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

08/08/2017

The National Bank of Ras Al-Khaimah (RAKBANK) today announced a strategic partnership with Invoice Bazaar, a FinTech Supply Chain Finance platform in the United Arab Emirates. The partnership allows RAKBANK to participate as a ‘Receivable Purchaser’ on Supply Chain Finance transactions originated by Invoice Bazaar on its platform. RAKBANK is the first bank in the Middle East to have partnered with a Fintech Platform for enhancing the bank’s offering to the SME clientele. 

“This partnership is significant to us as we move towards further digitizing our offering to our business clients. This opens up a new channel in SME lending.” said Peter England, CEO of RAKBANK. The bank is also seeking to broaden the partnership by exploring other synergies to bring in efficiency in bank’s invoice discounting portfolio. 

Invoice Bazaar which has an in-house developed Supply Chain Finance platform, connects large buyers with SME suppliers that enables SME suppliers to avail early payment on their receivables. The liquidity towards early payments is provided by “Receivable Purchasers”. Invoice Bazaar has been successful in attracting institutional funds to provide liquidity and RAKBANK is the first bank to partner Invoice Bazaar. Invoice Bazaar, which started a year back boasts of zero losses in its portfolio and business presence in UAE, India and Singapore. 

“We are extremely pleased to have RAKBANK as the 1st partner bank in our endeavour. RAKBANK is one of the most active and innovative banks in the region, and it was no surprise that they moved faster than any other bank to understand the synergies that exist. This association will help us attract global and local corporations to implement Supply Chain Program for their suppliers.” said Anand Nagaraj, Founder & CEO of Invoice Bazaar.

The first transaction under the partnership has already been completed. In the initial phase, five Supply Chain Finance programmes are under implementation. 

Supply Chain Finance is a win-win concept that helps suppliers get paid early on their receivables from a bank/financier and at the same time ensuring the buyer to not reduce their DPO (Days Payable Outstanding). Most large global corporations have implemented Supply Chain Finance programmes and other corporates are slowly learning the benefits of implementing a program. Treasury Managers in public listed companies are quick to implement such programs, as they understand the balance sheet benefit a Supply Chain Finance program can bring.

24/07/2017

The National Bank of Ras Al Khaimah (RAKBANK) Group announced a consolidated net profit of AED 381.5 million for the half year ended 30 June 2017. The second quarter of 2017 generated profit of AED 226.7 million, an increase of 16% year on year and a 46.5% increase compared with the first quarter net profit. Gross Loans & Advances grew by 6.2% to AED 31.6 billion for the half year ended 30 June 2017 with strong growth in Wholesale Banking book and steady growth in the Personal Banking and Business Banking segments.  

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The trends for the 1st half of 2017 are showing continued positive signs where solid progress is made by all business units being Wholesale Banking, Business Banking, Personal Banking, and Treasury. Total Income for the second quarter of 2017 increased by 2.1% over the previous quarter and impairments continue on a downward trend after peaking in Q3 2016. Impairments are still relatively high reflecting the nature of our legacy book, however we expect continued improvements in this area as the year progresses.”

Total Assets increased by 3.4% to AED 44.0 billion compared to the end of 2016. This was due to an increase in Gross Loans & Advances of AED 1.8 billion partially offset by a decrease in investments of AED 497.6 million. The healthy growth of corporate loans from Wholesale Banking and the steady progress of loans from the Business Banking and Personal Banking segments contributed to the increase of the Gross loans & Advances by 8.2% year-on-year. Likewise, Customer deposits grew by AED 1.2 billion to AED 30.6 billion, a 3.9% growth compared to the end of 2016. 

“Other than the financial performance, the Bank continues to invest in strategic areas and initiatives. During the quarter we commenced our partnership with C3 to open a completely new market segment where the Bank began offering payroll solutions for both banked and unbanked employees of companies. Additionally, we have expanded our remittance solutions by tapping into new corridors across Asia with plans to further expand in the second half of the year. With the aim of simplifying customers’ daily banking requirements, we were the first bank in the Middle East to introduce a new and innovative digital solution, Samsung Pay for ATMs. Looking ahead, the product and service pipeline for this year remains very strong, so expect to see continued product and service innovation from RAKBANK as the year progresses”, added England.

Total Income was AED 1.9 billion for the six months ended 30 June 2017, which increased by 2.1% for the second quarter of 2017 over the previous quarter, though declined by 2.8% over the comparable period in 2016. The Group’s Treasury, Wholesale Banking and Insurance business brought about strong growth in the non-interest income though the net interest income declined due to the changes made in the Bank’s business mix of lending. Operating expenses were marginally up year-on-year after the cost optimisation exercise in the first half of 2016 and the cost to income ratio stands at 37.4%. Impairments continued their downward trajectory from the peak in the third quarter of 2016, declining by 14.9% in the second quarter of 2017 over the previous quarter. Impairments during the six months ended 30 June 2017 were down by 2.4% from the comparable period in 2016.  

