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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.

14/11/2018

RAKBANK’s partnership with the Spanish football club, FC Barcelona, has scored a goal for all the football club’s fans in the UAE through the recent announcement of an exclusive Platinum Mastercard affinity Credit Card.
 
In line with FC Barcelona football club, RAKBANK and Mastercard’s shared dedication to innovation, this partnership will pave the way for people residing in the UAE to access a plethora of benefits and rewards. The unique RAKBarçaRewards offer Cardholders various options to redeem against Barça Merchandise, RAKrewards offers on flights, hotels, shopping and more. Barça fans will also get opportunities to travel to Camp Nou, Barcelona to watch their favorite players live in action and enjoy the Camp Nou experience.

RAKBANK has also tied up with various cafés and sports lounges in the UAE where Cardholders can watch FC Barcelona matches while taking advantage of ‘Buy One Get One’ offers and up to 50% discounts on dining. Additionally, the Card comes packed with complimentary airport pick-up and drop-off services, discounts on holiday packages, special offers on football coaching, and a wide range of Mastercard Platinum shopping and travel benefits.

Frederic de Melker, RAKBANK’s Managing Director of Personal Banking commented: “The recently launched RAKBANK FC Barcelona Platinum Mastercard Credit Card aims to provide dedicated Barça fans here in the UAE access to unique rewards, exclusive discounts, and experiences. This affinity Credit Card will be the top choice for the avid Barça fans and is easily accessible to eligible UAE residents who may apply for the Card via our Bank’s website in just a few clicks”.

“The five-year strategic partnership that RAKBANK signed with FC Barcelona further fuels the Bank’s diversification strategy. This will help us develop and tap into new areas within our Personal Banking segment by giving customers access to their favourite football club through the RAKBANK FC Barcelona Platinum Mastercard Credit Card.” said Peter England, CEO RAKBANK.

Oriol Tomàs, FC Barcelona’s Board Member, said: “FC Barcelona and RAKBANK share the same vision of the business and sports world. This is the kind of association that we seek to forge with our partners. Companies like RAKBANK, with which we share values and characteristics, to share goals and challenges that will help us to grow as brands.”

Girish Nanda, General Manager, UAE and Oman, Mastercard, said: “We are proud to partner with RAKBANK for the launch of their new FC Barcelona Platinum Mastercard Credit Card. Many UAE consumers are passionate football fans, and by enabling them to demonstrate support for their team, we are enhancing their banking experience while also connecting them with their passion. The innovative technology associated with our cards offer the highest levels of security, convenience, and brings fans of the club the opportunity to start something priceless with a range of exclusive travel and lifestyle benefits.”

01/11/2018

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.

24/10/2018

The Mohammed Bin Rashid Fund (MBRF) of Dubai SME, the agency of the Department of Economic Development (DED) in Dubai mandated to develop the small and medium enterprise (SME) sector, has signed a memorandum of understanding (MoU) with RAKBANK to facilitate SME access to competitive financing solutions. The MoU will allow Dubai SME members to secure financing at preferential rates and also take advantage of RAKBANK’s suite of Business Banking products and services including a business current account with no minimum balance required or maintenance fees.

The MoU was signed at RAKBANK’s Al Quoz Branch by His Excellency Abdul Basit Al Janahi, CEO of Dubai SME, and Peter England, CEO of RAKBANK, in the presence of key officials from both sides. The CEOs also inaugurated RAKBANK’s first Emirati Business Centre dedicated to cater to Emirati clients, and the third RAKelite Business Banking Centre. These facilities make RAKBANK easily accessible to its business elite customers and offer them a range of products and service.

Al Janahi termed the partnership with RAKBANK as a significant opportunity for Dubai SME members to capitalise on the increasing emphasis on knowledge, innovation and entrepreneurship in Dubai and the UAE.

“An ambitious vision along with varied initiatives to develop a globally competitive infrastructure and service environment has created a wider field in Dubai and across the UAE for SMEs and entrepreneurs to launch their innovations and promote them globally. Dubai SME is committed to creating partnerships with competent businesses and organisations to ensure our SMEs have access to all resources required, including knowledge, human capital and funding to move confidently through each stage of their growth,” added Al Janahi.

By virtue of the MoU, RAKBANK acts as a paying agent on behalf of MBRF to offer Loan Against Invoice (LAI) and Statement of Invoice (SOI) services to members of Dubai SME. MBRF will use RAKBANK's processes, checks and balances to disburse funds to Dubai SME members. 

