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16/09/2019

RAKBANK SME customers will now be able to create an online store, accept online payments, manage invoices and prevent fraud, via RAKBANK’s SME payment solution which is powered by Mastercard

16 September, Dubai, UAE – The National Bank of Ras Al Khaimah (RAKBANK) today announced its partnership with Mastercard, a technology leader in the global payments industry, to make online payments for Small Medium Enterprises (SMEs) safe, simple and smart. The partnership is a push towards driving e-commerce growth for SMEs, positively impacting their long-term sustainability through technological innovation. 

The RAKBANK solution, which is powered by Mastercard’s Simplify Commerce, enables RAKBANK SME customers to create their own online store, accept digital payments, manage invoices and minimize fraud via a single portal. The technology will enable merchants to reach more consumers, including those from international markets as well as promote products via social media. The portal is underpinned by the reach, security and reliability of Mastercard’s industry leading technology and network.

Commenting on the partnership, Frederic de Melker, Managing Director of Personal Banking at RAKBANK added: “The Simplify Commerce tool is in line with RAKBANK’s goal of providing our customers the digital support required to run an effective business in today’s digitally driven world. RAKBANK is a market leader in the digital transformation of banking services. From digital wallets and contactless payments to instant remittances; innovation is aligned with our strategy for diversification.”

Girish Nanda, Country Manager – UAE & Oman, Mastercard said: “Tech-savvy consumers in the UAE and across the region are increasingly relying on their smartphones and connected devices to make purchases. Going digital is thus not just good for young businesses, but is a necessity. As a strategic partner to the country’s business and financial institutions, Mastercard is well-positioned to unlock economic opportunities for small businesses by leveraging digital payments to grow revenue streams through an intuitive and user-friendly solution. The Simplify Commerce tool is a seamless and innovative tool that will drive SME growth, and further transition the UAE towards transforming into a cashless society.”

Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK said “As the leading SME Bank in the country, the agreement with Mastercard offers our business banking customers the online support system needed to run their business as efficiently and effectively as possible. The Simplify Commerce tool saves our business customers two material features that business owners value the most – time and money.”

According to the UAE SME Council, the sector is expected to contribute over 50% to the country’s GDP in 2019. With strong growth prospects ahead, Mastercard is committed to unlocking the economic potential of SMEs in the UAE and across the region, with a series of strategic initiatives that add real value to their financial growth and sustainability, ultimately enabling the shift towards a world beyond cash. 

11/09/2019

Under the patronage of HE Engineer Sheikh Salem Al Qassimi, board member of RAKBANK and Chairman of the RAK Department of Civil Aviation, RAKBANK was honored to invite officials from the Criminal Investigation Department (CID) and the Raffa Police station to accept awards and recognition for their endless support and vital assistance to the Bank for combating fraud, money laundering and cybercrimes. This appreciation ceremony was hosted at the Bank’s headquarters in Dubai Silicon Oasis. 

Peter England, RAKBANK CEO, said: “The support that CID and the Raffa Police station offered this year, and throughout the years too, has been vital in helping RAKBANK combat fraud, money laundering and cybercrimes. Security and Compliance is part of RAKBANK’s framework, and this was achieved with the help of our support system that was readily available to us from the Banking Sector teams at CID and Police stations across the UAE, we are extremely grateful for your help and constant support.”

Ceremony attendees: HE Engineer Sheikh Salem Al Qassimi, board member of RAKBANK, RAKBANK CEO, Peter England, CRO, KS Ramakrishnan, Head of Fraud Investigations, Amit Singh and the Chief HR Officer Ahmed Yousef. Including Brigadier Ahmed Thani Ali Ben Ghalidhah and members of the Raffa Police Station, the Criminal Investigation Department, as well as the Head of the Banking Section of the Criminal Investigation Department, Ali Abdul Karim Mohamed along with his Unit’s representatives from the Banking section of CID.