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 21.1% at the end of June 2017. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of June 2017 was 14.9% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 90.9% compared to 85.5% at the end of 2016

22/06/2017

RAKBANK is the first bank in the Middle East to introduce Samsung Pay solutions for its ATMs, in partnership with Samsung Gulf Electronics. This innovative digital solution enables the Bank’s customers to make cardless cash withdrawals from RAKBANK ATMs using their Samsung smartphones* without the need for a physical Debit or Credit card. The Samsung Pay solution for ATMs is an end-to-end contactless process that is considered a ‘Mobile Revolution’, which furnishes customers with effective, secure, convenient, and easy-to-use digital solution that will allow customers to withdraw cash without their cards at RAKBANK ATMs.   

Peter England, RAKBANK CEO, said: “RAKBANK has a rich history of innovation where the Bank has managed to transform the concept of digital banking in the UAE through a host of award-winning digital solutions such as the revamped Digital Banking Platform, MobileCash, Tablet Banking, and Web Chat authentication services. Staying true to our prominent position as an innovative and dynamic player, we now extend our Samsung Pay solution to ATMs and create an end-to-end contactless process for our customers. Currently, RAKBANK is taking a phased-out approach and shall begin by targeting ATMs that have strong footfall in locations such Dragon Mart 2, Wafi Mall, and City Centre Me’aisem. Soon, customers will be able to use Samsung Pay solutions on most of the Bank’s ATM network.” 

20/05/2017

KPMG VAT Leader, Rob Dalla Costa, speaks at the VAT Workshop 

RAKBANK continues to raise awareness of the new tax system that is expected to be implemented on 1 January 2018 by inviting Business Banking customers to attend a comprehensive workshop on Value Added Tax (VAT) from special guest Rob Dalla Costa, a director with KPMG in the Lower Gulf, at the Bank’s headquarters in Dubai. Business Banking customers received insights on the basic principles of VAT, the tools needed to prepare for VAT, and what to expect once the VAT is implemented.   

Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said: “RAKBANK is delighted to have Rob Dalla Costa so graciously host the VAT workshop. The aim is to offer our Business Banking customers a detailed roadmap about the potential functionality and features of the VAT.”

Commenting on the VAT workshop, Dalla Costa, a seasoned VAT expert who has worked on similar implementations in both Australia and Malaysia with the government and the private sector, said: “The introduction of VAT represents a fundamental change for the government and businesses in the UAE. It is going to affect almost every business, large and small, and impact almost every facet of their operations. It is absolutely vital that businesses understand the challenges that VAT will bring and I applaud the efforts of RAKBANK to support their Business Banking customers in this way.”

With over 30 years’ of experience in providing a broad range of taxation advisory and consultancy work, Rob was able to give valuable insight into the probable framework of the VAT to RAKBANK’s diverse customer base. 

17/05/2017

RAKBANK aims to offer Pakistanis in the UAE, the second largest national community, the utmost convenience with the recent expansion of its award winning remittance service, RAKMoneyTransfer (RMT), whereby customers can remit money to Pakistan in just 60 seconds from any of RAKBANK branches to Habib Bank Limited (HBL) and other major banks* located in Pakistan. RAKBANK customers are now able to send money to Pakistan for free** at any of the Bank’s branches without having to worry about a cut-off time.  

“The Bank extended its RMT services to Pakistan with the objective of offering UAE’s Pakistani community the ability to immediately remit money back home. This was achieved with the help of the successful partnership that we developed with HBL. I would also like to point out that the money transfer rates that we provide at the Bank are very competitive with the rates found at exchange houses in the UAE,” said Peter England, CEO of RAKBANK.    

Anwar Zaidi, GM- Head of FI-GTS & Global Remittance Business at HBL stated, “We are extremely proud of this partnership between HBL and RAKBANK. We will now enable our customers to send money to Pakistan instantly in a secure and convenient manner. They can now experience accounts immediately being credited with HBL through RAKMoneyTransfer.”

From left to right: Anwar Zaidi, GM- Head of FI-GTS & Global Remittance Business at HBL, and Peter England, CEO of RAKBANK.    

RAKBANK’s RMT is designed to enable everyday money transfer needs of customers when remitting money to India, Nepal, Sri Lanka, Philippines, and now Pakistan. The Bank’s RMT service offers customers a secure, convenient, and cost-effective money remittance 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. Furthermore, RAKBANK’s RMT was recently awarded the title of ‘Remittance Product of the Year in the Middle East’ by The Asian Banker.

