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29/09/2021

The Webinar was hosted in partnership with Schroders

United Arab Emirates, 29 September 2021: The past couple of years have witnessed a shift in investor behaviour whereby investors started looking into different forms of sustainable finance options based on Environmental, Social and Governance (ESG) factors before deciding where to invest. 

While the general forms of sustainable finance are more or less common, the terminology and practices associated with ESG investing vary considerably. Therefore, The National Bank of Ras Al Khaimah (RAKBANK) decided to host an informative webinar session that was in partnership with Schroders, a global asset management company, through which they tackled main topics related to ESG factors that influence today’s world of investment. 

The webinar provided a platform for a large audience from existing and potential customers to gain further understanding around the practical aspects of the global ESG frameworks, policies and key factors impacting the investment trends. Additionally, Schroders covered topics such as increased incentives and business opportunities with regards to ESG.  

Peter England, CEO of RAKBANK, commented: “The Bank’s partnership with Schroders represents an important step in further strengthening RAKBANK’s position as a trusted financial partner for its ELITE banking customers. The educational webinar that we hosted gave the audience independent views on investment market trends, with a focus on topics related to ESG. This supports the Bank’s strategy of enhancing its offerings to help our customers as well as potential customers achieve their financial goals.”  
   
For his part, Kieron Franklin, Director of ELITE Banking and Wealth Management at RAKBANK, said: “At RAKBANK, we are committed to transparency and to provide customers with the necessary tools that truly meet their needs, not only to build their wealth but protect it as well. This is why we regularly host webinars and educational platforms that enhance our customers’ knowledge on latest trends such as ESG and their direct impact on investor behaviour. Partnering with Schroders for this webinar was a natural choice given their extensive knowledge about ESG in the region, as well as our aligned vision.”

ESG investing has been growing in popularity for some time, and is hitting mainstream now. Therefore, this virtual event was an opportunity to shed some light on how ESG practices are integral to build a responsible business environment and create long term value for customers and stakeholders alike. 

14/09/2021

Dubai, United Arab Emirates, 14 September 2021: In its constant efforts to promote cashless economy, Emirates Digital Wallet adds RAKBANK to its nationwide cashless ecosystem, klip. Emirates Digital Wallet, spearheaded by the UAE Banks Federation, operates klip with an aim to reduce the use of physical cash and supports the UAE government's efforts to drive digital transformation. 

Peter England, RAKBANK’s CEO, commented: 
“The use of traditional payment methods that rely on cash are progressively becoming obsolete, especially during this past year where the pandemic has directly influenced people’s behavior when it comes to physical contact with cash. It is important to invest in and grow in line with the needs of people in the UAE by offering convenient and integrated payment solutions that allow the development of a cashless society. RAKBANK is committed to the early adoption of the latest technologies and focuses on staying ahead of the global banking trends. In this regard, we are very pleased to be working with Emirates Digital Wallet, to provide safe and seamless digital payments options to our customers.”

Aref Al Ramli, CEO Emirates Digital Wallet stated: 
“We are fully committed towards achieving cashless economy and the new wave of banks joining the klip ecosystem is a testament of our efforts in the development and operations of state of the art nationwide cashless platform. Our strong growth in customers enrolling for klip and nationwide merchant acceptance with the help of our member banks uniquely position us to drive the conversion from physical cash to digital means thus empowering customers with an instant, safe and seamless mode of payment and more affordable acceptance option for merchants.”

“UAE economy has shown great resilience during Covid-19 and businesses have quickly responded to the unprecedented circumstances through the adoption of digital mode of payments. The change in user behavior will continue to evolve and we are expecting to see continuous growth in cashless payments.” – Aref concluded.

27/07/2021

• 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

05/07/2021

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.”

The agreement was signed by H.E. Eng. Ali AlSuwaidi, Director General of Ajman Free Zone and Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK.

09/06/2021

Abu Dhabi, 08 June 2021: Emirates Development Bank [EDB], a key financial enabler of the country’s economic diversification and industrial transformation agenda, has entered into a Memoradum of Understanding [MoU] with RAKBANK on Credit Guarantee and Co-lending programs for SMEs in the UAE.

Under the agreement, RAKBANK can offer up to AED 10 million financing to SMEs, and 50% of the facility amount will be either guaranteed or co-lent by EDB.

The program also aims to support UAE citizens in their startup journey by offering financing facilities of up to AED 1 million, wherein 60% is guaranteed or co-lent by EDB.

