What's the buzz! Keep up with the latest news from RAKBANK.

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. 

04/04/2018

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

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

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

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

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

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

01/04/2018

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

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

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

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

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

15/03/2018

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

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

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

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

05/03/2018

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

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

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

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

18/02/2018

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

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

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

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

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

30/01/2018

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

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

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

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

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

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

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

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

21/01/2018

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

28/11/2017

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

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