08/05/2017

RAKBANK Awarded the Title of Best Performing Brand for 2016

RAKBANK was honored by His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum with the title of “Best Performing Brand – Retail Banking Services” for 2016 cycle at the 23rd Business Excellence Award ceremony hosted by Dubai Economy in Dubai World Trade Center. Since Department of Economic Development (DED) is committed to promoting awareness of excellence in line with the International standing and ambitions of the UAE, RAKBANK partnered up last year with them and became members of the “Dubai Service Excellence Scheme” for mystery shopping activities for which the Bank was then recognized for its excellence in customer service standards throughout 2016.    

“The partnership between RAKBANK and DED is a confirmation that Service excellence is central to RAKBANK’s overall strategy and is one of the key factors that contribute to the success of the Bank,” said Peter England, RAKBANK Chief Executive Officer. “This prestigious award is a testament to the Bank’s continuous effort to remain innovative and ahead of the curve. We will continue to strengthen our relationship with DED and ensure that we build upon it to achieve higher standards of excellence that are in line with the country’s vision.” He added. 

Seen in picture: The RAKBANK CEO, Peter England, and other top management from RAKBANK receiving the award on behalf of the Bank.

03/05/2017

RAKBANK announced the signing of an agreement with C3, a Prepaid Card Service Provider, in order to provide C3 with a BIN sponsorship on their prepaid cards to strengthen the C3 payroll offering. With this partnership, UAE based companies will be able to provide immediate salary transfers to their blue-collared workers on the C3 prepaid payroll card. This enables RAKBANK to offer payroll solutions for both banked and unbanked employees and companies, thus promoting financial inclusion and opening up new market space for the Bank. 

Moreover, the partnership facilitates that C3 prepaid payroll cardholders are able to instantly transfer money to select Asian countries* with RAKBANK’s Award winning** RAKMoneyTransfer remittance service conveniently using the C3 digital mobile application on their Smartphones. In addition, C3 prepaid payroll cardholders are offered loans and other value added services from RAKBANK.     

The agreement was recently signed at the Seamless Payment exhibition in Dubai World Trade Centre. Peter England, RAKBANK Chief Executive Officer, and Marwan Hachem, Edenred Managing Director of Africa and Middle East, along with other top management from RAKBANK, Edenred, C3, and Prepay solutions, attended the signing ceremony.

(From left to right: Peter England, RAKBANK Chief Executive Officer and Marwan Hachem, Edenred Managing Director of Africa and Middle East) 

Commenting on the signing, RAKBANK CEO Peter England said: “The partnership with C3 is in line with RAKBANK’s commitment to offer a more holistic banking experience by providing an entry into the UAE’s blue-collared payroll schemes. The Bank has always been at the forefront of a well-defined segmentation strategy to deliver a diverse selection of products & services. If you take a look at RAKBANK’s cards portfolio, you will notice that our vast selection of cards ranging from prepaid, debit and credit cards all provide unique features and benefits that are customized to each income segment.”

* India, Philippines, Nepal and Sri Lanka
**Remittance Product of the Year in the Middle East by The Asian Banker

01/05/2017

RAKBANK is pleased to announce the launch of Samsung Pay mobile payment solutions to the Bank’s customers in partnership with Samsung Gulf Electronics. With Samsung Pay, RAKBANK customers can make convenient, simple, and secure contactless payments using their Samsung smartphones at their favorite outlets. 

The Samsung Pay solution is an innovative way where RAKBANK customers can now make a payment at retailers using their Samsung smartphones instead of swiping their cards. To begin, customers must first register their RAKBANK Credit or Debit MasterCard card details in the Samsung Pay application, which is available on all the supported Samsung devices**. To make payments using Samsung Pay, a customer needs to swipe up on the screen of their supported Samsung smartphone, select their RAKBANK MasterCard card, authenticate using a fingerprint or PIN, and tap their phone near the Point of Sale terminal. Samsung Pay is accepted almost everywhere in the UAE and abroad as the application works on both Magnetic Secure Transmission (MST) technologies as well as with Near Field Communication (NFC). This means fewer queues and less time spent making a payment.         

Samsung Pay is a highly secure platform as it works with three levels of security—fingerprint authentication, card tokenization that secures the card number registered on the phone and Samsung’s defense-grade mobile security platform Samsung KNOX.  

Recognizing the growth of the digital banking trends, RAKBANK CEO Peter England said, “Our customers want access to the best technology and, in addition to the completely revamped RAKBANK Digital banking platform, Samsung Pay is another example of a digital solution that offers our customers more flexibility, convenience and choice. At RAKBANK, we are constantly introducing new, alternate channels that can facilitate the customer’s banking experience through several different digital touch points.”    

“The UAE is becoming a market where banking and mobile payments are a lifestyle that is increasingly being demanded. We are pleased to be partnering with RAKBANK to provide customers with a wide range of choices when it comes to making purchases, through Samsung Pay. We are committed to making Samsung users, lives easier and RAKBANK customers will be able to use our digital solution with more flexibility, convenience, and choice,” said Mohammad Gharaibeh, Head of Enterprise – Mobile Business, Samsung Gulf Electronics.