27/08/2019

• The MOU will offer RAKBANK Business Banking customers and SMEs Business Information, Risk and Compliance solutions at preferential terms

The National Bank of Ras Al Khaimah (RAKBANK) has entered into a Memorandum of Understanding (MoU) with CRIF GULF DWC LLC (Dun & Bradstreet), one of UAE's leaders in business information services, data analytics, risk, and compliance solutions. 
 
The MoU will enable RAKBANK's Business Banking unit to offer its customers specialized services relating to risk, compliance, business information, analytics, and accumulate reports at preferential terms through this partnership. Customers will have access to great discounts on the aforementioned services to facilitate their business, making it more efficient, effective, and secure.
 
Commenting on the partnership Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said:
 
Our continuous focus on innovation means Business Banking customers will benefit from the digital facilities that serve to protect and support customers’ businesses through RAKBANK’s valuable partnership with CRIF GULF DWC LLC (Dun & Bradstreet). Not only does this partnership offer risk and compliance services at competitive and discounted rates, but it also provides business information, analytics and reporting to support these businesses in making calculated decisions based on data that has been compiled through the platform provided by our partners. As a Bank, we constantly focus on developing services and solutions for our business customers that revolve around supporting them in more ways than just financially.”
 
Manjeet Singh Chhabra, the Managing Director of CRIF GULF DWC LLC (Dun & Bradstreet), said:
 
"We are happy to join forces with RAKBANK to serve a specific need of SMEs in the region. This partnership makes CRIF D&B solutions seamlessly available to RAKBANK's customers, making them improve performance and competitiveness through better use of data and insights." 
 
The MoU was signed by K.S. Ramakrishnan, Chief Risk Officer of RAKBANK; Dhiraj Kunwar, Managing Director of Business Banking; Kunal Roy, Head of Products and Proposition for Business Banking at RAKBANK; Manjeet Singh Chhabra, Managing Director of CRIF GULF DWC LLC (Dun & Bradstreet) along with the Senior management of CRIF GULF Dun & Bradstreet.

04/08/2019

• The MOU will offer RAKBANK Business Banking customers property management and portal services on preferential terms

The National Bank of Ras Al Khaimah (RAKBANK) has entered into a Memorandum of Understanding (MoU) with City Properties Real Estate (CPRE), one of UAE's leading leasing and property management service providers for residential, commercial and industrial real estate. 

The MoU will enable RAKBANK’s Business Banking unit to refer specialized services to its real estate customers, on preferential terms through this partnership. Customers will have access to discounts on property management fees, legal services, online monitoring, and utilities payment modules.

The MoU was signed by Geoff Stecyk, COO of RAKBANK; Dhiraj Kunwar, Managing Director of Business Banking; and Kunal Roy, Senior Manager of Business Banking at RAKBANK; Dr. Abdulla Al Shaibani, CEO of CPRE, in the presence of Dr. Najib Fadhlani and Senior CPRE Management.

Commenting on the partnership Geoff Stecyk, Chief Operating Officer of RAKBANK, said:
“This is a valuable addition to the diverse range of products and services that are offered by RAKBANK Business Banking. Both RAKBANK and CPRE are committed to addressing property owners’ challenges by providing innovative solutions that will reduce costs and improve operating efficiencies. As a Bank, we strive to continually introduce new platforms that will assist our customers not just financially, but in direct support of their business objectives. This latest partnership is fully aligned with that philosophy.”

Dr. Abdulla Al Shaibani, CEO of CPRE, said: “Since 2003, City Properties Real Estate has been a key influencer on the Emirati real estate market, delivering clients to safety when things were tough, and maximizing clients’ benefit when economy was booming. The result was an exquisite reputation backed up by more than 16 years of experience in navigating the domain of real estate management and property evaluation all over the GCC region and several parts of the world.”

City Properties is mostly distinguished by its evolutionary approach that incorporates IT & software solutions to create pioneering websites and applications that enable our partners of owners, tenants and investors to keep a better track of properties.

As part of this partnership, City Properties is the first company in the UAE that provides e-services with unique privileges in property management to RAKBANK and its clients.

