes they hold in their own right or by proxy, the passed resolutions, the number of votes for and against and an adequate summary of the discussions which took place in the course of the meeting.

Article (46)

Minutes of the General Meeting shall be recorded regularly following each meeting in a special register, which shall be maintained in accordance with the terms set out by the SCA in this respect. All recorded minutes in the register shall be signed by the chairman of the General Meeting, the secretary of the meeting, the teller and the auditor.

The signatories to the minutes of meetings shall be responsible for the accuracy of the information stated in the minutes.

The chairman, Board members, the chief executive officer, the managing director, the general manager, the Board Secretary, or the Bank’s general counsel are each authorised by the Bank individually to provide certified copies of extracts taken from the minutes of General Meetings, by signing such extracts, identifying that it is a certified true copy of the original and including the date that the certification is provided. Any party dealing with the Bank may rely absolutely on such certified copy as being a true and accurate copy of the original document.

Article (47)

Resolutions of a General Meeting adopted in accordance with the provisions of the Law and these Articles shall be binding on all the shareholders whether they were present or absent, and whether they voted in favour or against such resolutions.

The chairman shall be obliged to implement resolutions of a General Meeting and shall submit a copy thereof to the relevant authorities and the stock exchange where the Bank’s shares are listed.

Article (48)

The General Meeting may, through a Special Resolution, decide the following actions:

1. Increase the share capital or reduce the share capital.

2. Dissolution of the Bank or its merger with another company.

3. Sale or otherwise disposing of any business of the Bank.

4. Extension of the term of the Bank.

5. Issue Sukuk or Bonds by the Bank.

6. Give voluntary contributions not exceeding 2% of the average net profits of the Bank during two fiscal years preceding the year of contribution in accordance with Article (242) of the Law.

7. Amendment to the Bank’s Memorandum of Association or these Articles, subject to the following restrictions:

the amendment should not increase the shareholders’ obligations unless unanimously approved; and

the amendment should not cause the transfer of the head office out of the State.

CHAPTER SEVEN

AUDITORS

Article (49)

The Bank shall have one or more auditors who shall be appointed by the Annual General Meeting for a renewable period of (1) one year provided that such term does not exceed (3) three successive years. The Annual General Meeting shall determine the auditors’ fees. Such auditor should be registered with the SCA and be licensed to practice and be approved by the Central Bank.

Article (50)

The auditors shall be responsible to the Bank for the audit and for the accuracy of information contained in their report and be liable to compensate the Bank for damage it incurs resulting from the auditor’s actions in the course of discharging their duties.

Article (51)

The auditors shall audit the Bank’s accounts and examine the balance sheet and profit and loss account, and ensure compliance with the application of Law and the provisions of the Articles. The auditors shall prepare a report on the balance sheet and profit and loss account which shall state whether balance sheet and profit and loss account are true and fair. Further, the auditors shall present the report on their examination to the Annual General Meeting and send a copy thereof to the Relevant Competent Authorities.

Article (52)

The auditors shall have the right at all times to examine all books, records, ledgers and papers and any other documentation of the Bank. The auditors may request any clarifications that they consider necessary in order to discharge their functions, and may also verify the assets and liabilities of the Bank, and the chairman must facilitate this for them.

If the auditors are not given all of the information and explanations required to perform their duties they must state this fact in their written report to be submitted to the Board. If the Board does not enable the auditors to carry out their functions, the auditors must send a copy of the report to the SCA, and must present the report to the General Meeting.

Article (53)

If the Board fails to send a notice convening an Annual General Meeting in cases where the Law requires a meeting to be held the auditors shall send such notice and may also do so whenever the need is urgent, and in such cases, the auditors shall prepare and publish the agenda.

Article (54)

The auditors must attend the Annual General Meeting and shall give their opinion in the meeting on all the aspects of their work, and particularly on the Bank’s balance sheet and shall read out their report to the General Meeting, which should include the information outlined in Articles (245), (246) and (250) of the Law.

If the Bank has more than one auditor, they shall share the duties between them, and each of them shall submit an independent report on the assignment entrusted to him, and the auditors collectively shall submit a report for which they shall be jointly liable.

The auditor’s report shall be read out at the Annual General Meeting, and each shareholder shall have the right to discuss the same and to request clarification of the matters contained therein.

CHAPTER EIGHT

THE BANK’S FINANCES

Article (55)

The financial year of the Bank shall commence on the 1st January and end on the 31st of December in each year. The Board must, at least one month before the Annual General Meeting prepare, in respect of each financial year, the balance sheet of the Bank and the profit and loss accounts. The Board must also prepare a report concerning the activities of the Bank during the financial year, its financial standing as at the end of that year and the manner in which it proposes that the net profits shall be distributed.

A copy of the balance sheet, profit and loss account, the report of the auditor and report of the ‎Board of Directors shall be sent to the SCA within (7) seven days from the date of convening the ‎Annual General Meeting. The annual balance sheet and the profit and loss account shall be ‎published in two daily local newspapers, one of which is issued in Arabic, within (15) fifteen days ‎from the date of approval thereof by the Annual General Meeting. A copy of the balance sheet ‎and the profit and loss account shall be provided to the SCA and the other Relevant Competent Authorities.

Article (56)

A percentage of the gross annual profits at the rate determined by the Board may, subject Article (57), be deducted for the depreciation of the Bank’s assets or as a compensation for the depreciation in their value. Such funds shall be utilized as determined by the Board and shall not be distributed to the shareholders.

Article (57)

The net annual profits of the Bank shall, after the deductions of all general expenses and other costs, be distributed as follows:

1. (10%) ten percent shall be deducted from the profits and allocated to the statutory reserve account. The General Meeting may cease the deductions when the total reserve reaches an amount equivalent to at least (50%) fifty percent of the paid up capital of the Bank. If there are any shortfalls in the reserve, the deductions must resume.

2. Another (10%) ten percent of net profit shall be transferred to the voluntary reserve account. Such deduction may be suspended by a Special Resolution on the strength of a proposal put forward by the Board of Directors.

3. The General Meeting shall determine the percentage to be distributed to the shareholders after deduction of the statutory reserve. However, if the net profits in a certain year do not allow the distribution of said amount, then it shall not be claimed from the profits of the following years.

4. A maximum of (10%) ten percent of net profit shall be deducted and allocated as remuneration for the members of the Board, after obtaining the approval of the General Meeting.