Commenting on the new agreement with MBRF, Peter England, CEO of RAKBANK, said: “RAKBANK being a key bank for SMEs was chosen to support Mohammed Bin Rashid Fund’s initiatives to help SMEs gain extra access to financing at more accessible rates, and help Dubai government achieve its mandate to fuel the country’s non-oil GDP growth through a more diversified economy. We are pleased to have partnered with MBRF, as the MoU ultimately means enhancing and promoting entrepreneurship initiatives of UAE Nationals by providing financial support and technical expertise to SMEs.” 

“This MoU reaffirms the Bank’s commitment to offer SMEs simple and convenient banking solutions that better suit their needs. The partnership aims to raise the visibility of the UAE National-owned SMEs and to cement the position of RAKBANK being a lead SME banker in the UAE market,” said Dhiraj Kunwar, RAKBANK’s Managing Director of Business Banking.

23/10/2018

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

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

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

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

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

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

09/10/2018

RAKBANK continues to raise awareness about the tax system that was implemented back in January 2018 by inviting its Business Banking customers to attend a comprehensive workshop on Value Added Tax (VAT) at the RAKBANK headquarters in Dubai Silicon Oasis. The objective of this workshop is to create a platform for the Bank’s Business Banking customers to discuss and understand the practical aspects of VAT implementation, VAT features, and filing process, which was followed by a Q&A session. 

The Bank invited speakers from Morison Menon, a global association that offers comprehensive auditing and business solutions, as well as representatives from Sage, the market leader in cloud business management solutions, to give RAKBANK’s customers a complete overview about the VAT’s next phase and what needs to be done from a business perspective. 

Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said: “RAKBANK is delighted to have top representatives from Morison Menon so graciously speak at the VAT workshop. The aim is to offer our Business Banking customers a detailed roadmap about the next phase of the VAT’s functionality and its features. We also invited one of our business partners, Sage, to speak about their VAT compliant Accounting Software, which is a convenient digital solution that supports the businesses’ financial requirements.”

Commenting on the workshop, Sheetal Soni, CEO and Managing Partner of MI CAPITAL, said: “UAE Economy is going through several structural changes in recent times and that has impacted several sectors particularly SME segment in the country. It is wonderful initiative on part of RAKBANK for its client base and creating awareness on such regulatory changes that may impact their business.” 

Ibrahim Parwaz, Strategic Manager at Sage, said: “VAT continues to be a hot topic of interest in the UAE as businesses endeavor to comply with local tax regulations. We would like to thank the Business Banking team at RAKBANK for inviting us to the workshop. With Sage Accounting, a cloud-based FTA approved accounting solution, we enable businesses to be tax compliant whilst empowering them to focus on what matters most to them - their customers and growing their businesses. With a cloud-based solution they can run their accounting anywhere at any time.”

01/10/2018

In line with RAKBANK’s strategy to strengthen its cross border payment solutions, the Bank signed an agreement with Sri Lanka’s Cargills Bank. Further leveraging the partnership with Ripple, RAKBANK’s RAKMoneyTransfer (RMT) services enables customers to make instant, frictionless, and secure money transfer services to Sri Lanka’s Cargills Bank via blockchain using Ripple platform. 

Furthermore, the Bank’s customers have the flexibility to use their RAKBANK credit cards to remit money at competitive rates, with no hidden fees and a 55-day interest-free credit period. In addition, the live retail remittance payments from RAKBANK to Cargills Bank and other banks in Sri Lanka reach their destination account instantly with end-to-end visibility over the journey of the payment.

Peter England, RAKBANK CEO, said: “We, at RAKBANK, constantly focus on aligning our offerings through strategic partnerships to increase our remittance footprint on a global scale by optimizing the Ripple platform and network that we have at hand. The Bank is delighted to have partnered with Cargills Bank to extend its RMT services into Sri Lanka with the aim of offering the Sri Lankan expat community here in the UAE the ability to safely and instantly remit money back home.” 

Rajendra Theagarajah, Managing Director/CEO of Cargills Bank Limited, said: “We are delighted to partner with RippleNet and RAKBANK as a part of our drive to strengthen bank's remittance service. Our goal is to make life easy for beneficiaries by having a 370+ Cargills Food City supermarket network to access their account or for cash pick-up. We are confident that this partnership would add value to Sri Lankan citizens across the globe.”

Navin Gupta, Managing Director, South Asia and MENA at Ripple, said: “As members of RippleNet, RAKBANK and Cargills Bank understand the need for quicker, more efficient payments. Now, Sri Lankan expats in UAE can get money back to their families and friends in a way they never could before. This is the next generation of payments, and we are happy to have a network full of forward thinking institutions like RAKBANK and Cargills Bank.”