The MoU was signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Peter England, Chief Executive Officer at RAKBANK.

The MoU is part of EDB’s commitment to support the goals of the National Agenda to empower the country’s industrial sector and propel a sustainable national economy by boosting the SME ecosystem in the UAE as well as enhancing the contribution of SMEs to the country’s GDP.

Commenting on the partnership with RAKBANK, Ahmed Mohamed Al Naqbi, said: “At EDB, we aim to support companies and entrepreneurs to have access to wider financing options, which will serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development. Our MoU with RAKBANK will help in bridging the funding gap for SMEs in key sectors, which will not only strengthen the SME ecosystem but also pave the way for building a robust economy.”

In his comments, Peter England said: “This agreement is in line with the Bank’s commitment to advance and strengthen the SME’s presence in the country by offering them ‘Simply Better’ financial support and convenient banking solutions that best suit their needs. The development of the National economy is a top priority at RAKBANK and this partnership exemplifies that by supporting priority sectors in the country such as manufacturing, healthcare, infrastructure, food security and advanced technology, all while targeting a wider customer base by offering facilities to UAE Nationals and Expats alike.”

The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).

27/05/2021

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. 

24/05/2021

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.

20/05/2021

The New Bank Branch is Located in Business Bay

Dubai, UAE - 19 May 2021: RAKBANK recently opened a new RAKBANK Elite Center that is conveniently located in Dubai’s Business Bay, the heart of the city’s business district. The location of the new RAKBANK Elite Center offers RAKBANK’s valued Elite and Wealth Management customers easy and instant access to a wide range of financial solutions as well as their dedicated Relationship Managers.

Through its comprehensive Conventional and Sharia-compliant Islamic Banking services, RAKBANK is considered one of the fastest growing Wealth Management providers across the UAE. Offering a broad range of financial services and solutions that are tailored to meet the specific needs of our customers. At RAKBANK, our Relationship Managers work closely with customers to prepare a personalised plan based on an in-depth review of their financial goals. The opening of the Bank’s latest Elite center further adds to its already extensive list of branches and offices located across the UAE and reinforces its commitment to serve customers.  

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, said: “RAKBANK’s strategy is to constantly offer a combination of both convenient locations and enhanced Digital Banking solutions for a seamless and holistic banking experience, this ensures that the Bank caters to customers across all main locations and channels. The opening of the RAKBANK Elite center is in line with the Bank’s plan to expand its network and to explore and develop major Corporate and Individual relationships in the UAE.” 

“We recognize that the wealth management customer is always on the lookout for that ‘extra something,’ and this new branch being in a prime location along with additional customization of the banking experience is a roadmap milestone to exceeding such expectations,” commented Kieron Franklin, RAKBANK’s Director of Wealth Management. “We also understand that each customer is unique and requires a personalized approach to meet their needs and aspirations based on their profile, objectives, and lifestyle”, he added.

Peter England, RAKBANK’s CEO said, "Based on our experience and knowledge gained in today’s market, the Bank opened this new Elite center to offer our Wealth Management customers a dedicated and holistic approach focusing on key financial solutions such as an integrated wealth planning, global investment management, consolidated reporting, in addition to access to plenty of lifestyle privileges. RAKBANK is fully committed to placing our customers’ needs first and providing them with highly convenient, secure, and simple banking services.” 

For enquiries about RAKBANK Elite Banking and Wealth Management Services, please contact 8004048 or email rakelite@rakbank.ae.   

27/04/2021

• 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

31/03/2021

Dubai, United Arab Emirates, 31 March 2021: The National Bank of Ras Al Khaimah (RAKBANK) announced the launch of its extraordinary Emirates Skywards Mastercard World Elite Credit Card campaign that offers cardholders the opportunity to earn up to 160,000 bonus Skywards Miles.

As travel begins to pick up again, it is now the right time to start planning your vacation. RAKBANK Emirates Skywards Mastercard World Elite Credit Card, provides the best offer of up to 160,000 bonus Skywards Miles. New cardholders can earn bonus Skywards Miles from three main actions – Applying, Spending and Transferring:

• Receive 20,000 bonus Miles when signing up and paying the annual fee
• Get up to 80,000 bonus Miles upon transfer of outstanding balances from other non-RAKBANK cards. The balance transfer is being offered at 0% interest rate for 3 months and a 2.99% processing fee
• Earn 50% bonus Miles on spends in the first three statements

New cardholders can also enjoy a free one-night stay at Rixos Premium Dubai hotel upon successful completion of their application online on RAKBANK’s portal. Additionally, existing cardholders can also avail of the balance transfer offer and earn up to 80,000 bonus Miles.