5. The remaining amounts of the net profits are distributed among the shareholders or shall be moved to the subsequent year, pursuant to a recommendation made by the Board, or it shall be allocated to form a voluntary reserve dedicated to special purposes. Such reserve may not be used for any other purpose unless otherwise resolved by the General Assembly.

Article (58)

The reserve shall be utilized as may be resolved by the Board having regard to the Bank’s interests, save that it shall not be permissible to distribute the statutory reserve among the shareholders and it shall not be permissible to use the reserves for purposes other than those for which they were established without resolution of a General Meeting.

CHAPTER NINE

NOTICES

Article (59)

1. All notices sent by or to any person shall, except for the notices to attend the General Meeting set forth in Article (34), be in writing and within the limits permitted by the Law.

2. Without prejudice to Article (34) hereof, the Bank may send any notice or other documentation under these Articles to any shareholder or Board member by any of the following means of communication as the same may be determined by the Bank in its sole discretion and as such may be permitted by the relevant authorities from time to time:

a) By registered mail to the Board member’s or shareholder’s registered address;

b) By hand delivery to the Board member’s or shareholder’s registered address; or

c) By electronic mail to the Board member’s or shareholders’ email address.

3. All shareholders present personally or by proxy at any General Meeting of the Bank shall be deemed to have received notice of attendance thereat and at any adjourned meeting thereof and of the business of that General Meeting.

CHAPTER TEN

DISSOLUTION

Article (60)

The Bank may be dissolved for any of the following reasons:

1. The expiration of its duration or the completion of the objectives for which it was established.

2. The passing of a resolution to this effect by a Special Resolution of the General Meeting on the termination of the duration of the Bank.

3. The loss of all or most of the Bank’s assets such as to preclude the profitable investment of the remainder.

4. In the event of sustaining a loss exceeding half of its capital unless otherwise resolved by a Special Resolution of the General Meeting.

5. The amalgamation of the Bank with another bank or company.

6. The issuance of a court order dissolving the Bank.

Article (61)

In case of the Bank’s dissolution, the General Meeting shall, upon the request of the Board, determine the manner of liquidation, and shall appoint one or more liquidators and determine their powers. The authority of the Board shall end upon the appointment of the liquidators. However, the authority of the Board shall remain effective throughout the liquidation period, until the liquidators are released of their responsibility.

CHAPTER ELEVEN

MISCELLANEOUS

Article (62)

The provisions of the Law, the provisions of the Central Bank Law and any other applicable laws and regulations shall apply to any matter for which no specific provision is contained in these Articles of Association.

References in these Articles to any law, regulation or rule shall be deemed to be to such law, regulation or rule as amended, supplemented or replaced from time to time.

Article (63)

 

In the event of discrepancy between the Arabic and English texts of these Articles, the Arabic text shall prevail.

These Articles shall be lodged and published in accordance with the Law.

These amended Articles shall revoke and substitute all the previous articles of the Bank and shall prevail over the content of the Memorandum of Association.

The Board of Directors of the National Bank of Ras Al Khaimah ( PSC) is pleased to invite shareholders to attend the Annual Ordinary General Assembly Meeting scheduled on Sunday, 17th April, 2016 at 10:00 AM, RAKBANK Head Office, 9th floor, Sh. Mohd Bin Zayed Road, Exit 129, Ras Al Khaimah to consider the following agenda:

  1. To consider and approve the Board of Directors’ Report on the company’s activities of the Bank and financial position for the financial year ended 31 December 2015.
  2. To consider and approve the External Auditors’ Report on the financial position of the company for the financial year ended 31 December 2015.
  3. To discuss and approve the balance Sheet and profit and loss statements for the financial year ended 31 December 2015.
  4. To discuss and approve the Board of Directors proposal regarding the distribution of a 50% cash dividend for year ended 31 December 2015.
  5. Absolve the members of the Board of Directors from any liability for year ended 31 December 2015 or to dismiss the Directors and to file the liability claim against them, as the case may be.
  6. Absolve the External Auditors from any liability for year ended 31 December 2015 or to dismiss the Auditors and to file the liability claim against them, as the case may be.
  7. Appoint Auditors for 2016 and fix their remuneration.
  8. Fix remuneration of the Board of Directors.

    Special Resolution:

  9. Approve to increase the amount of the Medium term notes that the Bank can issue from the current approved limit of USD 1 billion to USD 1.5 billion
  10. To consider and approve amended Articles of Association pursuant to the provisions of Law No. 2 of 2015 subject to competent authorities and approving in advance any subsequent amendment required by the Economic Department, Ras Al Khaimah, Central Bank of the UAE and/or Securities and Commodities Authority

    Notes:

  1. Any shareholder that has the right to attend the General Assembly may delegate any person elected by such shareholder, other than a Director, under a special written proxy. A proxy shall not hold in this capacity over 5% of the share capital of the company. Shareholders who are minors or incompetent shall be represented by their legal representatives.
  2. A corporate person may delegate one of its representatives or those in charge of its management under a resolution passed by its Board of Directors or any similar entity to represent such corporate person in any General Assembly of the company. The delegated person shall have the powers as determined under the delegation resolution.
  3. Each shareholder registered in the share register on Thursday, 14th April 2016 shall be entitled to vote in the General Assembly Meeting.
  4. Shareholders entitled for cash dividend are those recorded in the share register on Wednesday 27th April 2016.
  5. The company’s audited Financial Statements, Directors’ Report and proposed amendments in the Articles of Association will be available at the bank’s website: www.rakbank.ae and www.adx.ae .
  6. Quorum at General Assembly shall be present if shareholders holding or representing by proxy at least 50% of the share capital of the company are present at the meeting. If quorum is not present at the first meeting, the General Assembly shall be adjourned to another meeting to be held on Sunday, 24th April 2016 at the same venue and time. Quorum at the adjourned meeting shall be present irrespective of the number of the present shareholders.
  7. Investors have to update their contact details and addresses in ADX records to ensure receiving their dividend appropriately. If approved, dividends shall be distributed through ADX.
  8. Special Resolution: such resolution issued by the majority votes of shareholders holding at least 75% of the shares represented at the General Assembly Meeting of the Company.
  9. A written proxy form should be lodged with the Bank’s Head Office, Sh. Mohamed Bin Zayed Road, Exit No. 129, Tel 072061416, Ras Al Khaimah before close of business day on 12th April 2016.