19/09/2018

RAKBANK is pleased to announce its recent partnership with the Finance Department (Government of Ras Al Khaimah) to facilitate their requirements on cash management and payment gateway solutions. 

Key representatives from both the Finance Department of the RAK Government and RAKBANK attended the signing ceremony, which was held on 19th September 2018 at the Bank’s Operations Centre Building in Ras Al Khaimah. H.E. Yousef Ali Mohammed, General Manager of the RAK Government – Finance Department, and Peter England, RAKBANK’s CEO, signed the agreement. 

Commenting on the signed agreement, RAKBANK’s CEO, Peter England said: “We are delighted to offer the Government of RAK – Finance Department convenient, secure, and simple payment solutions through all the different touch points and through an effective cash management solution. These solutions will transform their payments and receivable collections from paper to an electronic and seamless platform, which will in turn further enhance and streamline the payments and collections process related to all their services. The partnership is in line with the Bank’s commitment to enhance its offering to the public and increase the diversity of the services and products offered. Additionally, the platform allows for liquidity management capability and a treasury single account solution that comes with a host-to-host payment processing option.”

25/07/2018

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

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

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

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

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

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

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

18/07/2018

RAKBANK partners with INPAY - a European Fintech remittance service provider – to offer customers the lowest remittance fees in the market when transferring Euros to 25* European nations a charge of 25 UAE dirhams per transfer through RAKMoneyTransfer. Likewise, it allows customers to send money via the digital banking platform and from any one of the Bank’s 38 branches, where the Euro is credited directly to the beneficiary’s bank account on the same day with no hidden corresponding fees or backend charges.  

“RAKBANK is expanding its global presence and the Bank’s remittance footprint into the European corridor through this strategic partnership with INPAY in order to offer customers a seamless banking experience with the new and enhanced remittance services. This will enable our customers to make secure, faster and convenient Euro transfers to 25 European nations,” said Geoff Stecyk, RAKBANK’s COO.

“Currently we are witnessing a shift in the way people are remitting money abroad and for that reason; we enhanced the customer’s money transfer journey with RAKBANK. Customers can now remit money using their RAKBANK account or credit card. At RAKBANK, we believe that we can achieve great value proposition for our customers through strategic collaborations with FinTech’s rather than competing with them,” he added.

INPAY’s Founder & CEO, Jacob Tackmann Thomsen, said: “This partnership with RAKBANK, one of the most digitally advanced banks in the UAE, demonstrates INPAY’s relevant cross-border payments offering to financial institutions globally. We see this as an excellent example of how INPAY as a FinTech company enables its bank clients such as RAKBANK to provide their customers with even better services and do it at a go-to-market speed that was previously impossible.”

* Austria, Denmark, Hungary, Norway, Slovenia, Belgium, Finland, Ireland, Poland, Spain, Bulgaria, France, Italy, Portugal, Sweden, Croatia, Germany, Luxembourg, Romania, Switzerland, Cyprus, Greece, Netherlands, Slovenia, United Kingdom.

10/07/2018

RAKBANK is now the new Official Bank of FC Barcelona in the UAE  

The National Bank of Ras Al Khaimah (RAKBANK) and FC Barcelona have announced a strategic Regional Partnership for 3 years extendable by another 2 years whereby RAKBANK has become the Official Bank of FC Barcelona in the United Arab Emirates. This partnership entails the launch of new FC Barcelona dedicated co-branded products including Mastercard Platinum Credit and Debit Cards. 

The contract was sealed in the presidential box at the Camp Nou and was attended by FC Barcelona’s Chief Executive Officer, Oscar Grau, while Frederic de Melker, Managing Director of Personal Banking, represented RAKBANK at the event.

With this association RAKBANK Barca fans can look forward to access FC Barcelona branded merchandise and opportunities to watch their favourite players at matches in Barcelona amongst other benefits.  

Frederic de Melker, RAKBANK’s Managing Director of Personal Banking commented: “We are delighted to partner with FC Barcelona, one of the world’s leading football clubs, to become their official bank in the country. UAE is a football loving nation of dedicated fans who avidly follow the game. Therefore, we deemed it fit to bring their favourite club closer home by building increased affinity of the segment with the Club and RAKBANK.” 

“We are very pleased with this strategic alliance between RAKBANK and FC Barcelona. The spirit of football is timeless and we aim to deliver unique value propositions through the RAKBANK co-branded Credit, Debit Cards, and other banking products. This also includes the BarcaRewards that are directly pertinent to FC Barca fans here in the UAE, which aims to offer exciting football benefits and privileges.” said Peter England, CEO RAKBANK.