**Availability
In the UAE, Samsung Pay is currently available for Galaxy S8 and Galaxy S8+, Galaxy S7 and Galaxy S7 Edge, Galaxy S6 Edge+, Note 5, Galaxy A5 and Galaxy A7 (2016) and Galaxy A Series (2017). Samsung Pay will also be available for the Gear S3

19/04/2017

The National Bank of Ras Al Khaimah (RAKBANK) Group announced today the financial results for the first three months ended 31 March 2017. RAKBANK’s consolidated net profit was AED 154.7 million, an increase of AED 46.0 million over the last quarter of 2016. Gross Loans & Advances increased by 2.2% from December 2016 to AED 30.4 billion on the back of strong growth in the Wholesale banking book.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The trends for the 1st quarter 2017 are showing positive signs. We had a very strong quarter on fee income as our efforts in building the Wholesale Banking and Treasury franchise are really beginning to bear fruit. Our year on year net Interest Income has been affected by our change of business mix, however the efforts in this area put us in a much better position for net earnings growth over the coming quarters. After peaking in the 3rd quarter of 2016 provisions have continued to come off in the last 2 quarters and our forward looking indicators give us comfort that this trend should continue during the course of 2017”.

England also commented “Other than the financial performance, the Bank has had tremendous success in a number of key areas. Our new digital banking platform launched in late 2016 has been very well received by our clients who can now enjoy the convenience of a single digital platform across all of their devices. We have seen significant improvement across the board in all our service quality indicators which has been acknowledged by receiving a number of highly recognised industry awards. During the 1st quarter we also signed agreements with both RAK SME and Dubai SME to work together to continue to support this crucial sector in the UAE economy. As the largest SME bank in the UAE, we remain firmly committed to helping small businesses grow and develop despite challenging conditions in the past 24 months. On the product side we continue to see exceptional traction on our recent product innovations such as our ‘Home in One’ Product which remains to be the only product of its type in UAE market, as well as our recently launched Fawrun deposit product from RAKislamic which has been extremely well received by our clients. The product and service pipeline for this year remains very strong, so expect to see continued product and service innovation from RAKBANK as the year progresses.” 

Total income grew 2.6% compared to the last quarter of 2016, though declined 4.4% over the comparable period in 2016. Net interest income declined as the Bank continued to change its business mix of lending, though this was offset to an extent by strong fee income growth particularly from the Bank’s Treasury and Wholesale banking activities. Operating expenses were marginally up year on year, though were marginally down in comparison to the 4th quarter of 2016 as the Bank continued its focus on cost optimisation. Impairments continued their downward trajectory from the peak in Q3 2016, declining by 4.3% from Q4 2016 though were up 10.7% from the comparable quarter in 2016.

Total Assets rose by 0.8% to AED 42.9 billion compared to the end of 2016. This was due to an increase in Gross Loans and Advances of AED 647.9 million partially offset by decrease in investments of AED 123.0 million and a decrease in lending to banks by AED 112.6 million. Gross Loans and Advances grew by 5.7% year-on-year on the back of a healthy growth in Corporate Loans. Customer deposits grew by 1.3% to AED 29.8 billion compared to the end of 2016. This growth came mainly from an increase of AED 640.6 million in demand deposits partially offset by a decrease of AED 247.4 million in time deposits. 

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 22.2% at the end of the first quarter of 2017. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of the quarter was 15.5% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 86.7% compared to 85.5% at the end of 2016.

12/04/2017

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 2016 was approved. 

During the meeting, attendees unanimously approved all agenda items including the Bank’s balance sheet and profit and loss statements for the financial year ended 31 December 2016. Additionally, the AGM appointed Auditors for 2017 and determined their remuneration as well as approved the remuneration of the Board of Directors. Furthermore, during the AGM, the appointment of Mr. Kantic Dasgupta as a board member was ratified to replace the resigned board member, Mr. Allan Griffiths. 

RAKBANK Chairman, HE Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2016. “The drop in 2016 profit was a result of the Bank’s significant increase in provisions due to our legacy SME loan portfolio, where the global and regional economic headwinds directly impacted the local economy and the performance of our business customers. While 2016 presented many obstacles, we also made substantial progress in the implementation of our three-year strategy, particularly regarding the diversification of our business. We are placing greater emphasis on optimizing synergies within the Group to increase efficiency while supporting the diversification of our revenue streams. By doing so, we aim to better serve our customers by offering them a seamless experience across the Bank’s diverse products and services through industry-leading service excellence, innovation, and simplicity. Furthermore, the new business mix, which includes lower margin and lower risk products, is expected to contribute to a steadier more sustainable growth.”   