Board of Directors

United Arab Emirates, 03 February 2016: RAKBANK Group today announced AED 1,405.3 million in Net Profit for the year ended 31 December 2015, a marginal decrease of AED 49.3 million over the previous year. Operating income grew by 10.8% year-on-year to AED 3,939.2 million as Net Interest Income and Income from Islamic products net of distribution to depositors were up by 10.6% to AED 3,048.3 million. Non-Interest income grew by 11.7% to AED 890.9 million.

With a 1.8% reduction in Operating Expenses in 2015, the Group improved its Cost-to-Income ratio to 37.5% compared to 42.3% in 2014 as it maintained its focus on cost optimization, which saw the Group consolidate some business lines in an effort to enhance synergy and improve efficiency across its operations. As a result, the Operating Profit of the Group before provisions increased by 20.0% to AED 2,460.7 million.

However, provisions for Loan Impairments increased by AED 460.1 million over last year due to higher loan provisioning mainly in the unsecured lending portfolios. Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 3.2% compared to 2.4% at the end of the previous year. The Bank is well provisioned against loan losses with a conservative Loan Loss Coverage ratio of 81.4% compared to 87.1% at the end of 2014, which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans.

During the year, the Group continued to generate solid and sustainable growth. Year-on-year total Retail Banking loans grew by AED 1,327.8 million, up by 5.4% over the previous year. The major successes of the Retail Banking segment this year were the launch of a new premium banking service (RAKelite), three new MasterCard Credit Cards, and a new retail remittance offering branded RAKMoneyTransfer.

In the fourth quarter of 2015, RAKBANK moved its SME business to the Retail segment and renamed its Business Banking segment to Wholesale Banking in line with the Bank’s strategy to increase penetration into larger businesses and to focus on growing its Commercial and Corporate Banking portfolio, Trade Sales, Financial Institutions Lending, and Asset Based Financing. Year-on-year total Wholesale Banking loans grew by 138.1% to AED 2,429.4 million.

Balance Sheet highlights included a 10.6% increase in Gross Loans and Advances to AED 28,542.7 million across the Bank’s Retail and Wholesale portfolios. The Group’s Total Assets grew by 16.4% to AED 40,553.1 million. Customer Deposits were up by 12.9% to AED 27,820 million mainly from an increase of AED 2.5 billion in Demand Deposits and AED 653.2 million in Time Deposits. Within that, Islamic customer deposits grew by AED 899.2 million to AED 3.5 billion compared to the previous year. During the first half of 2015, the Group successfully issued the second tranche of USD 300 million notes under its USD 1 billion medium term note program.

H.E. Mohamed Omran Alshamsi, RAKBANK Chairman, said: “We remain committed to generating solid and sustainable growth across our Retail, Wholesale, Treasury and Insurance segments. We are placing greater emphasis on optimizing synergies within the Group to increase efficiency while supporting the diversification of our revenue streams. By doing so, we aim to better serve our customers by offering them a seamless experience across the Bank’s diverse products and services through industry-leading customer service, innovation, and simplicity. We will also continue to strengthen our capacity to meet any future challenges.”

Commenting on the Group’s performance, RAKBANK Chief Executive Officer, Peter England, said: “The Bank has faced stronger than expected headwinds in our Retail and Small Business Finance portfolios due to the challenging global and regional environment which is beginning to have an effect on some segments in the UAE. Despite market challenges, Operating Profit before Provisions increased by 20.0% over the previous year, reflecting healthy and sustainable growth in our key business segments. In late 2014, we commenced a concerted effort to diversify the income base and improve the risk profile of the Group by moving into new business lines such as Wholesale Banking, Insurance, and Remittance and we are making considerable progress in these areas. We also took the opportunity in 2015 to remove duplication and inefficiency in our organization structure, which had been built up over many years of very strong growth, and this is reflected in our lower cost base in 2015. With a strong commitment to customer centricity, the Bank remains focused on innovation to better serve customers. In addition to winning several awards for our digital solutions in 2015, RAKBANK became the first bank in the UAE to achieve the ISO 9001:2015 version certificate for its Branches and Inbound Contact Centre.”

The Bank’s Tier 1 ratio as per Basel II, after taking into consideration the profit for 2015 and the proposed dividend, was 24.4% at yearend (subject to shareholders and final UAE Central Bank approval), compared to 26.5% at the end of 2014, against a requirement of 12% set by the UAE Central Bank. The regulatory eligible liquid asset ratio at the end of the year was 19.1%, compared to 20.0% at the end of 2014, and advances to stable resources ratio stood comfortably at 83.3% compared to 87.9% at the end of 2014.

At the board meeting held on 02 February 2016, the Directors recommended a cash dividend of 50% subject to shareholders’ and final UAE Central Bank approval. The Directors consider that the Bank is well placed to meet any challenges faced in 2016. The dividend recommendations will result in 40% of net profit being retained within the Bank’s shareholders equity thereby increasing capital and reserves to strengthen the Bank’s overall position and provide support for future growth.

 

About RAKBANK
RAKBANK, also known as the National Bank of Ras Al Khaimah, is one of the UAE’s oldest and most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of retail banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKBANK AMAL, throughout its 35 branches and its Telephone, Online, and Mobile Banking channels.

RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). According to The Banker's Top 1000 World Banks 2015, RAKBANK is the 1st by Return on Assets in the UAE and the Arab World.

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

RAKBANK Contact:
Lamis Daoud
[email protected]

United Arab Emirates – 26 October 2015: The National Bank of Ras al Khaimah (RAKBANK) today announced a consolidated net profit of AED 1,089.4 million for the first nine months of 2015, a modest increase of 1.5% over the corresponding period in 2014. The Group’s total income grew by 12.0% to AED 2,940.8 million during the nine months compared to the same period last year. This was a result of a year-on-year increase in net interest income and income from Islamic products net of distribution to depositors by 12.4% and non-interest income by 10.7%.

Operating expenses were up by 1.9% during the nine months compared to the previous year. As the Bank continues to grow its income base and focus on cost optimisation, the cost-to-income ratio dropped to 39.1% from 42.9% during the nine-month period last year. Consolidated operating profit before provision for impairment grew by 19.5% year-on-year to AED 1,791.3 million by 30 September 2015.

“The Bank continues to see growth momentum in business each quarter despite testing global and regional economic conditions,” commented Peter England, RAKBANK Chief Executive Officer. Net profit was up by AED 15.9 million compared to the corresponding period last year as total impairment charge for the first nine months of 2015 grew to AED 701.9 million.

