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29/04/2018

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. 

04/04/2018

RAKBANK today hosted the launch of Metals Focus Gold 2018 Annual Report at its Dubai Headquarters located in Dubai Silicon Oasis. Metals Focus, one of the world’s leading independent precious metals research companies, has released its much anticipated Gold report in the Emirate to coincide for the first time with similar launch events in London, Mumbai and Toronto on the same day.

At the launch of Gold Focus 2018, RAKBANK introduced its RAKGOLD initiative, a division of its Treasury department, which represents the establishment of the Middle East region’s first full service end-to-end Bullion Banking unit. 

The event was attended by Peter England, RAKBANK CEO, Philip Newman, Director at Metals Focus, Neil Meader, Research & Consultancy Manager at Metals Focus, Vikas Suri, Managing Director of Treasury at RAKBANK, Jeffrey Rhodes, Principal Consultant to the RAKGOLD project and Founder of Rhodes Precious Metals Consultancy DMCC, along with other top management from RAKBANK and Metals Focus.

Speaking on the occasion, Peter England, RAKBANK CEO said, “We recognize the strong appeal for investing in physical gold across the UAE with many people having an unshakeable belief in the security and safe haven status that the yellow metal offers. The Bank is delighted to be associated with Metals Focus, given its highly regarded position in the global precious metals industry, and we see this landmark event as a statement of intent as RAKBANK rolls out its RAKGOLD initiative that will contribute to the future development of the region’s bullion market”.

Vikas Suri, Managing Director of Treasury at RAKBANK said, “RAKBANK began its involvement with the gold sector two years ago with the establishment of wholesale gold loan activities; over the last twelve months we have been working on developing the required infrastructure to enable the Bank to offer its Corporate clients, both Conventional and Islamic, as well as Retail, a wide range of suitable products and services that will support the physical gold sector in the UAE”.

Philip Newman, Director at Metals Focus said, “We are delighted to partner with RAKBANK on the launch of our annual Gold Focus 2018 report given their plans to establish full service bullion banking operations and we look forward to developing a deep and long lasting relationship”.

01/04/2018

In line with the Bank’s strategy in offering its customers a more holistic banking experience, RAKBANK recently announced the launch of the contactless* cash withdrawal facility that is available on more than 170 NFC enabled ATMs. The Bank has more than 200,000 active cardholders that are able to use their NFC enabled RAKBANK credit or debit card at any of the NFC enabled ATMs to conveniently withdraw cash. The integration of additional FinTech models into the Bank’s operations will provide new opportunities for customers similar to the Apple Pay and Samsung Pay experience, which were rolled out back in 2017. 

The Bank is committed to strengthen its Digital Banking services to customers, whereby cardholders do not have to register to gain access to this convenient service or take any unnecessary steps to use the facility. All cardholders need to do is to tap their cards on the clearly marked NFC reader that is available on RAKBANK ATMs and then enter their PIN and amount required to withdraw their cash. 

“RAKBANK has always been at the forefront of empowering customers with technology-based solutions that save them time, effort and money. While maintaining a customer-centric approach, the Bank built on the achievements of the previous year and set the scene for continued future growth, which emphasized the importance of innovation,” said RAKBANK COO, Geoff Stecyk. “This launch is the first of its kind in the UAE and is firmly aligned with the Bank’s focus on innovation to leverage emerging technologies in delivering new and personalized experiences that help our customers’ access simply better digital banking solutions,” he added. 

The Bank will continue to find ways to improve efficiency, and engage in strategic partnerships that will give the Bank a competitive edge in the market. Looking ahead, RAKBANK will continue to look to FinTech and other innovative solutions as it invests in product, service and technology enhancements. This will help the Bank offer the fullest possible range of products and services to its customers.

*Availability
Currently this facility is only available for RAKBANK Contactless Cards.

15/03/2018

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.

05/03/2018

RAKBANK provides bill payment solutions to customers based in Ras Al Khaimah, Ajman, Umm al Quwain, Fujairah and Sharjah.

RAKBANK is pleased to announce its recent partnership with Federal Electricity & Water Authority (FEWA). The partnership will facilitate FEWA bill payment solution through the Bank’s Digital Banking platform and other touch points for RAKBANK customers that live and have businesses in the emirates of Ras Al Khaimah, Ajman, Umm al Quwain, and Fujairah. 

Similarly, last year the Bank signed an agreement with Sharjah Electricity & Water Authority (SEWA) to facilitate the bill payment via its Digital Banking Platform for customers in Sharjah. The SEWA bill payment service offered to the Bank’s customers has currently been enhanced and they can now pay their bills through other touch points such as the Interactive Voice Response technology (IVR). 