RAKBANK CEO, Peter England, said: “The Bank’s diversification strategy that commenced in early 2015 is showing exceptional results with solid growth coming in from both our Wholesale Banking and Treasury unit. We have recognised the need to move away from the Bank’s traditional legacy approach, achieving greater diversity in our balance sheet and income base to minimise the risk of focusing on specific sectors. The Bank effectively merged its online and mobile banking platforms to deliver a seamless digital experience, called RAKBANK Beyond, and we will continue to introduce innovative products and services as well as strengthen our branch and ATM network across the country. We have made significant progress in revamping our Personal Banking segments and have made substantial improvement in our revitalised Credit Card’s business. Additionally, the Bank revolutionized the market for home lending in the region with RAKBANK’s widely acclaimed ‘Home in One’ product that was successfully launched in August 2016.” 

16/02/2017

RAKBANK proposes a dividend of 30 fils per share for the financial year ended 31 December 2016. The proposed dividend will be presented for approval by the shareholders in the Annual General Meeting (AGM) to be held on 5 April 2017 at the Bank’s headquarters in the emirate of Ras Al Khaimah.

02/02/2017

The National Bank of Ras Al-Khaimah (RAKBANK) announced the financial results for the year ended on 31 December 2016. RAKBANK’s consolidated net profit is at AED 663.0 million, a decrease of AED 742.3 million over the previous year. Total Assets stood at AED 42.5 billion, an increase of 4.7% compared to 31 December 2015. On a more positive note the Group’s* operating Profit before impairment losses grew by AED 10.0 million over 2015 mainly as a result of the bank’s cost optimisation strategy which commenced in early 2016.

“2016 has been a very challenging year for RAKBANK as we have seen a significant increase of provisions especially in our legacy SME loan portfolio,” said Peter England, RAKBANK Chief Executive Officer. “From 2008 until early 2015 the Bank’s core focus had been on SME lending and therefore it is understandable that RAKBANK has been significantly affected by the challenges in the SME sector brought about by a range of global and regional factors. We are however seeing some signs of improvement with provisions having peaked in the third quarter of 2016 and showing signs of improvement in the fourth quarter”, explained England.

Total Operating Income declined by AED 99.9 million to AED 3.8 billion mainly due to a decrease of AED 223.2 million in Net Interest Income predominantly due to the decline in the high margin SME Business loan book. Non-interest income grew by AED 123.3 million to AED 1.0 billion. This was mainly due to an increase of AED 132.5 million in income from investments, AED 17.7 million in insurance underwriting profit and AED 12.3 million in foreign exchange and derivative income. This was offset by a decrease of AED 27.2 million in commission income and AED 11.9 million in other income compared to 2015.

Operating costs were down by AED 109.9 million, a decrease of 7.4% from 2015. This was mainly due to a decrease of AED 68.3 million in staff costs, AED 21.7 million in outsourced staff costs and AED 11.1 million in depreciation costs. The Group’s cost to revenue ratio reduced to 35.6% compared to 37.5% for the previous year.

The provision for impairment in loans and advances increased by AED 752.3 million compared to previous year and this was due to larger payment defaults in the unsecured loan products, Business Banking and Commercial Banking segments. Total impairment provisions for the year was AED 1.8 billion compared to AED 1.1 billion in 2015.

“Overall, 2016 was a challenging year, however we made significant strides in advancing our three year Strategic plan. The Bank’s diversification strategy that commenced in early 2015 has been showing exceptional results with solid growth coming in our Corporate and Financial Institutions segments, as well as a very solid performance by our Treasury unit. We have recognised the need to move away from the Bank’s traditional legacy approach, achieving greater diversity in our balance sheet and income base to minimise the risk of focusing on specific sectors. The Bank successfully merged its internet and mobile banking platforms to deliver a seamless digital experience, called RAKBANK Beyond, and we will continue to introduce innovative products and services as well as strengthen our branch and ATM network across the country. We have completely revamped our Personal banking segments and have made significant progress in our revitalised Card business and further enhanced the market for home lending with RAKBANK’s widely acclaimed ‘Home in One’ product that was successfully launched in August of this year,” said England.

Total Assets rose by 4.7% to AED 42.5 billion compared to the end of 2015. This was due to an increase in Gross Loans and Advances of AED 1.2 billion, lending to banks which grew by AED 722.4 million and an increase in investments of AED 695.6 million. Customer deposits grew by 5.7% to AED 29.4 billion compared to 2015. This growth came mainly from an increase of AED 1.1 billion in demand deposits and AED 455.4 million in time deposits.

The Bank’s capital adequacy ratio as per Basel II before taking into consideration profit for the year 2016 stood at 21.8% by the year-end. This compares with 22.3% at the end of 2015, against a requirement of 12% set by the UAE Central Bank. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of the year was 16.9%, compared to 19.1% the previous year. The advances to stable resources ratio stood comfortably at 85.5% compared to 83.3% at the end of 2015.