“In addition to the more normalised levels of provisioning we have seen in the last 18 months, we have seen stress in some segments of our SME and Commercial lending activities which has pushed our provisioning higher. However the Bank’s focus on growing revenue, maintaining industry-leading net interest margins, and containing cost have allowed us to improve our net profit,” explained England.

Gross loans and advances increased by 15.5% year-on-year to AED 28.8 billion by the end of the first nine months of the year. Trade Finance volumes grew by 23.2% year-on-year and the Bank began its re-entry into the mid-corporate banking sector. Meanwhile, customer deposits were up by AED 2.1 billion to AED 26.7 billion during the first nine months of 2015 compared to 31 December 2014, of which Islamic deposits increased by AED 489.4 million.

“The Bank will continue to take advantage of market opportunities as we begin to enter into the second year of the Bank’s three-year strategic plan. We launched our second new credit card offering this year, the RAKBANK World MasterCard, in line with our commitment to offering convenient and rewarding banking solutions. Our focus remains on enhancing innovation in our existing businesses to deliver superior service and competitive financial products to customers, while maximizing value to shareholders,” said England.

“In the fourth quarter of this year, the Bank will unveil an improved premium offering under the RAKelite brand, a new market-leading Retail remittance offering, and various insurance products developed by the Bank’s latest subsidiary – RAK Insurance. In addition, the Bank will continue to invest in a growing its branch network alongside simple and convenient digital solutions,” continued England.

During 2015, total assets have grown by AED 4.1 billion to AED 39.0 billion as at 30 September 2015, mainly as a result of strong growth in Gross Loans and Advances.

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 23.15%, comprising entirely of Tier 1 capital. This is against a current minimum total capital ratio of 12.0% prescribed by the Central Bank in the UAE. At the end of the quarter, the regulatory Eligible Liquid Assets Ratio stood at a healthy rate of 18.5% and Lending to Stable Resources Ratio was 87.3%.Total equity attributable to shareholders totalled AED 7.4 billion including the nine months’ profit.

 

About RAKBANK
RAKBANK, also known as the National Bank of Ras Al Khaimah, is one of the UAE’s oldest and most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking.

In addition to offering a wide range of retail banking services, it increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKBANK AMAL, throughout its 35 branches and its Telephone, Online, and Mobile Banking channels.

RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Exchange (ADX). According to The Banker's Top 1000 Bank Rankings 2015, RAKBANK is the 1st by Return on Assets in the UAE and the Arab World.

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

 

RAKBANK PR Contact:
Lamis Daoud
042915064
[email protected]

The National Bank of Ras al Khaimah (RAKBANK) today announced a consolidated net profit of AED 716.2 million for the half-year ended 30 June 2015. The Group’s total income grew by 12.2% to AED 1.9 billion during the half-year compared to the same period last year as a result of an increase of 12.9% in net interest income and 9.8% in non-interest income.

 

Operating expenses inched up by 3.0% during the first six months of the year compared to the previous year. However cost-to-income ratio dropped to 40.0% from 43.6% as the Bank continues to grow its income base and focus on cost optimisation. The consolidated operating profit before provision for impairment jumped by 19.2% to AED 1.1 billion while the total impairment charge for the half year stood at AED 426.9 million compared to AED 258.4 million in the first half of 2014.

 

“Despite rising competition in the UAE banking market, the Group continues to record further improvement in year-on-year operating income and expense ratios,” said Peter England, RAKBANK Chief Executive Officer. “Gross loans and advances increased by 16.0% year-on-year to AED 27.7 billion by the end of the first half of 2015 across most of the Bank’s Retail and Business Banking portfolios. SME and Commercial lending under our Business Banking segment, which has been a focus for the Bank since early 2014, recorded a jump of 115.0% in gross loans and advances year-on-year. As a result of this growth in overall lending volumes, our impairment charge was higher than what we saw in the previous year however our non-performing loans remained steady at 2.7%,” explained England.

 

Towards the end of May 2015, RAKBANK acquired 79.23% of Ras Al Khaimah National Insurance Company P.S.C. (RAK Insurance) to become the largest shareholder in the insurance provider. “With a controlling stake in RAK Insurance, we look forward to collaborate on developing and providing insurance products to enhance revenue and market share and ensure that customers enjoy a more wholesome experience,” said England.

 

Total assets grew by AED 3.2 billion compared to 31 December 2014 mainly as a result of strong growth in gross loans and advances which were up by AED 1.9 billion to AED 27.7 billion and the consolidation of RAK Insurance amounting to AED 615.8 million. Total assets stood at AED 38.1 billion on 30 June 2015. Customer deposits grew by AED 1.4 billion to AED 26.1 billion during the first half of 2015 compared to 31 December 2014.

 

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 23.7%, comprising entirely of Tier 1 capital. This is against a current minimum total capital ratio of 12.0% prescribed by the Central Bank in the UAE. At the end of the quarter, the regulatory liquid assets ratio was 18.6% and advances to stable resources ratio was 87.7%. Total shareholder’s equity totalled AED 7 billion including six months’ profit.

 

“Looking ahead, we will continue to aggressively grow the bank’s top line in the second half of the year while strengthening our branch and ATM network across the country and launching additional digital banking solutions,” added England. The Bank is constantly working to find new ways to improve the customer experience through innovation, service excellence, and customer convenience. During the quarter, RAKBANK was recognized by The Asian Banker as Best Mobile Banking Initiative in the Middle East for 2014 for MobileCash card-less cash withdrawal solution and Best SME Bank in the Middle East.

United Arab Emirates, 28 May 2015: RAKBANK today announced the acquisition of 79.23% stake Ras Al Khaimah National Insurance Company P.S.C. (RAK Insurance) following the purchase of a total of 87,154,981 shares at AED 3.64 per share through a tender offer. The acquisition enables RAKBANK to become the largest shareholder in the insurance provider and is in line with the Bank’s strategy to become a broad-based financial services company.

H.E. Mohammad Omran Alshamsi, RAKBANK Chairman, commented: “The acquisition is consistent with the Bank’s key strategic objective of strengthening market share and I am confident that this acquisition will deliver long-term value to all stakeholders.”