The Emirates Skywards Mastercard World Elite Credit Card rewards cardholders with up to 40,000 Skywards Miles every month based on spends in Dirhams. This is accompanied by a complimentary Emirates Skywards Silver tier membership and the option to fast-track to Emirates Skywards Gold tier membership for both the primary and supplementary cardholder. Similarly, cardholders can also take advantage of a limited-period special monthly interest rate of 2.5%. 

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, said:

“When designing this card and its campaign, we considered three main factors. Firstly, we made sure it truly offers the best value for customers versus what is available in the market whereby we made it simple for our cardholders to know exactly how many skyward miles they are earning, based on their spends in dirhams. Additionally, we designed this card with an innovative concept that was targeted at capturing customer needs with regards to lifestyle benefits like shopping, staycations and more. Lastly, we created options to reward cardholders for every action they take – whether joining, or spending or transferring balances, or maybe even choosing to do all. We truly believe we have created something unique in the market – such offers are hard to come across and cardholders should make the most of it. The best opportunity to save on Skywards Miles is here. The time to act is now.”

02/02/2021

• 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.”

Financial highlights

04/01/2021

United Arab Emirates: The National Bank of Ras Al Khaimah (RAKBANK) has announced the renewal of its partnership with the Fintech platform Invoice Bazaar. The renewed partnership is in line with the Bank’s strategy of creating an efficient ecosystem and environment for SMEs by offering unique financial solutions to e-commerce traders that include a comprehensive suite of banking services, short term working capital loans, cloud based accounting solutions, and instant access to RAKBANK SMEsouk portal.

The e-commerce solution is available to SMEs and retailers of all sizes, including Start-ups with RAKstarter Zero Balance Account. Additionally, the solution covers businesses’ preferential terms on Point of Sale (POS) terminals, mPOS and all other payment gateways. The financial solutions offered by RAKBANK through Invoice Bazaar platform are short term loans to the small and medium businesses that supply bigger e-commerce players against receivables generated on the e-commerce portal.

Commenting on this strategic partnership, the Managing Director of Business Banking at RAKBANK, Dhiraj Kunwar, said:

“We at RAKBANK have always looked towards providing all-encompassing banking solutions to our business customers of all sizes. This past year has seen a surge in e-commerce trends, which has definitely been fuelled by the recent pandemic, and this resulted in a shift in the way businesses are operating and what the new normal means for them. It is key that we renew our partnership with the distinctive fintech solutions offered by Invoice Bazaar to create a seamless financing experience for all our business customers. We actively encourage our customers to create an online presence and bank digitally.”

Anand Nagaraj, the Co-founder and CEO of Invoice Bazaar, said:

“RAKBANK has been our first partner Bank on the Supply Chain Financing platform, and we are once again extremely pleased that RAKBANK is the first Bank to partner with us on the e-commerce proposition. The scope is wide in that domain and while we, at Invoice Bazaar, have made significant progress in our e-commerce offering and we will continue to focus our efforts to better understand the various facets of this specific area. RAKBANK is the biggest SME bank in UAE and this partnership will help us reach the SMEs who derive a large amount of revenue from online orders, and who would otherwise face challenges finding the appropriate financing solutions for their business model and scale of operations.”

14/12/2020

MetLife, one of the largest global providers of insurance, annuities, and employee benefit programs, has announced a 10-year strategic preferred partnership with The National Bank of Ras Al Khaimah (RAKBANK) to provide comprehensive life insurance solutions to the Bank's customers across the United Arab Emirates. The partnership offers a versatile and highly competitive life insurance solution for the Bank’s customers with the highest non-medical underwriting limit of USD 1.25 million, exceptional maturity value, and an intuitive digital-first sales and service platform, Mpower. 

Commenting on the partnership, Dimitris Mazarakis, General Manager – MetLife Gulf, said: “We are delighted to have a partner that shares our vision of putting customers first. Beyond helping people build their financial future, we have a responsibility to show them how to protect it. Through this partnership, we will ensure that we offer products that deliver more features that reassure our policy holders that they’ll be covered, no matter what.”