Commenting on the results, RAKBANK’s Chairman H.E. Mohamed Omran Alshamsi noted: “While 2016 presented many obstacles, we made significant progress in the implementation of our three-year strategy, particularly with regards to diversifying our business. We are placing greater emphasis on optimizing synergies within the Group to increase efficiency while supporting the diversification of our revenue streams. The Bank’s progress in 2016 positions us well for sustained profitable growth. By doing so, we aim to better serve our customers by offering them a seamless experience across the Bank’s diverse products and services through industry-leading service excellence, innovation, and simplicity. We will also continue to strengthen our capacity to meet any future challenges. This has placed us in a strong position to grow in both the medium and long term. The Bank’s new business mix – which includes lower margin and lower risk products – is likely to contribute to a steadier more sustainable growth.”

28/01/2017

RAKBANK recently launched 3 new branches that are conveniently located in central business hubs - Al Hamra in Ras Al Khaimah, Jabal Ali Free Zone (JAFZA) and Dubai Investment Park (DIP) in Dubai. This totals RAKBANK’s presence to 38 branches and over 280 ATMs across the UAE. The strategic location of all 3 branches makes the Bank easily accessible to customers and offers a range of products and services on Personal Banking, Business Banking, and Wholesale Banking. 

Along with a comprehensive Conventional and Sharia-compliant Islamic Banking services, the new branches also offers access to products and services such as the mortgage facility Home in One, a suite of Business Banking products, RAKelite centres, and RAKMoneyTransfer remittance services. The Bank’s top management including the COO, Geoff Stecyk, Director of Branch Distribution, Emad Hittini, and Director of RAK Business, Saleh Ali Saleh, inaugurated the branches.  

Geoff Stecyk, COO of RAKBANK, said that, “RAKBANK’s strategy is to constantly offer a combination of both convenient Branch locations and enhanced Digital Banking solutions for a seamless banking experience, this ensures that the Bank caters to customers across all main locations and channels. The opening of the 3 branches is in line with the Bank’s plan to expand its branch network and to explore and develop major Corporate and Individual relationships in the UAE.” 

For detailed location information when visiting the branches, customers are invited to use the ATM/branch locator.

07/12/2016

Dubai, UAE, 07 December, 2016: Mastercard, a leading technology company in the global payments industry, recently celebrated its 30th anniversary of operations in the UAE with colleagues, financial institutions, and business partners alike. In acknowledgement of the company’s long-standing business partnerships with leading financial institutions in the UAE, Mastercard presented RAKBANK with a commemorative milestone award for ‘First Launches in the Country’ at the exclusive event hosted at Layali Beach, Al Qasr Hotel, Madinat Jumeirah, Dubai.   

On behalf of the Bank, RAKBANK’s Chief Executive Officer, Peter England, accepted the award from Ann Cairns, President of International Markets, Mastercard, in recognition of being the first bank to offer a Cobranded Jewellery credit card in the region and the launch of the Mastercard Titanium credit card.  

(From left to right: Raghu Malhotra, President, Middle East and Africa, Mastercard, Nalin Costa, Director of Sales RAKBANK, Banali Malhotra, Director of Marketing RAKBANK, Peter England, CEO of RAKBANK, Ann Cairns, President of International Markets, Mastercard, Mufaddal Khumri, Director of Cards RAKBANK, Khalid Elgibali, Division President for Middle East and North Africa, Mastercard, and Eyad Al-Kourdi, Senior Vice President and General Manager, UAE, Mastercard)

“These awards are a testament to the Bank’s continuous efforts to remain innovative and competent,” said Peter England, RAKBANK’s Chief Executive Officer. “Both the Titanium and the Cobranded Kalyan Jewellers credit cards underline our commitment to providing faster, simpler and more convenient payment solutions to customers.” 

Eyad Al-Kourdi, Senior Vice President and General Manager, UAE, Mastercard, said: “Completing 30 years in the UAE is a major achievement for Mastercard – one that underlines our commitment towards meeting the growing demands of the market and also our partners’ 

04/12/2016

United Arab Emirates – 30 November 2016: RAKBANK is pleased to announce the arrangement of a five-year US $15 million long term loan facility to Seylan Bank, a financial institution based in Sri Lanka. Seylan Bank has secured the loan for general expansion of its portfolio growth in Foreign Currency Banking Unit (FCBU). The long term funding would also assist in further improving the Asset Liability Management (ALM) gap in Seylan’s FCBU Book. 
 
This is Seylan’s first long term financial agreement with financial institutions based in the Middle East, which reflects strong investor confidence in the Bank’s operations and future growth potential. The loan facility was recently signed at the Capital Club in Dubai International Financial Center (DIFC). Attending the ceremony were Kapila Ariyaratne, Seylan Bank Chief Executive Officer, and Peter England, RAKBANK Chief Executive Officer, along with other senior representatives from RAKBANK and Seylan Bank.