Peter England, RAKBANK CEO, said: “RAK Insurance is a successful and well reputed insurance provider and we look forward to growing our collective businesses in a very close partnership and to jointly develop a range of insurance products over time. We see a tremendous opportunity for growth in the Bank’s business by diversifying into complementary industries such as insurance that enhance revenue and market share and ensure that customers enjoy a more wholesome experience.”

Founded in 1974, RAK Insurance is a successful insurance provider listed on the Abu Dhabi Securities Exchange (ADX) and has a full license to issue conventional general and life policies.

Andrew Smith, RAK Insurance CEO, said: “I am delighted that we have been able to partner with RAKBANK through a share acquisition. Developing the bancassurance channel, RAK Insurance will be able to further strengthen its client’s relations and help provide the bank with unique and innovative products and services. This is an exciting opportunity for both parties and I look forward to continued success.”

With a total capital ratio of 24.2% by end of 31 March 2015, RAKBANK funded the entire acquisition through existing resources. Whilst RAK Insurance will become the Bank’s preferred insurance partner, RAKBANK will continue to bring to its customers a range of insurance products from other providers as per its current arrangements to ensure that customers have choice from a wide range of products to suit their needs. The Bank has 35 branches and over 200 ATMs throughout the UAE, as well as Telephone, Online, and Mobile banking solutions.

 

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. Founded in 1976, RAKBANK successfully underwent a major transformation in 2001, shifting its focus from purely corporate banking to include Retail and Business banking.

RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 35 branches and its Telephone, Online, and Mobile banking channels. According to The Banker's 2014 Top 1000 Bank Rankings, RAKBANK is the 1st in the UAE by Return on Assets and the 17th in the world.

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

For media queries, kindly contact Lamis Daoud on +97142915064 or via [email protected].

Shareholders elect board members and approve 50 fils cash dividend for 2014

Ras Al Khaimah, UAE – 9 April 2015: RAKBANK successfully concluded its Annual General Meeting today at its headquarters in Ras Al Khaimah. During the AGM, shareholders approved the distribution of a cash dividend of 50 percent (50 fils per share) for the financial year ending 31 December 2014.

RAKBANK’s ordinary annual general meeting proceeded to elect the Board of Directors, which welcomed three new members this year. For the financial years 2015-2017, RAKBANK’s Board of Directors consists of:

  • H.E. Mohammad Omran Alshamsi
  • H.E. Engr. Sheikh Salem Bin Sultan Al Qasimi
  • Mr. Ahmed Essa Al Naeem
  • Mr. Hamad Abdulaziz Al Sagar
  • Mr. Salem Ali Al Sharhan
  • Mr. Yousuf Obaid Al Nuaimi
  • Mr. Rajan Khetarpal
  • Mr. Allan Griffiths

Following the election, the directors met and unanimously elected H.E. Mohammad Omran Alshamsi as the new RAKBANK Chairman. Commenting on his appointment, H.E. Mohammad Omran Alshamsi, former CEO and Chairman of Etisalat, said: “I am pleased to be named Chairman of one of the most dynamic UAE banks. I appreciate the trust and confidence placed in me by the shareholders and my fellow board members.”

From his side, RAKBANK’s CEO, Peter England, said: “I would like to take this opportunity to welcome H.E. Mohammad Omran Alshamsi as the new Chairman and my team and I look forward to his guidance and counsel as we embark on the next phase of the bank’s transformation and growth.

I would also to thank H.E. Sheikh Omar Bin Saqr Al Qasimi for his contribution to the Bank. H.E. Sheikh Omar Bin Saqr Al Qasimi was elected as the Bank’s Chairman in 2006 and has served in this role until today. Under his supervision, the Bank saw its net profit rise from AED 258.8 million in 2006 to AED 1,454.6 million by end of 2014, while assets quadrupled from AED 8.8 billion in 2006 to AED 34.8 billion at the end of last year.”

“In 2014, RAKBANK once again recorded solid top line performance as a result of growth in just about all of our key business lines,” added England. “I look forward to working with our new Board as the Bank continues to explore new opportunities for revenue growth across Retail and Business Banking, while taking advantage of new opportunities that aim to grow our presence in the UAE and increase market share.”

The AGM also approved the financial statements for the year ending December 31, 2014 and the appointment of PricewaterhouseCoopers as the Bank’s external auditors for the financial year of 2015.

RAKBANK today announced a net profit of AED 362.2 million for the three months ended 31 March 2015. Gross loans and advances grew by 15.8% year-on-year and stood at AED 26.7 billion by the end of the quarter.

 

The 8.3% increase in profit over same period last year reflects a year-on-year improvement in operating income and improved expense ratios. Total Operating Income for the three months ended March 2015 increased by 13.1% year-on-year to AED 932.3 million due to a rise in net interest income. Non-interest income was up by 7.2% to AED 198.8 million compared to the same period last year mainly due to an increase of 11.4% in fees and commission income.

 

During the first quarter the Bank continued to invest in its distribution network, product development, and electronic solutions. In addition to opening a new branch in Al Ras area and launching the KALYAN JEWELLERS co-branded MasterCard credit card, RAKBANK was recently recognized during the G-Summit 2015 as one of the very few banks in the world to provide authenticated web chat service to customers on its corporate website and its Online Banking platform. As a result of these investments and a rise in employment costs to support business growth, operating expenses increased by 4.8% year-on-year to AED 377.0 million by the end of the first three months of 2015. Nevertheless, Cost-to-Income ratio dropped to 40.4% as at 31 March 2015 from 43.6% as at 31 March 2014.

 

“Our first quarter financial results reflect stable earnings, healthy liquidity, and a strong capital base,” said Peter England, RAKBANK CEO. “The key contributing factor is growth in gross loans and advances, which were up by AED 863.9 million year-to-date as a result of strong signs of growth during the quarter across most business units especially RAKFinance, Auto Loans, and Business Banking. Traditional working capital and trade loans to the SME and Commercial Banking segment grew by around 130% year-on-year and our Trade Finance portfolio surpassed AED 2 billion.”

 

The total impairment charge for the three months increased by AED 62.7 million year-on-year to AED 193.1 million as the provision coverage ratio closed at 84.6%. “This rise is largely due to an increase in provisions in Personal and RAKFinance loans, the overall growth in our loan book, and the Bank’s commitment to a long-term sustainable performance as we continue to take further precautionary provisions on our restructured book. That being said, non-performing loans (NPL) and net credit loss (NCL) remain very reasonable given the fact that we are largely an unsecured lender,” explained England. As of 31 March 2015, NPL stood at 2.7% of the gross loan portfolio and the annualized NCL to average loans and advances closed at 2.98%.