Frederic de Melker, Managing Director of Personal Banking at RAKBANK said: “By signing this 10-year agreement, MetLife joins RAKBANK’s effort to build transparency and customer benefit into the market of life-bancassurance.  The digital and price efficiencies that result from our partnership will integrally translate into customer value through efficient product propositions. Leveraging state of the art digital capabilities, as well as the introduction of ‘Mpower’, supports the selection of products and services that meet the individual insurance needs of any RAKBANK customer.”

He further added: “Bancassurance is a key focus for RAKBANK and an important part of our overall customer value proposition. MetLife’s strong customer focus and deep commitment to the region are aligned with our own vision. We look forward to collaborating further with MetLife across our network in the UAE.”

The long-term preferred partnership was signed at a ceremony that took place at RAKBANK’s head office, by Frederic de Melker, Managing Director of Personal Banking at RAKBANK and Dimitris Mazarakis, General Manager of MetLife Gulf. 

24/11/2020

National Bank of Ras Al Khaimah (RAKBANK) today held a virtual conference explaining how sweeping changes to UAE legislation governing the selling of Life Insurance and Family Takaful products would have a positive effect on the life insurance sector in the United Arab Emirates. The live conference, Life Insurance Comes of Age in the UAE, was hosted by Peter England, CEO, RAKBANK and Frederic De Melker, MD of Personal Banking, RAKBANK in partnership with Dimitris Mazarakis, MetLife Gulf General Manager.

During the event, RAKBANK and MetLife explored the impact of the evolving regulatory landscape within the UAE, and how it is helping increase consumer confidence in the new products on offer. 

The new regulations, known as UAE Insurance Authorities’ Board of Directors Decision 49 (BOD 49) of 2019, will make the new life insurance policies more transparent and customer-focused, while making insurance companies as well as distributors’ more accountable and responsible to the customers.

The hosts also examined the potential costs of being uninsured as well as risk of being under-insured, particularly during a global pandemic. With a current penetration rate of less than 1%, the panelists agreed that COVID-19 may prove to be a catalyst for changing attitudes toward life insurance among expats and nationals in the UAE. Over half of those with insurance are underinsured, according to LIMRA. 

Peter England, CEO, RAKBANK said: “Regulatory progress in the insurance industry as a whole is serving to boost customer appetite for insurance products, however the life insurance segment remains underpenetrated, however that is changing. The impact of the COVID-19 pandemic is causing increased interest in life insurance products in the UAE as expats and nationals are feeling a sense of urgency to ensure adequate financial planning to mitigate the impact of life’s unforeseen events. With customers focused on managing their portfolio and investing in the products they need to provide genuine security and peace of mind for themselves and their families, we chose to partner with MetLife to offer customers a new and simple value proposition that is transparent and accessible through a digital platform, M Power.”

Dimitris Mazarakis, General Manager, MetLife Gulf, said: “At MetLife, we are pleased to partner with a leading bank such as RAKBANK in order to provide increased accessibility to our products. Although people recognize the need to protect themselves and their families, life cover penetration remains low due to a disconnect between what they know they should be doing and taking steps to put cover in place. It is important for people to take suitable financial advice to ensure they have a sufficient level of cover in place, especially if they intend to stay in the country long term.”

Frederic de Melker, Managing Director of Personal Banking, RAKBANK said: “At RAKBANK, we are committed to transparency and to providing customers with products that truly meet their needs in order to not only build their wealth but protect it. This is why we have leveraged state of the art digital capabilities, in order to support the selection of products and services that meet RAKBANK customer’s individual insurance needs. ‘M Power’, MetLife’s digital platform, will benefit our customers through cost efficiency, convenience and accessibility. Partnering with MetLife was a natural choice given their extensive knowledge of the region as well as our aligned visions.”

The conference follows the news of the 10-year strategic preferred partnership between RAKBANK and MetLife to provide comprehensive life insurance solutions to the Bank's customers across the UAE.

25/10/2020

The National Bank of Ras Al Khaimah (RAKBANK) and the Ministry of Finance are proud to present the third generation of eDirham, cashless payment platform that empowers users to make transactions easily as it is a seamless, convenient and secure medium that focuses on immersing digital transactions across the country for the government sector. 

RAKBANK is one of the partnering banks of the eDirham payment scheme as an eDirham acquiring bank that will be made readily available in the coming weeks to several government entities across the country starting with the respectable Ministry of Energy and Industry. Similarly, number of federal Ministries and Authority will follow suit including several Ras Al Khaimah government entities. 