Geoffrey Stecyk, COO of RAKBANK, said: “In line with the Bank’s commitment to strengthen its Digital Banking services to customers, the partnerships with FEWA and SEWA make a tedious task such as paying bills seamless. We are delighted to offer RAKBANK customers convenient, secure, and simple bill payment solutions through all the different touch points. This service means customers can take advantage of our effective Digital Banking platform to pay their bills on time from the comfort of their own home.” 

18/02/2018

The National Bank of Ras Al Khaimah (RAKBANK) today announced a strategic partnership with Etisalat’s ‘Hello Business Hub’, a one-stop location that enables small and medium businesses (SMBs) and start-ups to set up their operations in the UAE. 

RAKBANK will provide Business Banking solutions at preferential terms to SMBs who visit Etisalat’s specialised business hub that opened this week at ONE JLT, Jumeirah Lake  Towers,  in Dubai. The strategic partnership will assist eligible start-ups and companies to gain access to RAKBANK’s suite of Business Banking products and solutions. 

“As one of the largest SMB banks in the region, we are delighted to have partnered with Etisalat. This is in line with our strategy of assisting businesses where we focus on offering customized solutions that support their entrepreneurial journey. This opens up a new platform to introduce the Bank’s services to start-ups and companies. In addition, we see a tremendous opportunity in serving new businesses coming to the UAE through Etisalat’s ‘Hello Business Hub,” said Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK.    

“Today’s launch of the ‘Hello Business Hub’ represents a major milestone of our company’s global strategy and commitment to help meet the needs of the sector. We are pleased to be in partnership with RAKBANK, which furthers our commitment to offer tailored advanced solutions to SMBs to fuel their growth in the digital economy. Etisalat has successfully collaborated with more than 300,000 SMBs across industries. With Etisalat's corporate strategy focusing on 'Driving the digital future', it is working closely with all its partners, including SMBs, to transform their businesses by investing in digital services and solutions,” said Esam Mahmoud, Acting Senior Vice President, Small and Medium Business, Etisalat. 

Etisalat has introduced its ‘Hello Business Hub’ as part of its continuous efforts to facilitate the setup of businesses in the UAE and cementing the position of the small business segment. Along with RAKBANK as the exclusive banking partner, this most recent initiative is a great platform to serve SMBs and start-ups coming to the UAE by addressing the challenges and pain points of setting their business. In addition to banking solutions the other services offered include company registration and licensing, insurance, office leasing, furniture, digital marketing solutions, business devices, among others. 

30/01/2018

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. 

21/01/2018

RAKBANK is pleased to announce that the second edition of RAKBANK Ride – one of the most anticipated cycling events in Ras Al Khaimah that attracted more than 500 cyclists. The ride, which was approved by the UAE Cycling Federation, started and finished at Al Marjan Island - one of the key touristic development zones in Ras Al Khaimah. The Ride was split into three courses; the 85 km course for the experienced cyclists, in addition, there were two fun rides with a distance of 30 km and 10 km respectively. The 85 km race had to be curtailed to 65 km due to heavier-than-usual traffic, which despite traffic management created a slight safety risk for cyclists as the race progressed, and the decision was made to stick to a shorter but similarly challenging course, which traversed many of the main roads of Ras Al Khaimah. The new 65 km course produced some exceptionally fast cycling, with the fastest riders averaging speed of over 45 km/h.

28/11/2017

RAKBANK announces the launch of its new Savings Deposit account called Recurring Deposits that offers easy access to customers’ funds, guaranteed principal, and the ability to earn up to 2.5% interest on their savings. With a minimum tenor of 12 months and a maximum of 5 years, the Recurring Deposits account is particularly ideal for customers that are planning to practice financial discipline, receive guaranteed returns, and gain high interest rate on their savings. Additionally, the Recurring Deposits requires a low monthly deposit of only AED 350 to be setup and there are no penalties or charges for missed payments. Customers can open a Recurring Deposits account instantly through the Bank’s digital banking platform and start saving immediately.

Peter England, RAKBANK CEO, said: “The Bank’s Recurring Deposit is a simple way for all our individual customers to implement savings as a financial obligation and turn it into a positive habit. People are burdened with expenses on a daily basis, where the option of savings is constantly set aside due to other obligations. Our Recurring deposit helps our customers take small steps towards achieving their financial goals and save money for their future and for when they would like to purchase any big-ticket item. With extremely flexible terms, high interest rate on savings, and a very low monthly deposit limit, the Recurring Deposits will offer our valued customers more convenience and choice regarding their savings plan for their future.”