22/07/2019

• 6-month Net Profit of AED 554.9 million increased by 28.5% year-on-year
• Total Income increased by 7% year-on-year
• Total Assets increased by 12.1% year-on-year and by 8.7% year-to-date

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

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

Performance highlights: H1 2019

• 6-month Net Profit of AED 554.9 million increased by 28.5% year-on-year
• Total Income up 7% compared to H1 2018 
• Gross Loans & Advances increased by 0.4% year-on-year; up 1.4% year-to-date
• Total Deposits at AED 38.9 billion, up by 13.9% year-to-date
• Return on Assets at 2.1% and Return on Average Equity at 15.6% (annualized)

Performance review

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

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

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

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

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

Financial highlights

Income statement highlights

07/07/2019

Shahad Ibrahim Hasan Alhosani, a seven-year-old Emirati girl who has a passion for football and an admiration for the football legend Lionel Messi, has won the opportunity of a lifetime. The Priceless Experience was made possible for her through a competition for applicants of Mastercard Credit Card from RAKBANK. The competition was hosted on RAKBANK’s Social Media platforms. 

Shahad won the grand prize - a Priceless Experience to the UEFA Champions League quarter-final between FC Barcelona and Manchester United, where she became the first Emirati girl mascot ever to walk with the legend Lionel Messi. Mastercard is the official sponsor of UEFA Champions League. 
Shahad’s mother entered her into the RAKBANK Social Media competition where she shared a short video clip of Shahad celebrating her goal scoring moment. As part of the experience, Shahad walked alongside the FC Barcelona team at Camp Nou stadium in Spain, one of the most iconic football stadiums in the world. 

A huge fan of the FC Barcelona superstar, Shahad was the first young Emirati girl ever to win such a spectacular prize, and was star struck upon meeting her idol. Adding further excitement for her, Messi went on to score two magnificent goals and led his team to a 3-0 victory. 

“I never thought I would ever be able to meet Messi in my life. He’s the best footballer in the world and I could not be happier to be able to meet my hero. I want to thank Mastercard and RAKBANK for making this happen. This is the best gift I’ve ever received and I will always remember it,” said Shahad Ibrahim Hasan Alhosani on her experience.  

Working closely together, RAKBANK and Mastercard have always shared a dedication to innovation, and this unique competition offers RAKBANK Mastercard Credit Cardholders the opportunity to create such priceless moments
 

02/07/2019

• Bank is among the first in the region to provide access to all digital wallets – including Google PayTM, Fitbit Pay, Garmin Pay, Samsung Pay and Apple Pay
   
• RAKBANK is the only bank in the UAE to offer cash withdrawals using digital wallets at contactless ATMs 

The National Bank of Ras Al Khaimah (RAKBANK) has worked with Google PayTM, Fitbit Pay and Garmin Pay, in addition to existing partners Samsung Pay and Apple Pay, to give customers better access to digital payment solutions. 

RAKBANK Debit, Credit and Prepaid Cardholders can now add their card details on their smartphone and smartwatch to enjoy instant access to contactless payments at point of sale terminals and cash withdrawals at contactless-enabled RAKBANK ATMs without the need of carrying the physical Card.

Peter England, Chief Executive Officer at RAKBANK, commented: 
“RAKBANK is committed to the early adoption of new technologies to bring considerable benefits to our customers. The high penetration rate of smartphones in the UAE has driven the desire for convenient, integrated payment systems. As traditional spending habits evolve in an increasingly digitized world it is important to invest in and grow in parallel with our customers’ needs. In this regard, we are very pleased to be working with Google Pay, Fitbit Pay and Garmin Pay, to provide safe and seamless digital payments options for our Cardholders.”

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, commented: 
“The advances in technology are making big strides and happening at an extremely fast pace. Today’s retail customers decide not only when and where, but how they pay for their purchases. RAKBANK’s expansion of its digital wallets and payment offering is simply one aspect of a broader strategy that is based on the foundation of a solid digital payment framework, which aims to offer cardholders and customers alike the facility to easily pay and transact in a seamless, secure and frictionless way. The new digital wallet solutions will empower our customers and potential customers to manage their banking transactions and needs in just a simple tap of their smartphone or smartwatch.”