 

Total assets grew by 2.5 billion year to date as a result of loans and advances and deposits with other banks. This includes the un-deployed funds from the Bank’s own Euro Medium Term Note (EMTN) which raised a further USD 300 million in February 2015 by re-opening the June 2019 bond under the Bank’s USD 1 billion EMTN programme. In addition to the ordinary growth in assets, the Bank received AED 3.7 billion in funds from a Business Banking customer on 31 March 2015, which was parked with other banks on an overnight basis. As a result, total assets stood at AED 41.0 billion by the end of the quarter.

 

Customer deposits were up by AED 1.5 billion year to date on the back of an increase in current and saving accounts as well as Islamic banking deposits, which grew by 11.5% to AED 2.9 billion. Taking into account the AED 3.7 billion funds received from a Business Banking customer on 31 March 2015, total deposits stood at AED 29.9 billion by the end of the quarter.

 

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 24.2% against a current minimum total capital ratio of 12% prescribed by the UAE Central Bank. At the end of the quarter, the regulatory liquid assets ratio (LAR) was 16.6% AED and lending to stable resources ratio (LSRR) was 75.1%. Total shareholder’s equity totaled AED 7.5 billion and includes three months profit for the year 2015 and undistributed dividend of AED 838.1 million for the year 2014.

United Arab Emirates, 23 February 2015: The National Bank of Ras Al-Khaimah P.S.C. (“RAKBANK”) today successfully raised an additional USD 300 million funding as an add-on to its existing USD 500 million 3.250% bond due 24-June-2019. The additional funding was issued at a cash price of 100.875. The funding falls under RAKBANK’s USD 1 billion EMTN programme, which was set-up in June 2014.

 

RAKBANK Chief Executive Officer, Peter England, said: “We are pleased with the success of the upsize, which continues to highlight the confidence placed by investors in our Bank. In addition to taking advantage of the low-cost financing opportunities that prevail in the bond market, the increase also boosts the Bank’s ability to fund growth plans in 2015. The issuance allows us to further diversify the Bank’s sources of funding and to access a wider base of investors.”

 

Standard Chartered Bank and NBAD acted as Joint Arrangers and Joint Lead Managers, on this transaction.

Ras Al Khaimah, 26 January 2015: RAKBANK today announced AED 1,454.6 million in net profit for the year 2014. Operating profit before provisions increased by 15.7% from the previous year with a strong growth in Total Loans and Advances. Total assets grew by 15.6% compared to the end of 2013 to AED 34.8 billion.

 

Total operating income went up by AED 404.8 million to AED 3.56 billion as net interest income and net income from Islamic financing grew by 11.8% to AED 2.76 billion. This was due to higher interest income from loans and investments as well as lower cost of deposits. Non-interest income was up by AED 113.1 million as net fees and commission income was bolstered by strong performances in the income streams of Credit Cards, RAKFinance (unsecured lending to small businesses), and Business Banking, in addition to Trade Finance solutions which grew by more than 200% after establishing trade service desks across the UAE.

 

On the other hand, provisions for loan impairments stood at AED 595.3 million, up by AED 254.7 million over last year due to higher loan provisioning throughout the year. Non-performing loans were steady at 2.4% and net credit losses to average loans and advances closed at 2.5%. The Bank continues to improve its loan loss cover with the loan loss coverage ratio improving to 87.2% compared to 73.3% at the end of 2013, which doesn’t take into consideration mortgaged properties and other realizable asset collateral available against the loans.

 

Commenting on the Bank’s performance, RAKBANK CEO, Peter England, said: “In 2014 the Bank’s top line performance has been very strong. Our overall income grew by AED 405 million to AED 3.6 billion and our operating profit surpassed the AED 2 billion mark for the first time in the Bank’s history. Our net profit growth however was relatively muted as a result of a full year’s impact of increased provisions. Total loan growth for the year was at 15.4% which reflects well for 2015 as we see the full year impact of the loan growth flowing though into our income lines.”

 

“In addition to our robust Retail lending performance, our 2014 strategy saw a renewed focus on the SME and commercial banking segment, with the traditional Business Banking portfolio more than doubling from 2013 to reach AED 2.2 billion.” In mid-2014 we also launched Asset Based Finance to our business customers through which the Bank began funding commercial vehicles and equipment. It crossed AED 100 million within six months of its launch. “These initiatives along with exceptional growth in RAKFinance, means our total business loans are now just under AED 8 billion which would make us one of the largest lenders to SMEs in the UAE,” added England.

 

Also during 2014, the Islamic banking unit - ‘Amal’ - launched Home Finance under the concept of Ijarah, Instant Finance, as well as Rent and Education Finance. By the end of the year, it achieved a solid growth of AED 2.2 billion in its financing portfolio, an increase of close to 200% over the year before.

 

Operating costs were up by 9.2% over 2013 due to an increase in employment costs in support of business growth as well as an increase in technology investments to enhance customer service. The rise in operating costs remained below the total operating income growth of 12.9% indicating healthy profitability levels with the Bank’s cost to revenue ratio dropping to 42.3% compared to 43.8% in 2013.

 

Customer deposits grew by AED 6.9% compared to the previous year to AED 24.7 billion and Islamic customer deposits reached AED 2.6 billion by yearend.

 

The Bank’s Tier 1 ratio as per Basel II after taking into consideration the profit for 2014 and the proposed dividend was 26.5% at yearend compared to 29% at the end of 2013 (against a requirement of 12% set by the UAE Central Bank). The regulatory liquid asset ratio at the end of the year was 20%, compared to 19.8% at the end of 2013, and advances to stable resources ratio stood comfortably at 88.2% compared to 88.1% at the end of 2013.

 

“While the weakening price of oil could potentially trigger a slowdown in economic growth going forward, as a largely Retail and SME lender we remain confident about our prospects for loan growth in 2015. With solid results for 2014, the Bank continues to be in a strong competitive position to increase activity and market share in the coming year. We plan to explore new opportunities for revenue growth across Retail, Business, and Islamic Banking while enhancing our Remittance services. We will also introduce innovative products and services, strengthen our branch and ATM network across the country, and launch additional digital banking solutions,” concluded England.