FC Barcelona was founded 118 years ago in 1899, and is unique in many ways. The club is owned by its more than 145,000 members and can boast of being the most successful club in Europe over the last years. Since season 2004/05 they have won four of the Club’s five Champions League titles and nine of their 25 domestic league titles. Such unstoppable growth in recent years has led to a global reach of more than 315 million fans and made FC Barcelona a world leader on social media.

24/06/2018

RAKBANK has partnered with Xpress Money, one of the most dependable money transfer organizations in the world, to offer convenient money transfer services to RAKBANK customers through the Bank’s award-winning remittance service, RAKMoneyTransfer (RMT). The Bank’s money remittance service is available in 5 countries including India, Pakistan, Philippines, Sri Lanka and Nepal. By virtue of this partnership with Xpress Money, RAKBANK has expanded its RMT service to 20 new countries with a total reach of 25 countries* worldwide. It will also allow customers to make hassle-free money transfers with greater convenience and maximum security. 
 
RAKMoneyTransfer service has been specially designed to meet the remittance needs of customers who can conveniently remit money from their RAKBANK Account or Credit Card to the aforementioned countries. In addition, RMT offers another convenient choice of cash pickup options through 85,000 Xpress Money agent locations, out of the 200,000 locations that Xpress Money has globally. RMT also provides customers with highly competitive exchange rates to ensure the most convenient, secure and cost-effective transfer solution that can be completed at just the click of a button using RAKBANK’s Digital Banking platform and through all of the Bank’s branches. 
 
Peter England, RAKBANK CEO, said: “In line with the Bank’s strategy to offer customers a seamless banking experience, we are currently focusing on aligning our offering through strategic partnerships to increase the Bank’s remittance footprint. We are delighted to have partnered with Xpress Money to extend our RMT service into new territories with the objective of offering the expat community in the UAE the ability to immediately remit money back home. Therefore the partnership will enable our customers to make secure, faster and convenient money transfers to 20 countries.” 

Sudhesh Giriyan, COO, Xpress Money, said: “It has been a constant endeavor of Xpress Money to make money transfers easily accessible and affordable to customers globally. Through our global network of partners in 165 countries, we offer convenient money transfer services, with multiple pay-in and pay-out options, suitable to our customers’ needs. This collaboration gives us the opportunity to offer digital solutions through RAKBANK, elevating the level of their customers’ convenience as they can now send money anytime, to 20 new countries. We are happy to have partnered with a brand that is also working towards a similar objective that benefits the end customer.”

19/06/2018

RAKBANK recently worked alongside their partners C3 and Farnek respectively in order to host a financial literacy campaign at both the Dubai and Ras al Khaimah headquarters. The objective of the financial literacy campaign was to highlight to the Farnek blue collar employees, also C3 prepaid cardholders, about the ability to instantly transfer money to select Asian countries* at competitive rates with RAKBANK’s Award winning** RAKMoneyTransfer remittance service by conveniently using the C3 digital mobile application on their Smartphones.   

Farnek is a leading UAE-based facilities management (FM) company that provides cleaning services for the Bank and C3 is RAKBANK’s official Prepaid Card Service Providers. Hosted by C3 at RAKBANK offices, its aim was to educate the Farnek blue collar staff about prudent financial planning and the features of the C3 prepaid payroll cards such as immediate salary transfers, payroll solutions and savings that will help them achieve their financial goals.

Commenting on the campaign, RAKBANK CEO Peter England said: “The financial literacy campaign that was driven by C3 and supported by Farnek is in line with one of RAKBANK’s main CSR pillars of financial inclusion. We are committed to offering a more holistic banking experience by providing an entry into the UAE’s blue collar payroll schemes. The Bank has always been at the forefront of a well-defined segmentation strategy to deliver a diverse selection of products & services.”

“Since 2007, C3 has provided businesses, banks and exchange houses a payroll solution that allows blue collar employees to withdraw money and make physical or online payments. Digital technology and enhanced financial infrastructure have provided the key foundation for financial inclusion of migrant workers in the UAE. Thanks to the launch of the C3 Mobile Application, these workers can benefit from an extended range of digital financial services,” said Marwan Hachem, C3-Edenred’s Managing Director, Africa & Middle East.

Markus Oberlin, Farnek’s CEO, said: “At Farnek, technology and innovation are at the forefront of everything we do for our customers so naturally we want to ensure those brand values are offered to our staff. This partnership with RAKBANK and C3 adds another dimension to staff wellbeing and further underscores our commitment to our people who, through hard work and commitment, drive our business success.”