23/11/2017

RAKBANK is the first bank in UAE to partner with Ripple to leverage on its global BlockChain network (RippleNet) to power cross border payments. Recognizing the rising power of blockchain in today’s markets, the Bank’s tie up with Ripple has enabled the launch of instant, frictionless, and secure money transfer services through RAKBANK’s award winning* RAKMoneyTransfer (RMT) to Axis Bank account holders based in India using the power of Blockchain. These live retail remittance payments from RAKBANK to Axis Bank reach their destination account in seconds and with end-to-end visibility over the journey of the payment.

Joining RippleNet forms a part of RAKBANK’s commitment to support the significant and growing remittance flows from the UAE to India, as well as other major remittance corridors in the region. With the potential to connect to RippleNet’s more than 100 members, the Bank plans to roll out its Ripple-powered RAKMoneyTransfer remittance service to other markets. The Bank‘s strategic partnership with Ripple changes and revolutionizes the method in which money transactions are processed, which is beneficial to the customer as it is both time and cost effective. 

Peter England, RAKBANK CEO, said: “We at RAKBANK believe in leveraging new technologies that constantly enhance our customer experience and by using Ripple’s Blockchain solution to power international payments, our customers can now send money home easily and in real time. Joining the Ripple network is in line with not only our Blockchain strategy, but it also allows us to expand our remittance footprint. This will help us scale our business and provide our customers with a first-class digital payments experience.”

Himadri Chatterjee, President, Transaction Banking, Axis Bank, said, “While there have been significant innovations in domestic payments, cross border remittance has seen limited developments. Using APIs and distributed ledger technology, there is an opportunity to radically change the way international payments are handled. We are excited with the potential of the technology to bring innovative services to the market and help us enhance value to our customers

06/11/2017

‘RAKBANK Pay’ Brings Payment Solutions to a New Level with the Enhanced Merchant Acquisition Business

RAKBANK is entering into the merchant acquisition business with ‘RAKBANK Pay’ by offering merchants across the country the ability to accept electronic payments safely and securely using the latest technology across all channels. In line with the Bank’s strategy to diversify its portfolio, this will provide RAKBANK’s large SME and Corporate customer base and the wider UAE merchant community with cost effective payment acceptance solutions coupled with superior service delivery.

The payments industry landscape is rapidly evolving and this has increased the need to provide new technological solutions to merchants. The Bank will provide both the merchant and the individual customer with real-time, frictionless, flexible, seamless and scalable transactions through Point of Sale (PoS) operations, mobile Point of Sale (mPoS), and e-commerce/online payment solutions.

Aligned with the Bank’s commitment to bring ‘Simply Better’ banking to the UAE market, ‘RAKBANK Pay’ delivers innovation in the current payment acquiring landscape. What differentiates ‘RAKBANK Pay’ from other payment solutions is that it will provide innovative acquiring services and solutions to support the ever-changing needs of merchants, besides offering traditional payment acceptance methods.

Peter England, RAKBANK CEO, said: “The Bank’s entry into merchant acquisition gives us the opportunity to support our SME and corporate customers. This will also allow the Bank to focus on its client acquisition, relationship management, and product development activities to bring innovative and customer friendly payment solutions to the UAE market with an aim to make payments simpler and safer. We are delighted to have formed a strategic partnership with Etisalat as our managed service provider for our Merchant Acquiring business to enhance the customers’ journey. The Bank is always finding new ways to offer our valued customers more flexibility, convenience, and choice regarding their everyday banking requirements,”

05/11/2017

Ras Al Khaimah, UAE - 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.

24/10/2017

RAKBANK today brings its customers Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay that’s fast and convenient.
 
Apple Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by credit and debit cards. To begin, customers just need to add their RAKBANK credit, debit or prepaid card to Apple Pay and can simply use it in store with iPhone SE, iPhone 6 and later, and Apple Watch. 
 
Security and privacy are at the core of Apple Pay. When you use a credit or debit card with Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device. Each transaction is authorized with a one-time unique dynamic security code.
 
“RAKBANK has always been at the forefront of empowering customers with technology-based solutions that is aimed at saving them valuable time,” said RAKBANK CEO, Peter England. “Apple Pay perfectly exemplifies a digital solution that offers our customers more flexibility, convenience, and choice by providing them access to world-class technology at their fingertips,” added England.
 
In addition, RAKBANK is one of the first banks in the UAE to launch Apple Pay on more than 100 contactless (NFC) enabled ATMs. This allows the Bank’s customers to make cardless cash withdrawals from ATMs using their iPhone or Apple Watch without the need for a physical debit or credit card. 
 