Google Pay is a fast and secure payment method accepted by millions of merchants across the world. RAKBANK Cardholders can now add their card to their Google Pay wallet on their Android phones, tablets or watches, enabling them to make tap-to-pay purchases. 

Fitbit Pay brings digital payments to RAKBANK Cardholders from their smartwatch or tracker. Customers can easily add their credit or debit card to their Fitbit app, and use their device to make payments on the go, directly from their wrist, without using their mobile phone or wallet. Making payments in stores that accept contactless payments is done by pressing and holding the left side button until the debit or credit card is seen on the Fitbit device screen and hold the watch against the payment terminal until a confirmation of the payment appears. The Fitbit Pay system is available on Fitbit Ionic, Fitbit Versa and Versa Special Edition smartwatches; as well as on the Fitbit Charge Special Edition tracker.

Garmin Pay is a contactless payment system that facilitates transactions with a few quick touches. Garmin Pay is easily accessible to RAKBANK Cardholders through compatible Garmin watches. Cardholders simply enter their passcode, select the right card from the virtual wallet, and then hold their wrist near the card reader for quick and easy payments and cash withdrawals at RAKBANK ATMs.

30/06/2019

RAKBANK has signed a 5-year exclusive agreement with RAK Insurance for a Group Credit Protection programme designed to provide financial protection to their borrowers and credit card holders in an event such as a death or disability. This agreement is backed by Munich Re, one of the world’s leading reinsurers.

This is a ground-breaking solution due to its multi-year term; the bespoke offering for RAKBANK combines RAK Insurance’s local knowledge and insurance expertise with Munich Re’s capabilities in customising high-quality, tailored solutions for risk management. 

This programme will enable a consistent client insurance offering across the bank, underpinned by efficient and effective turnaround of underwriting and claims services through local presence of Munich Re. 

Peter England, RAKBANK CEO, commented: “This collaboration is supporting the growth in our Personal Banking unit, improving our diversification efforts and leveraging RAK Insurance’s local and Munich Re’s international expertise. The Bank is delighted to sign this five-year agreement, offering customers a number of services as part of the credit protection programme.”

RAKBANK’s agreement with RAK Insurance is in line with the Bank’s strategy to diversify its income and provide best-in-class services to customers. The Bank’s current strategy is heavily focused on diversification and customer centricity, which includes growth in Bancassurance services. 
 
Frank Mayer, CEO of Munich Re Underwriting Agents, DIFC, commented: “This innovative group credit solution will provide RAKBANK’s retail banking clients with insurance protection over the next five years, and will enable Munich Re to explore new and innovative product development opportunities jointly with RAKBANK and RAK Insurance.” 

Ewen McRobbie, RAK Insurance CEO, commented: “RAK Insurance is delighted to sign this five-year agreement with RAKBANK and Munich Re.  It underpins our intention as a member of RAKBANK Group to work jointly towards providing quality services that benefit RAKBANK customers”.

RAKBANK recently announced consolidated Net Profit of AED 270.2 million for Q1 2019, a year-on-year increase of 31.7%. Total Income of AED 1.0 billion increased by 8.5% from 2018, with Total Assets of AED 53.5 billion increasing by 9% year-on-year. Recent strong financial results have been driven by the Bank’s diversification strategy, which commenced in 2015 and has included expansion into new business lines and products.

25/06/2019

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

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

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

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

24/04/2019

• Net Profit increased by 31.7% compared to Q1 2018
• Total Income increased by 8.5% year-on-year
• Total Assets increased by 9% compared to Q1 2018

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

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

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

Q1 2019 highlights 

• Net Profit increased by 31.7% year-on-year
• Total Income increased by 8.5% year-on-year
• Total Assets increased by 9% year-on-year
• Improved asset quality resulted in a decline in provisions 
• Annualized Return on Assets stood at 2.1% and Return on Equity at 15.1%

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

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

Asset growth

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

Asset quality and impairments

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

Q2 2019 outlook

England concluded:

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

Financial highlights

Income statement highlights

22/04/2019

• RAKBANK shall power all payment transactions for the Coca-Cola Arena 
• Strategic partnership will give RAKBANK customers access to the Bank’s Premier Club, RAKBANK Suite and hospitality tickets 

RAKBANK and Coca-Cola Arena announced a five-year partnership today to facilitate seamless transactions for the arena visitors. The agreement solidifies RAKBANK’s role as a Founding Partner and an Official Retail Bank of Coca-Cola Arena. Through the partnership RAKBANK will provide innovative solutions to eager show attendees and offer eligible customers access to the Bank’s premier club, which will be known as the RAKBANK Premier Club and the RAKBANK Suite at the arena.

As the exclusive retail bank of the arena, RAKBANK will provide fully integrated and customer facing card acquiring services as visitors will enjoy faster, convenient & secure transaction experiences while buying tickets, shopping for fan merchandise, paying for their food and beverages and for any card and digital payment for other similar services. The Bank will also promote the region’s biggest indoor multipurpose arena as the key entertainment hub in Dubai to all its valued customers, facilitating access to best-in-class entertainment.

Peter England, RAKBANK CEO, said: “The collaboration with Coca-Cola Arena is a significant milestone for RAKBANK and its Personal Banking division. During the next five years we will deliver innovative payment integration across channels for a significant number of residents and visitors, in line with continuous innovation across our business. This partnership recognises our focus on digitizing our offering and providing best-in-class services for customers in the UAE. We look forward to embarking on this significant journey.”

Guy Ngata, AEG Ogden’s CEO of Coca-Cola Arena, said: “We are delighted to be partnering with RAKBANK as our Retail Banking Founding Partner. Aligning with visionary partners who see the customer journey and interaction as a core focus is paramount. The next five years will see RAKBANK enjoy a host of unique opportunities along with Coca-Cola Arena fans and visitors benefiting from RAKBANK’s vast experience and focus on innovation.”

Frederic de Melker, Managing Director of Personal Banking at RAKBANK added: “Our continuous focus on innovation means Coca-Cola Arena visitors will benefit from the digital and seamless payment gateway we have on hand. We offer an efficient and secure digital payment portal for any card along with a fully integrated customer facing card acquiring service that enables visitors to purchase tickets for all the shows in just a few clicks, save time queuing at the concession stands or shop effectively for their favourite merchandise at the Arena. Lastly, eligible customers will enjoy the venue facilitating access to best-in-class entertainment through our RAKBANK Premier Club, RAKBANK Suite and hospitality tickets throughout the year.” 

Coca-Cola Arena, the region’s biggest indoor multipurpose arena, will have a capacity of 17,000 spectators. The arena, owned by Meraas, will be capable of hosting large scale live events 365 days and is set to open in June 2019.

10/04/2019

• Launch of Mini-Gold product a result of MoU signed with RAKBANK to develop bullion products

The Dubai Gold & Commodities Exchange (DGCX) in partnership with RAKBANK, today announced plans to launch a Mini-Gold Futures product, offering investors the chance to trade gold in smaller denominations. The contract will be the first-of-its-kind, and is in response to feedback from market participants that emphasized a strong desire from smaller investors to increase their exposure in the precious metals market.

The Mini-Gold product will be made available on the DGCX platform and cleared by the Dubai Commodities Clearing Corporation (DCCC). Initially, delivery will take the form of electronic transfer at RAKBANK, although as the contract develops it is envisaged that the additional capability of physical redemption will be added. The launch of the Mini-Gold contract is targeted for Q3 subject to the appropriate approvals.

Les Male, CEO of DGCX, said: “The DGCX’s decision to expand its precious metals portfolio is a direct result of the partnership we forged with RAKBANK in 2017. We are delighted to have built on this relationship, and excited to announce the launch of the MENA’s first exchange listed Mini-Gold product together. There is a strong desire to own gold in the UAE, but at present, it is difficult for smaller investors to buy Gold Futures given the large size of the contracts. This significant move will open up access for them and permit accumulation of Gold as part of their savings, while ultimately contributing to the development of the region’s bullion market.”