20/05/2018

RAKBANK has recently announced the introduction of a cognitive chatbot that allows Bank employees to interact with an Artificial Intelligence-powered IBM platform to help them answer questions, find solutions or quickly route pending requests to human advisors. Using AI technology will enhance the employee’s experience when facing technical roadblocks at work. The Bank will begin by making the system accessible to all its employees to answer queries on everything from ‘How do I change my password?’ to ‘How do I update my home address with the bank’? The chatbot will be able to answer these simple questions in just a split second while directing employees to a human to answer questions that are more complex. 

The chatbot service is powered by cloud-based AI technology from IBM based on an agreement between RAKBANK and IBM which was signed in early 2017. With the chatbot being able to find answers from a variety of sources of information instantly, staff are more efficient and productive. Offering a much simpler and faster process to resolve issues internally and find solutions will in turn benefit the customer. The chatbot also uses AI-based tone analyzing capabilities to better understand how an employee is feeling – for example, if they are unhappy or frustrated – and then change its tone and actions accordingly. 

Peter England, RAKBANK CEO, said: “We at RAKBANK believe in leveraging new technologies that constantly enhance the experiences for both employees and in turn customers. By using AI technology to power our chatbot, our employees are able to get answers to their simple queries easily and in real time. Leveraging AI is in line with not only our strategy here at the Bank, but also enables us to enhance our existing market-leading chat service. The second phase of the chatbot service is to introduce it to customers. In the near future, customers will be able to get answers to their simple queries with zero waiting time. RAKBANK will continue to find ways to improve efficiency across the Bank, and engage in strategic partnerships such as IBM that gives the Bank a competitive edge in the market. These are driven by our emphasis on innovation, which we regard as an essential vehicle for reaching future goals”.

13/05/2018

RAKBANK today announced that it has partnered with Air Arabia and Mastercard^®, a leading technology company in the global payments industry, to launch a co-branded Mastercard Platinum Credit Card, which cardholders can use globally for purchases and cash withdrawals. Air Arabia has an innovative loyalty program called Air Rewards that is based on spend rather than miles. Customers subscribing to the new co-branded credit card will immediately earn a joining bonus of 15,000* Air Rewards that will, in time, get them access to free flights and more rewards from Air Arabia. 

Additionally, ‘Air Rewards’ can be accumulated whenever cardholders make a purchase in the UAE or internationally on their co-branded Card, which can be redeemed conveniently all year round in the form of flights, meals and baggage vouchers with Air Arabia. To ensure customer convenience, the Air Arabia co-branded Mastercard Platinum Credit Card also offers a 0% easy payment plan of up to 12 months without a processing fee. Likewise, cardholders will benefit from the complimentary Sharjah Airport drop off and pickup services to and from anywhere in Dubai or Sharjah. 

“Over the years, the Bank managed to transform the concept of card reward programs in the UAE through a host of unique features and now we are extending Air Arabia’s Air Rewards loyalty programme to our cardholders,” said Peter England, RAKBANK CEO. “Staying true to the Bank’s prominent position as an innovative and dynamic player, our partnership with Air Arabia will help us offer Air Rewards to customers with every purchase they make using the Mastercard Platinum co-branded Credit Card.”

Commenting on the co-branded credit card launch, Adel Al Ali, Group Chief Executive Officer of Air Arabia, said: “This new co-branded credit card is a new value added product that we offer to our customers to enjoy superior services and unique benefits across our network. This new card will add tangible value to our frequent travelers’ and offer them attractive opportunities to earn Air Rewards points and redeem it for complimentary flights and other services. At Air Arabia we remain committed to constantly innovate to deliver great value to our customers.”

“In addition to offering the simplicity and convenience of Mastercard’s innovative payment technologies, our co-branded cards provide the consumers with a host of exciting benefits from their favorite lifestyle brands. With every purchase they make with this RAKBANK and Air Arabia Mastercard Platinum card, consumers can look forward to enjoying an array of travel rewards, coupled with a deep sense of trust they have come to associate with Mastercard, thanks to our multi-tiered safety and security features,” said Girish Nanda, General Manager, UAE and Oman, Mastercard.

Air Arabia is the Middle East and North Africa's first and largest Low Cost Carrier (LCC). The carrier fly passengers to over 140 destinations spread across the Middle East, Africa, Asia and Europe. Offering comfort, reliable and value for money air travel across its network; Air Arabia aim is to help passengers fly more often to more places at their own convenience. Moreover, Air Arabia operates from four main hubs - Sharjah International Airport and Ras Al Khaimah International Airport in the UAE, Mohamed V International Airport in Casablanca, Morocco and Borg Al Arab International Airport in Alexandria, Egypt.

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.