In stores, Apple Pay works with iPhone SE, iPhone 6 and later Apple Watch. Using Apple Pay in stores means fewer queues and less time spent making a payment. 

Online shopping in apps and on websites accepting Apple Pay is as simple as the touch of a finger with Touch ID, so there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information. When paying for goods and services on the go in apps or Safari, Apple Pay works with iPhone 6 and later, iPhone SE, iPad Pro, iPad Air 2, and iPad mini 3 and later. You can also use Apple Pay in Safari on any Mac introduced in or after 2012 running macOS Sierra and confirm the payment with iPhone 6 or later or Apple Watch, or with Touch ID on the new MacBook Pro.

Click here for more information on Apple Pay.

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.

16/10/2017

In its strive for added customer convenience and banking simplicity, RAKBANK recently upgraded its RAKselect service across Conventional and Islamic Banking. With a strong focus on providing convenient services to the different customer segments, the Bank is extending RAKselect service to a wider customer segment by offering them access to a more customized banking experience with new benefits and privileges. 

RAKselect has been made available to customers who are earning a monthly income of AED 20,000 and above. All RAKselect customers will automatically start earning interest on their RAKselect accounts. Customers can also use the RAKselect banking areas across all the Bank’s branches. Preferential treatment at Teller counters, preferential tariff on select banking services and access to Personal Financial Consultants (PFC) who will assist them with their investment and insurance needs, will all be available to these customers. In addition, the limit on withdrawals has been enhanced to AED 20,000 and AED 50,000 on customers’ RAKselect Debit Cards on ATM withdrawals and retail spends respectively. Customers can also apply for the Bank’s newly launched ‘High Fliers’ Credit Card or any of RAKBANK Conventional or Islamic Credit Cards based on income and eligibility*. Additionally customers who meet certain Asset and Investment thresholds will also be qualified for RAKselect.

“RAKBANK prioritizes convenience in the customer’s banking experience. We are committed to offering our customers the highest possible standards of service with a full range of benefits and exclusive banking services that keep pace with their lifestyle,” said RAKBANK CEO Peter England. “We are pleased to announce the significant upgrade of RAKselect service to accommodate our customers’ needs,” added England. 

*Click here to learn more about RAKselect eligibility criteria

10/10/2017

Bank ABC (Arab Banking Corporation (B.S.C.)), First Abu Dhabi Bank PJSC (FAB), and Standard Chartered Bank, acting as the Initial Mandated Lead Arrangers and Bookrunners, successfully closed a debut US$350 million 3-year Syndicated Term Loan Facility for The National Bank of Ras Al Khaimah (P.S.C) (RAKBANK). 

The Facility was signed on 9th October 2017 and will be utilized by RAKBANK for general funding purposes. 
 
The syndication was launched at US$250 million on 8th August, 2017 and the facility was well received by the market and oversubscribed on the back of strong participation from regional and international banks. RAKBANK decided to upsize the facility size to US$350 million. A total of 22 banks from the GCC, Europe and Asia participated in the Facility.  
 
RAKBANK is rated Baa1 (stable) by Moody’s and BBB+ (stable) by Fitch Ratings. 

The emirate of Ras Al Khaimah will see the return of the RAKBANK Ride, which it has been announced will take place on January 19th 2018.

The cycling event, which first took place in 2015 and attracted over 500 participants, will be a major event on the UAE cycling calendar and will take place over a 85km course. The ride start and finish will be in Al Marjan Island, one of the key tourism development zones in Ras Al Khaimah. A 30km course and a 10km “fun ride” course will also be available for less experienced cyclists. The RAKBANK Ride will further place the spotlight on Ras Al Khaimah, which has several challenging routes for cyclists and has earned a reputation as a growing destination with the UAE and beyond for cycling and sports activities in general.

Commenting on the announcement, Peter England, RAKBANK CEO, said “Recognizing the growing number of cyclists in the UAE, we are pleased to announce the return of RAKBANK Ride to our home emirate of Ras Al Khaimah. RAKBANK Ride aims to promote the sport of cycling, a healthy and active lifestyle, as well as to showcase the most mountainous landscapes in the emirate. We at RAKBANK believe in the value of getting office employees away from their desks for team bonding exercises as a healthy body leads to a healthy mind.” 