Vikas Suri, Managing Director of Treasury at RAKBANK, said: “We were very pleased to join hands with the DGCX and DMCC two years ago to start work on the development of a platform that would allow customers, large and small, from across the region to acquire gold at competitive prices with just a click of a button through an integrated Digital Banking platform. I am delighted to note that this vision has now become a reality and that the end product of a significant amount of hard work, commitment and determination from all sides has culminated in the agreement to launch the DGCX Mini-Gold product. This is part of our exciting RAKGOLD project to create the UAE’s first full service, end to end bullion banking offering and we look forward to supporting the new contract as both a market maker and gold clearer.”

08/04/2019

• RAKBANK offers Business Banking customers tailored VAT and accounting services in partnership with MI CAPITAL, an affiliate of Kreston Menon, a leading Audit and Business Advisory firm in the region.
• The partnership supports business owners by facilitating Accounting processes, including VAT compliance

The National Bank of Ras Al Khaimah (RAKBANK) has partnered with MI CAPITAL, a leading corporate finance and business advisory firm. The partnership will bring specialized services to RAKBANK Business Banking customers through a dedicated channel. Customers will have access to VAT and accounting advisory, VAT compliance tools, in-house accounting and remote accounting services.

Commenting on the partnership Mahadevan Radhakanthan, Chief Credit Officer at RAKBANK, said:

“Following the introduction of VAT last year, we recognized a need to support our Business Banking customers in navigating the intricacies of the tax system and other accounting challenges. This partnership with MI Capital will provide our customers access to several value-added services on preferential terms, including compliance, advisory and accounting support. Our business customers will now benefit from hands-on support and convenient, secure and simple VAT, compliance and accounting tools – in line with our strategic aim for delivering a more complete set of financial services.”

Khalid Abdulla Janahi, Senior BOD member of MI CAPITAL Group said: 

“UAE Economy is going through several structural reforms in recent times and that has impacted SME sector. It is wonderful initiative on part of RAKBANK for its business customers and creating further awareness on Tax, Accounting, International Financial Reporting Standards (IFRS), Compliance and Regulatory Matters".

The partnership agreement was signed by Mahadevan Radhakanthan, Chief Credit Officer; Dhiraj Kunwar, Managing Director of Business Banking; and Kunal Roy, Senior Manager of Business Banking at RAKBANK; with Senior Board Members of MI CAPITAL, Mr. Khalid Abdulla Janahi and Ala Khannak; and MI Capital CEO, Sheetal Soni.

04/04/2019

The National Bank of Ras Al Khaimah P.S.C. (“RAKBANK”), rated Baa1 by Moody's and BBB+ by Fitch (both with stable outlook), successfully priced a 5-year USD 500 million bond issuance. The bond will pay an annual coupon of 4.125%, equivalent to 185 bps over 5-year USD Mid Swaps. 
 
The success of the transaction came on the back of a focused marketing strategy aimed at reintroducing RAKBANK’s credit story to international investors and included a roadshow covering Hong Kong, Singapore and London.
 
The strong investor demand received for the issuance, as evidenced by an order-book of around USD 2.0 billion, representing an oversubscription of around 4 times, allowed RAKBANK to price at 185 bps over USD Mid-Swaps, which was 25 bps inside the initial price guidance of 210 bps over USD Mid-Swaps. 
 
RAKBANK Chief Executive Officer, Peter England, said: “Our return to the bond market is in line with our funding diversification efforts and we have been pleased to see robust interest from international Fixed Income investors. This bond issuance will support our long-term funding requirements, which in turn supports our digitization and diversification strategy, at the heart of our 2020 Strategic Plan. Funding allows us to continue to harness new technology and deliver a best-in-class service across business units, while maintaining our efforts to grow the Bank as a customer-centric organization with an industry-leading digital offering.”
 