  
Peter England, RAKBANK CEO, said: “We are delighted to have partnered with Seylan Bank to support their general expansion plan of the Foreign Currency Banking Unit. This long term financing allows us to diversify our asset book into various geographies while introducing Seylan Bank to the region.” 
 
Commenting on the signing, Kapila Ariyaratne, Seylan Bank Chief Executive Officer said: “We are extremely pleased to sign up on this partnership as the Bank’s first long term financial agreement with the Middle East market, which reflects strong investor confidence in Seylan Bank’s operations and future growth potential.”

30/11/2016

RAKBANK celebrated the 45th UAE National Day by organizing a special ceremony in its Ras Al Khaimah headquarters and across the 35 branches. Senior management and staff, from different nationalities and backgrounds, all gathered to commemorate the 45th National Day, as well as celebrate the UAE’s culture and heritage. 

The ceremony began with the UAE national anthem, followed with a march performed by the Ras Al Khaimah police to commemorate the nation’s spirit of the union, and ended with the Emirati youth standing alongside one another for the traditional Emirati dance, Harbiya

27/10/2016

The National Bank of Ras Al-Khaimah (RAKBANK) today announced a consolidated net profit of AED 554.2 million for the nine months ended 30 September 2016. The Group’s operating profit increased by 6.1% to AED 1.9 billion as a result of reduction in operating cost by 11.7% offset by a marginal drop in total operating income. 

Total operating income is AED 2.9 billion and is down by 0.8% due to a reduction in the net interest income and net income from Islamic financing by 6.1% that is partially offset by the increase in non-interest income by 17.4%. Non-interest income grew by AED 115.5 million, and this is mainly due to a growth of AED 113.9 million in investment income and AED 8.6 million in income from the insurance segment.

Operating expenses declined by AED 134.2 million during the first nine months of the year compared to the previous year due to various cost saving initiatives taken by the Group. The Group improved its Cost-to-Income ratio to 34.8% compared with 39.1% during the nine months of 2015, as it maintained its focus on cost optimization. The consolidated operating profit before provision for impairment increased by AED 110.2 million to AED 1.9 billion, while the total provisions for impairment for the nine months increased to AED 1.3 billion. As a result, the Bank recorded a net profit of AED 554.2 million for the nine months ended September 30, 2016.

“2016 has been a very challenging year for RAKBANK as we have seen a significant increase of provisions in our legacy SME Business loans portfolio,” said Peter England, RAKBANK Chief Executive Officer. “From 2008 until early 2015 the bank’s core focus had been on SME lending and therefore is it understandable that, as the largest SME bank in the UAE, we would be adversely affected by the very challenging market for SME’s due to a number of factors including a global economic slowdown,” explained England.

“On the positive side, the banks diversification strategy commenced in early 2015 has been showing exceptional results with solid growth coming in our Corporate and Financial Institutions business, as well as a very solid performance by our Treasury unit. On the SME front, we remain firmly committed to this business having completely revamped our entire front end and back end where we continue to book solid business here, albeit under a completely different set of risk parameters than used last year. We have commenced completely revamping our Personal banking business and have seen significant progress in our revitalised Card business and completely changed the market for home lending with RAKBANK’s widely acclaimed ‘Home in One’ product which was successfully launched in August of this year,” added England. 

Total assets grew by AED 275.3 million to AED 40.8 billion as compared to 31 December 2015, mainly as a result of growth in gross loans and advances which were up by AED 463.7 million to AED 29.0 billion. Customer deposits grew by AED 544.9 million during the nine months of 2016 to AED 28.4 billion as compared to AED 27.8 billion as at 31 December 2015. 

The Bank’s capital adequacy ratio as per Basel II requirement that comprises entirely of Tier 1 capital is 23.9%, compared with 24.4% at the end of the previous year. This is against a current minimum total capital ratio of 12.0% prescribed by the Central Bank in the UAE. At the end of this quarter, the regulatory eligible liquid assets ratio is 18.7% and advances to stable resources ratio stood comfortably at 84.3%. Total shareholder’s equity is AED 7.5 billion including the current year profit.  

Commenting on the results, RAKBANK’s Chairman H.E. Mohamed Omran Alshamsi noted “We expect to see on-going challenges during the course of 2016 from the Bank’s legacy SME Business loans portfolio, however we see positive mid to long term benefits from the Bank’s strategy that focuses on a larger balance sheet catering to all customer segments in the UAE. The bank is well placed for growth with a very strong capital position and ample liquidity from a well-diversified depositor base. We remain committed to the SME sector, however the journey we commenced last year to re-enter the Wholesale banking market and revitalise our Personal banking business is beginning to bear fruit and is crucial to building a long term sustainable banking franchise.”