The event is being overseen by Big Wheel Marketing, and Founder / CEO Steven Rice said “Ras Al Khaimah’s natural assets make it a perfect location for a wide range of sports, and none more so than cycling. Being home to Jebel Jais, which is the highest mountain in the UAE, and with a steady increase in the awareness of the emirate, we are now seeing regular groups of cyclists coming to Ras Al Khaimah from locations all over UAE and the wider GCC countries, who enjoy the challenging yet uniquely beautiful cycling routes available. We are confident that the RAKBANK Ride will be a successful event and will remain a fixture on the cycling calendar for many years to come”.

The RAKBANK Ride partners include Hopasports, who provide the online event registration page at https://www.hopasports.com/event/rakbank-ride-2018, on-the-ground organization and logistics services partner Revolution Cycles, and Promoseven  Sports Marketing. The Double Tree by Hilton Hotel, Marjan Island, is the partner hotel for the event and has provided a selection of special accommodation offers for race entrants. The RAKBANK Ride is approved by the UAE Cycling Federation and will be supported by the RAK Police.

13/09/2017

RAKBANK is pleased to announce the arrangement of a AED 125 million credit facility to Reem Finance PJSC, a private joint stock company incorporated in Abu Dhabi, focusing on commercial lending to a wide range of businesses. Reem Finance provides innovative and tailored commercial financing solutions across the UAE with agility and quality of execution.

The loan facility was signed at the Reem Finance PJSC’s office in Abu Dhabi. Attending the ceremony were Mustafa Kheriba, Reem Finance’s Board Member, Howard Kitson, Reem Finance’s Chief Executive Officer, and Peter England, RAKBANK’s Chief Executive Officer, along with Rajan Khetarpal, RAKBANK’s Board Member, and other senior representatives from RAKBANK, and Reem Finance.

Peter England, RAKBANK CEO, said: “We are delighted to have partnered with Reem Finance to support their general expansion plan in commercial lending. This facility allows us to diversify our asset book into Non-Bank Financial Institutions (NBFIs) in the region.”
 
Commenting on the signing, Howard Kitson, Reem Finance CEO, said: “We are extremely pleased to sign up on this partnership with RAKBANK as this is the second medium term financial agreement for us in the UAE. This agreement reflects strong investor confidence in the company’s operations and future growth potential and confirms the positive market sentiment as the company enters a new era of business development and is geared to become a market leader under the directive of the new board and the new executive team.” 
 

(Caption - From left to right: Peter England – RAKBANK CEO, Mustafa Kheriba – Reem Finance Board Member, Rajan Khetarpal – RAKBANK Board Member, Howard Kitson – Reem Finance CEO)

05/09/2017

RAKBANK recently hosted the ‘Happiness Without Borders’ workshop at its headquarters in Dubai Silicon Oasis, which brought together Chief Happiness and Positivity Ministers from various governmental entities. This was an important milestone as it follows the general trajectory of the UAE in its move towards achieving happiness in all areas of society. The Ministers shared with participants their experience and best practices that they garnered from attending training sessions organized by the National Happiness and Positivity Programme. The programme aims to provide institutions with the capabilities to establish positive environments that ensure employee happiness and customer satisfaction.

RAKBANK’s top management attended the workshop and discussed with the Happiness Representatives about evolving the Bank’s corporate culture in ways that make it friendlier to both the employees and customers alike. Participants shared their views on creating a sustainable culture of happiness and identified concepts that may be implemented to that end. Furthermore, they discussed ideas on keeping staff regularly updated on the changes and enhancements made. 

Commenting on the ‘Happiness Without Boarders’ workshop, RAKBANK CEO, Peter England, said: “We are very excited that RAKBANK was chosen to be the first Private Institution to hold a 'Happiness Without Borders' workshop in the UAE. Now we have the initiative that is driving happiness on a national platform and I think it is a wonderful opportunity to come together and make sure that we take a great concept such as happiness, figure out how to institutionalize it, make it sustainable, and get all the people in the eco system a whole lot happier.

08/08/2017

RAKBANK announced that it has mandated Bank ABC (Arab Banking Corporation (B.S.C.)), First Abu Dhabi Bank PJSC (FAB), and Standard Chartered Bank as the Initial Mandated Lead Arrangers and Bookrunners to arrange on its behalf a debut US$ 250 million 3-year syndicated term loan facility (the “Facility”). The Facility will be used by RAKBANK for general corporate purposes. Syndication was launched today and is expected to close by mid-September 2017.

In line with RAKBANK’s strategic plan to diversify its product offering to better serve the needs of the customers and enhance shareholder value, the Bank has increased its focus on Treasury, Corporate, and Institutional Business.

RAKBANK is rated Baa1 (stable) by Moody’s and BBB+ (stable) by Fitch Ratings.