The issuance, in line with RAKBANK’s growth strategy, will enable the Bank to diversify its sources of financing, raise longer maturity capital, repay maturing debt, and will directly support its diversification program. During 2018, RAKBANK’s Treasury unit was successful in diversifying its funding options by increased interaction with financial institutions across the region, resulting in a higher number of liquidity providers and more effective use of the inter-bank market.
 
Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank acted as Joint Lead Managers and book-runners.

25/03/2019

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

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

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

20/03/2019

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

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

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

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

12/02/2019

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

31/01/2019

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

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

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

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

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

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

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

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

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

10/12/2018

The RAK Department of Finance along with the Electronic Government Authority (EGA) announced the extension of their partnership with RAKBANK as exclusive acquiring bank and STS PayOne as a leading regional provider of ePayment solutions, to launch RAK SmartPay as an integrated e-payment system in Ras Al Khaimah. This was announced during a press conference held today at the Waldorf Astoria Hotel in Ras Al Khaimah.

Aiming to enhance the sustainable development in Ras Al Khaimah, the partnership also marks the realisation of RAK Government’s strategic goals and its Vision 2030. This will assist in achieving a clear objective for the Finance Department to adopt an innovative smart platform, which is based on electronic and smart techniques, to manage public funds. 

The implementation of the project, which was based on STS PayOne's SmartGate, will help to unify RAK government’s revenue collection procedures instead of multiple payment systems that are burdensome to employees and customers.  RAK SmartPay is a unified central payment platform that enhances accessibility to e-government services by providing several payment methods including credit and debit cards as well as digital wallets.

H.E. Yousef Ali Mohammed, General Manager of RAK Department of Finance, said: “This strategic project is part of our ongoing commitment to implement the best innovative smart solutions to meet the needs of beneficiaries and boost partnership and cooperation efforts.”

“The project will serve as a main driver for advancing the financial performance of RAK Government in line with international best practices and standards, while taking into consideration the global competitiveness standards and keeping pace with the digital and smart transformation developments across different government services regionally and internationally,” he added. 

Eng. Ahmed bin Saeed Al Sayah, General Manager of the eGovernment Authority in Ras Al Khaimah, said: “This strategic partnership with the Department of Finance, the main partner of this project, RAKBANK and STS PayOne, is in line with the vision of the Authority to lead the way in offering smart services and integrated e-government solutions to improve the quality of life and the competitiveness of the smart transformation process in the Emirate. Our aim is to utilize the world-class technology that is currently being used in the digital payment space to provide the safest methods to ensure customer protection through the implementation of the global standards and offer a safe revenue for the government as well as reducing the revenue collection costs.”

Peter England, CEO of RAKBANK, said: “RAKBANK is currently working to bolster cooperation with all government departments and entities in Ras Al Khaimah, especially the Department of Finance, with the goal of promoting convenient and secure e-payment solutions to simplify payment procedures for citizens and residents in our home Emirate. RAK SmartPay will be a significant stride in Ras Al Khaimah's financial and digital development that will contribute to achieving the emirate's sustainable economic development goals.”

Janti Abdallah, General Manager of STS PayOne, stated that SmartGate enables decision makers to monitor and improve revenue collection and forecasting. “We are delighted to enter into this strategic partnership with RAK Government’s Finance Department and EGA, which further reinforces our position as a leading regional provider of e-payment solutions. We are confident that this partnership will lead to many positive results in the future,” he said. 
 

02/12/2018

RAKBANK celebrated the 47th UAE National Day by organizing a special ceremony in its Ras Al Khaimah headquarters and across all 38 branches. Senior management and staff, from different nationalities and backgrounds, all gathered to commemorate the 47th National Day, as well as celebrate the UAE’s culture and heritage. 

The ceremony began with the UAE national anthem, and then a group of Emirati youth stood alongside one another for the traditional Emirati dance that was performed by Al Harbiya band to commemorate the nation’s spirit of the union. Lastly, a group of Emirati students from a local school based in Ras Al Khaimah prepared an endearing performance to celebrate the 47th National Day, which then later ended in the performance of a traditional Emirati wedding scene.