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

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

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

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

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

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

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

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

Q1 2019 highlights 

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

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

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

Asset growth

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

Asset quality and impairments

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

Q2 2019 outlook

England concluded:

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

Financial highlights

Income statement highlights

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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. 

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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.

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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%.

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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. 
 

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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.

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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.”

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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.

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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.

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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.

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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.”

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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.”

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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.”

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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.