As an early adopter of the eDirham, this initiative also encompasses an integrated ability by the Bank to issue eDirhams through the RAKBANK digital banking platforms for individual and business customers to make payments seamlessly. Additionally, the Bank’s customers can use the eDirham mobile app itself to make payments by simply linking it to their RAKBANK account. This easy and safe method of electronic payment and collection of revenue for both government and non-government fees are in line with Abu Dhabi’s 2030 vision on effective economic transformation across all sectors.   

H.E Engineer Sharif Salim Al Olama, Under-Secretary of the Ministry of Energy and Infrastructure said: 
“The eDirham highlights the UAE’s outlook that is based on a green economy and supported by knowledge and sustainable development. The eDirham offers users a more innovative, convenient, safe and effective system that contributes to the completion of transactions in a smooth, safe and efficient manner.”

H.E. Saeed Rashid Al Yateem, Assistant Undersecretary of Resource and Budget Sector at MoF said: 
“The Ministry of Finance is keen to cooperate with various banks and financial institutions to expand the adoption and development of the eDirham system, and enable local and federal government entities, and private sector institutions in the country to efficiently and effectively collect fees. This falls in line with the objectives of the National Agenda of the UAE Vision 2021 that is aimed at improving the quality of services provided to individuals and companies.”

HE added: “MoF continues to bolster the eDirham system, and keep pace with the digital transformation in the financial services it provides, in order to meet the current and future requirements of government services fees’ payments, and contribute to achieving the vision of our wise leadership in spearheading the future.”

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, said:
“RAKBANK is honoured to play an integral role in the enhanced third generation eDirham. The increased use in smartphones and smartwatches relative to the internet and mobile data penetration in the country has resulted in the significant growth and constant development of the digital payment landscape in all sectors and industries, especially government. Whether you are using eDirham as an individual or an organization, you will fully enjoy the convenience of cashless payments that are fast, simple and secure. What’s more, eDirham’s transactional rates are highly competitive”

Peter England, Chief Executive Officer at RAKBANK, said:
“The third generation of eDirham is an innovation of the Ministry of Finance that aims to transform the market of cashless transactions and contribute to a more technologically advanced society. The world of financial innovation is constantly evolving and the Bank’s main commitment is to support the burgeoning digital payments environment as it is imperative and in line with RAKBANK’s ultimate objective of being part of the change and playing a prominent role in its constant development.” 

eDirham proudly embraces the UAE’s national identity and vision of a knowledge-based economy, it will be an elevator that contributes to a more efficient, transparent, knowledge-driven and future-focused society. Recognizing that innovation must be an ongoing process, eDirham will be an innovator that continuously crosses new frontiers of financial evolution to keep its audience in sync with global disruptions and will deliver diverse benefits to its users, as an accelerator that speeds up a new generation of convenience, security, efficiency and overall customer happiness in cashless transactions.

22/10/2020

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.

Financial highlights:

Income statement highlights

05/10/2020

RAKBANK is proud to announce the second edition of its annual SMEsouk Business Conclave in partnership with Abu Dhabi Global Market (ADGM) and ARN’s Dubai Eye. The event was hosted virtually due to the current Covid-19. The Bank recognizes the importance of creating a supportive ecosystem during this pandemic for SMEs by equipping them with useful information, tools and solutions that assist them in running their operations efficiently, effectively and sustainably.

The event’s keynote speaker, Mr Khalid Banizama – Director of Industrial Development at the Abu Dhabi Department of Economic Development (ADDED), kick started this year’s Business Conclave with top level information on how ADDED supported SMEs and will continue to do so throughout the year. The panellists were made up of a team of experts from across industries that focused on delivering guidance and advice to small businesses on how to readjust their operating model. Highlighting how SMEs are coping in the current health crisis and covered the inevitable change in business models that’s happening as means to adapt and transform into the ‘new normal’. 
 
Business Conclave culminated with an interesting panel discussion and a Q&A session, which revolved around information relevant to SMEs, Covid-19 and the broader economy. Panellists this year were made up of experts from various sectors and industries: Steve Barnett – Executive Director of Business Development at ADGM, Anouar Idrissi – Chief Executive Officer of Edenred, Meher Mirchandani – Managing Director of Palmon Group, Sudhir Kumar – Partner and Head of Corporate Communications of Kreston Menon Group, and lastly Dhiraj Kunwar – Managing Director of Business Banking at RAKBANK. 

The Bank aims to address SME needs and requirements by offering them access to information, digital solutions and continued support that would assist SMEs to navigate through the current climate and beyond.