 

Dividend

 

At the board meeting held on 26 January 2015, the Directors recommended a cash dividend of 50% which will result in 42.4% of net profit being retained within the Bank’s shareholders equity thereby increasing capital and reserves to strengthen the Bank’s overall position and provide support for future growth.

Dubai, UAE, 23 October 2014: RAKBANK achieved a net profit of AED 1.1 billion for the nine months ended 30 September 2014. Total assets stood at AED 34.8 billion, growing 20.5% year-on-year and 15.5% on a year-to-date basis. Gross loans and advances stood at AED 24.9 billion, up 13.5% year-on-year and 11.5% on a year-to-date basis. Gross Islamic financing assets increased by AED 1.7 billion compared to 31 December 2013.

 

Total operating income for the nine months ended September 2014 was up by AED 291.5 million to AED 2.6 billion, an increase of 12.5% compared to the nine months ended 30 September 2013. This growth was mainly due to an increase of AED 198.9 million in net interest income and income from Islamic financing, and AED 92.6 million in non-interest income, which climbed by 18.3% over the same period last year.

 

Net interest income plus net profit from Islamic financing for the nine months ended 30 September 2014 grew by 10.9% compared to the nine months ended 30 September 2013 to AED 2.0 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 109.8 million in line with the growing Islamic finance portfolio launched in 2013.

 

The nine month profit dropped by AED 64 million over the same period last year due to more normal levels of provisions for bad debts which started from the last quarter in 2013. The total impairment charge for the nine months stood at AED 425.1 million compared to AED 183.1 million for the same period last year. Non-performing loans were steady at 2.3% of the loan portfolio and the annualized net credit losses to average loans and advances closed at 2.4%.

 

“Given our loan mix, we are now seeing more normal levels of bad debt after a period of abnormally low credit losses last year. However our underlying business is very robust as operating income continues to grow strongly quarter on quarter,” said Peter England, RAKBANK CEO. “In addition to our top line growth in our Personal Banking business, the Business Banking segment, which covers traditional SME and commercial lending, has become a major engine of growth for RAKBANK, with our loan book more than doubling over the previous year to a total of AED 1.8 billion”.

 

Net profit for the three months ended 30 September 2014 was up by AED 7.2 million over the quarter ended 30 June 2014 to AED 373.1 million which reflects strong earnings contributions from most of the Bank’s business units.

 

Customer deposits grew by AED 1.6 billion to AED 24.7 billion compared to 31 December 2013. The growth came mainly from a rise of AED 1.9 billion in conventional demand deposits and AED 344 million in savings deposits. Despite a decrease of AED 1.1 billion in conventional time deposits, there was a healthy growth in Islamic deposits of AED 456 million over the first nine months of 2014.

 

Operating costs increased by 11.2% to AED 1.1 billion compared to the same period last year mainly due to increases in employment costs to support business growth. However, the Bank’s cost-to-revenue ratio during the first nine months of the year inched down to 42.9% from 43.4% during the same period in 2013.

 

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 25.07% 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 21.7% and lending to stable resources ratio was 86.4%. Total shareholder’s equity totalled AED 6.8 billion including nine months profit.

 

“Looking ahead, we see more potential for growth by diversifying into fee-generating products and growing our commercial lending and treasury segments. We also see a tremendous opportunity for growth by expanding into complementary industries,” added England. In mid-August 2014, the Bank received approval from its shareholders to acquire a majority stake in Ras Al Khaimah National Insurance Company (RAKNIC) at Dh3.64 per share and is currently awaiting regulatory approvals to proceed with the transaction.

 

The Bank is currently rated by following leading rating agencies. The below ratings have remained unchanged during the current year.

 

Rating Agency Deposits Financial Strength Support
Moody’s Baa1 / P-2       D+ -
Fitch    BBB+ / F2 C 2
Capital Intelligence A-/ A2 BBB+ 2

 

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 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.

 

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

 

For media queries, kindly contact Lamis Daoud on +9714 291 5064 or via [email protected].

 

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.

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 550,000 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 1000 Bank Rankings in 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. For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

For media queries, kindly contact Lamis Daoud on +9714 291 5064 or via [email protected].

RAKBANK achieved a net profit of AED 334.6 million for the quarter ended 31st March 2014.

 

Total assets stood at AED 31.5 billion growing 11.3% year on year. Asset growth year to date has been 4.6% which is attributed to a rise in the investments portfolio of AED 862 million and gross loans and advances by AED 680 million.

 

Gross loans and advances stood at AED 23.0 billion, up 12.3% year on year. Gross Islamic financing assets increased by AED 465 million compared to 31 December 2013. Customer deposits grew by AED 447 million to AED 23.5 billion compared to 31 December 2013. The growth was mainly in Sharia compliant deposits which grew by AED 342 million.

 

At AED 334.6 million net profit dropped by AED 33 million over the same period last year, however improved by AED 41 million over the 2013 fourth quarter results, reflecting better operating income, lower impairment charges and lower cost over the last quarter of 2014.

 

Net interest income plus net profit from Islamic financing grew by 7.4% compared to 31st March 2013 to AED 639.2 million mainly due to a reduction in the cost of deposits as the Bank focused on accumulating low cost transaction accounts and Income from Islamic financing which increased by AED 22.2 million to AED 22.8 million in line with its growing Islamic finance portfolio that commenced operations in 2013.

 

Total operating income increased by AED 72.3 million to AED 824.7 million, an increase of 10% compared to 31st March 2013. This growth was mainly due to an increase of AED 44.3 million in net interest income and income from Islamic financing and AED 28.0 million in non-interest income, which went up by 17.8% from the same period last year.

 

Operating costs increased by 11% to AED 359.8 million compared to the same period last year mainly due to increases in employment costs. However, it dropped compared to fourth quarter 2013 operating cost of AED 364.7 million.

 

The total impairment charge for the quarter stood at AED 130.3 million compared to AED 61.4 million at the end of the same quarter last year, however reduced by AED 27.2 million from the fourth quarter 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 2.3%.

 

“Our first quarter performance is in line with the message we have been sending to markets,” explained Peter England, RAKBANK Chief Executive Officer. “The focus for 2014 is to strongly grow the Bank’s top line to help buffer a level of net credit losses which is more representative of the on-going position for a loan book like ours after 2 years of abnormally low credit losses. We expect to see solid increases in top line performance over the next 3 quarters as the full impact of our loan pipeline starts to come through. We are seeing good solid growth in almost all of our lines of business and have managed to slow down the level of attrition through re-financing on our National loan portfolio,” said England.