24/10/2016

RAKBANK announced the signing of a Memorandum of Understanding (MoU) with Network International (NI), the leading payment solutions provider in the Middle East and Africa (MEA), in order to reach an agreement to provide merchants seamless access to NI‘s POS and payment gateway products. With this partnership, UAE merchants will have speedier and more direct access to POS machines, payment gateways, and competitive financing options. In addition, the agreement facilitates that the two parties will cooperate and benefit from each other’s networks, customers, systems, techniques and expertise for the purpose of enhancing customers’ experience. 

The MoU was recently signed at GITEX Technology Week in Dubai World Trade Centre. Peter England, RAKBANK Chief Executive Officer, and Bhairav Trivedi, Network International Group Chief Executive Officer, along with Dhiraj Kunwar, RAKBANK Director of Business Banking, and Samer Soliman, Managing Director – Group Acquiring of Network International, attended the signing ceremony.  

(From left to right: Dhiraj Kunwar, RAKBANK Director of Business Banking, Peter England, RAKBANK CEO, Bhairav Trivedi, Group CEO of Network International, and Samer Soliman, Managing Director – Group Acquiring of Network International)

Peter England, CEO of RAKBANK, said: “As a prominent bank in the SME space, we are always looking to bring our valued customers added choice and convenience. Our partnership with Network International gives us the opportunity to support customers by offering them convenient business banking solutions and provide easy access to POS and e-payment gateways for their businesses.” 

Bhairav Trivedi, Group CEO of Network International, said: “As the leading provider of innovative payment solutions in the region, Network International is delighted to sign a strategic agreement with RAKBANK that will support the UAE merchant’s business needs. SMEs remain the backbone of our economy and our offering of state-of-the-art POS and e-payment gateways combined with RAKBANK’s financing solutions, will provide enhanced support to this merchant base.” 

11/10/2016

With an aim of addressing the financial needs of SMEs in the UAE, RAKBANK extends its lending to small and medium-sized enterprises (SME) through the launch of a suite of new Business Banking products. The ‘Point of Sale’ loan (POS), machinery loan, real-estate financing, and lastly a buy-out loan that will assist SME customers in managing their day-to-day liquidity as well as plan their business expansion.   

Customers can now enjoy four new Business Banking products that will help them meet all their financial needs. For starters, the POS loan is mainly directed to retailers in the UAE. Providing retail businesses the extra support that is needed by offering a loan amount based on the total value of transactions that are made through the POS machine. Real-estate financing supports the capital expansion plans of SMEs by offering customers the opportunity to own commercial property. With the real-estate loan, customers can enjoy flexible pricing, repayment period and loan tenor.

The Bank also launched asset backed financing to help customers buy machinery, equipment, and other commercial assets to support their expansion plans.  With attractive rates and financing solutions, customers can also take advantage of the available re-financing option. Lastly, companies in the UAE that are in search of a better financial solution to manage their liquidity without additional cost or collateral can now look to RAKBANK and avail a buy-out loan. 

Additionally, with a renewed focus on strengthening relationships with valued customers, the Bank also provides an advisory service to its Business Banking customers to ensure that they feel supported at every stage in their business lifecycle. This service is available in person or virtually via the Bank’s many ‘touch points’. 

RAKBANK Chief Executive Officer, Peter England, said: “We are one of the pioneers in supporting SMEs in the country and we therefore remain fully committed to the Business Banking segment. We will continue to help this segment grow by extending innovative and collaborative solutions, because we believe that the potential of SMEs will generate greater returns for the economy.”   

06/10/2016

RAKBANK is pleased to announce the arrangement of a three-year US$10 million medium term loan facility to DFCC Bank PLC, a leading financial institution in Sri Lanka. DFCC Bank has secured the loan for general expansion of its Offshore Banking Unit (FCBU).  

The loan facility was recently signed at Dubai International Financial Center (DIFC). Attending the ceremony were Lakshman Silva, DFCC Bank Deputy Chief Executive Officer, and Peter England, RAKBANK Chief Executive Officer, along with other senior representatives from RAKBANK and DFCC Bank.

(From left to right: Rahul Oberoi, RAKBANK Managing Director Wholesale Banking, Peter England, RAKBANK CEO, Lakshman Silva, DFCC Bank Deputy CEO, and Kapila Nanayakkara, DFCC Bank Senior Vice President Treasury & Resource Mobilization)

Peter England, RAKBANK CEO, said: “We are pleased to have partnered with DFCC Bank to support their general expansion plan of the Offshore Banking Unit. This medium term financing allows us to diversify our asset book into various geographies while introducing DFCC Bank to the region.”       

Commenting on this significant achievement, Lakshman Silva, Deputy Chief Executive Officer of DFCC Bank said: “We have strong aspirations to grow our offshore banking business and we believe these funds will provide the right momentum to achieve our growth plans and support our expansion strategy. Our ability to raise medium term funding on this scale from a reputed overseas financial institution reflects investor confidence in DFCC Bank’s operations and future growth potential. This is our first foray into a Middle Eastern market for medium/long term financing.”