Peter England, RAKBANK CEO, said: 
“We are the leading SME bank in the country, and this is because SME needs and requirements are placed at the core of our strategy. Our aim at this juncture is to play an integral role in assisting SMEs during this health crisis by providing the right solutions and information that help them run their operations efficiently and sustainably. At RAKBANK, we believe in supporting SMEs and the second edition of the SMEsouk Business Conclave further reinforces our objectives of continuously offering a wide range of services and solutions that helps small businesses reach their full potential, especially during these trying times.”

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. 

Financial highlights:

Income statement highlights

22/06/2020

In line with the strategies of the UAE Government and the World Health Organization on flattening the curve of the novel coronavirus (COVID-19), RAKislamic, the Islamic Banking window of RAKBANK, is playing an active role in containing the spread of the virus by partnering with Thumbay University Hospital, in an initiative to sponsor the swab tests and medical screenings of blue collar workers based in Dubai and Ras Al Khaimah. 

The initiative will prioritize blue collar workers who are showing evident symptoms of the virus and the COVID-19 test results will be delivered within 24 hours of the swab test. Laborers in Ras Al Khaimah are to visit the Thumbay University Hospital, Al Jerf in Ajman, while the ones in Dubai will be visiting the OPD Complex, Thumbay Hospital in Dubai.

Abdul Karim Juma, Director of RAKislamic, said: “RAKislamic is proud to sponsor the medical screening and swab tests of blue collar workers that are employed by small and medium Contracting and Construction companies based in Ras Al Khaimah and Dubai. This initiative focuses on helping companies mitigate the effects of the Pandemic, which is in line with the support and guidance offered by the Higher Sharia Authority. We believe that stopping the spread of the virus is a collective effort and the Bank aims to support the UAE government’s objective of containing the disease through increasing the number of tests and medical screening to those that can’t afford it. Working with Thumbay University Hospital has been an absolute honor, the medical industry in its entirety are the unsung heroes of this health crisis.”

Peter England, CEO at RAKBANK, Added: “RAKBANK understands the importance of everyone’s role in serving the community, and in this case, I am delighted to see blue collar workers get access to the medical attention and services they so need during this difficult time. With Thumbay University Hospital taking the lead, this initiative will contribute to contain the virus and stop it from further spreading across the country.”

Mr. Akbar Moideen Thumbay, Vice President of the Healthcare Division of Thumbay Group, said: “Right from the onset of this pandemic, Thumbay Group's healthcare division, with its networks of academic hospitals and clinics, have been on the frontlines of response and care. We have always considered it our responsibility to help our communities stay healthy and safe, and hence, we are glad to join hands with corporate organizations, to extend our resources and facilities for the benefit of the needy. This is also in line with our commitment to actively support the efforts of the UAE government in the fight against COVID-19.”

10/05/2020

RAKBANK announced today the expansion of its RAKMoneyTransfer (RMT) services into the Bangladeshi corridor by partnering with Bank Asia, a third generation Private commercial bank. The Bank’s RMT service now facilitates transfers to Bank Asia accounts within minutes and to any other bank account in Bangladesh within 24 hours, and will be offered free to customers until June 30th.

Leveraging RippleNet blockchain technology, this new instant remittance solution to Bangladesh will be free during these difficult times, and customers can send money to their families back home quickly, providing them with the support they most definitely need throughout this health crisis.

The secure RMT service uses Ripple’s blockchain platform and enables instant transfers at competitive rates with no hidden fees or deductions made by the beneficiary bank. The transactions can be done selecting the RMT service via RAKBANK’s award winning Digital Banking platform. The comprehensive digital service is available 24X7 and can be accessed at your convenience, wherever you are.

RAKBANK’s CEO, Peter England said: “We want to bring peace of mind to the Bangladeshi expat community in these challenging times by offering them a unique and comprehensive remittance solution via the Bank’s RMT services. In line with our strategy of placing our customers’ needs at the core, this solution empowers the Bangladeshi expats to instantly and securely send money back home to Bangladesh in just a few simple clicks through our award-winning digital banking app, with no hidden fees and at competitive rates.”

Bank Asia’s President and Managing Director, Md. Arfan Ali said: “We are happy to partner with RAKBANK to offer this new instant remittance solution to our expats. This solution is going to mark a new chapter in the history of remittance payment in our country. Considering the current COVID-19 pandemic situation, we have jointly waived remittance charges to help our expats send money easily to their beloved families back home.”