 

During the first quarter of 2014, RAKBANK launched AMAL Home Finance solutions, Ijarah, to join AMAL’s growing portfolio of Islamic banking products which includes Debit and Credit Cards, Savings and Current accounts, and Personal, Auto and Business Finance.

 

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 27.6% 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 18.9% and advances to stable resources ratio was 91%. Total shareholder’s equity totaled AED 6 billion including current quarter profit.

 

The Bank is currently rated by following leading rating agencies. The following ratings have remained unchanged during the quarter.

 

 

Rating Agency Deposits Financial Strength Support
Moody’s Baa1 / P-2       D+ -
Fitch    BBB+ / F2 C 2
Capital Intelligence A-/ A2 BBB+ 2

 

 

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. A prominent player in small to medium enterprise finance and a leading provider of credit cards, the Bank received the title of ‘Bank of the Year’ in 2012 by Arabian Business Achievement Awards.

 

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

 

For media queries, kindly contact Lamis Daoud on +9714 291 5064 or via [email protected].

RAKBANK announced AED 1,430.8 million in net profit for 2013. In its maiden year, the Bank’s Islamic Finance division - AMAL - broke even ahead of target, recording a small profit of AED 3.0 million for the year. Gross loans and advances grew by 8.5% to AED 22.4 billion at year-end, AED 1.2 billion of which came from Islamic financing assets.

 

Total operating income increased by AED 257.2 million to AED 3.2 billion, an increase of 8.9% over 2012. The growth in total operating income over last year is due to a rise in loans, Islamic financing and investments, as well as strong performances in non-funded income streams like Bancassurance commission, fees from wealth management products, investment income and income from foreign exchange transactions.

 

Net interest income and income from Islamic financing grew by 5.5% largely on the back of continued focus on garnering low cost current and savings accounts. The underlying business growth for 2013 in most of the Bank’s key product lines has been strong but a significant reduction in the bank’s National loan portfolio, which was aggressively targeted by competitors during the course of 2013, dampened growth in loan interest income.

 

Non-interest income increased by 20.2% (AED 133.5million) to AED 793.4 million compared to last year due to a large contribution from investment income which increased by AED 78 million to reach AED 150 million.

 

However, overall growth in net profit for the year was subdued due to the Bank taking a further conservative stance on provisioning. The increase in total impairment charge to AED 340.6 million compared to last year’s AED 209.1 million was mainly due to an increase in impairment provisions related to one of the retail loan portfolios and a decision to maintain higher provisions for restructured loans.

 

Notwithstanding the above, nonperforming loans made up only 2.4% of the loans and Islamic Finance portfolio compared to 2.5% at the end of last year. Net credit losses to average loan advances remained low at 1.6% which is a testament to the bank’s high underwriting standards and asset quality.

 

“In 2013 RAKBANK continued to produce robust results, affirming the Banks strategy to focus on Personal and SME banking, continued focus on product innovation and customer service, and generally improving market conditions,” explained Peter England, RAKBANK Chief Executive Officer. “We have seen solid growth in the balance sheet for most of the Bank’s business lines. Fee income also grew very strongly for the year and costs were contained, further reducing our cost income ratio, all of which are very positive signs for the future. However, top line growth was affected by a significant reduction in our National loan portfolio, which was actively targeted for re-financing by other banks, and we also decided to take a further conservative stance with regard to loan provisioning throughout the year. Despite these headwinds, our loan pipeline and fee income momentum is looking very strong and RAKBANK remains firmly the number one bank in the UAE in terms of Return on Assets, Return on Equity, and Capital Adequacy,” added England.

 

During the year, RAKBANK opened its 34th branch, the first in the emirate of Fujairah, to complement its existing branch network in the country’s East Coast region. The Bank also launched the first dedicated Islamic Auto Finance Centre - Fast Lane - in Al Barsha, Dubai to offer AMAL Auto Finance solutions to car buyers in just 60 minutes. A firm believer in customer convenience, RAKBANK added new services on Online and Mobile Banking throughout the year. Even with investments in the Bank’s branch network and information technology, operating costs remained below the total operating income growth of 8.9%, indicating healthy profitability levels and cost income ratio even inched down to 43.8% compared to last year’s ratio of 44.3%

 

Customer deposits grew by 11% to AED 23.1 billion, of which AED 2 billion are Shari’ah-compliant deposits with AMAL.

 

Total assets grew by 10.6% to AED 30.1 billion. The major contributor to this increase was loans and advances and the investment portfolio which increased by 8% and 70% respectively. The Bank’s investment portfolio stood at AED 2.7 billion and is entirely denominated in USD or AED. The regulatory liquid asset ratio at the end of the year was 19.8% and advances to stable resources ratio stood comfortably at 88.1%.

 

The Bank’s Tier 1 ratio as per Basel II after considering the profit for 2013 and the proposed dividend was 29.01% at the year-end as against a requirement of 12% set by the U.A.E. Central Bank. We consider that this level of capital provides the Bank with ample room for growth during 2014.

 

Ratings

The bank is currently rated by the following leading rating agencies. The following ratings have remained unchanged during the year:

 

Rating Agency Deposits Financial Strength Support
Moody’s Baa1 / P-2       D+ -
Fitch    BBB+ / F2 C 2
Capital Intelligence A-/ A2 BBB+ 2

 

We are pleased to note that all of our ratings carry a stable outlook.

 

Dividend

The Directors, at the board meeting held on 29th January 2014 have recommended a cash dividend of 50% (subject to approval of Central Bank of UAE). The Directors consider that the Bank is well placed to meet the continuing challenges which will be faced during 2014. The dividend recommendations will result in 41.4% of net profit being retained within the Bank’s shareholders equity thereby increasing capital and reserves to strengthen the Bank’s overall position and provide support for future growth.

 

The Directors propose to increase the regulatory credit risk reserve by AED 26 million to align it at 1.5% of the Bank’s total credit risk weighted assets. These measures will increase the Bank’s shareholders’ equity to AED5.7 billion after payment of the proposed cash dividend.

 

 

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. A prominent player in small to medium enterprise finance and a leading provider of credit cards, the Bank received the title of ‘Bank of the Year’ in 2012 by Arabian Business Achievement Awards.

 

For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

 

For media queries, kindly contact Lamis Daoud on +9714 291 5064 or via [email protected].