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18/02/2018

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

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

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

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

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

30/01/2018

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

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

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

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

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

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

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

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

21/01/2018

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

28/11/2017

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

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

23/11/2017

RAKBANK is the first bank in UAE to partner with Ripple to leverage on its global BlockChain network (RippleNet) to power cross border payments. Recognizing the rising power of blockchain in today’s markets, the Bank’s tie up with Ripple has enabled the launch of instant, frictionless, and secure money transfer services through RAKBANK’s award winning* RAKMoneyTransfer (RMT) to Axis Bank account holders based in India using the power of Blockchain. These live retail remittance payments from RAKBANK to Axis Bank reach their destination account in seconds and with end-to-end visibility over the journey of the payment.

Joining RippleNet forms a part of RAKBANK’s commitment to support the significant and growing remittance flows from the UAE to India, as well as other major remittance corridors in the region. With the potential to connect to RippleNet’s more than 100 members, the Bank plans to roll out its Ripple-powered RAKMoneyTransfer remittance service to other markets. The Bank‘s strategic partnership with Ripple changes and revolutionizes the method in which money transactions are processed, which is beneficial to the customer as it is both time and cost effective. 

Peter England, RAKBANK CEO, said: “We at RAKBANK believe in leveraging new technologies that constantly enhance our customer experience and by using Ripple’s Blockchain solution to power international payments, our customers can now send money home easily and in real time. Joining the Ripple network is in line with not only our Blockchain strategy, but it also allows us to expand our remittance footprint. This will help us scale our business and provide our customers with a first-class digital payments experience.”

Himadri Chatterjee, President, Transaction Banking, Axis Bank, said, “While there have been significant innovations in domestic payments, cross border remittance has seen limited developments. Using APIs and distributed ledger technology, there is an opportunity to radically change the way international payments are handled. We are excited with the potential of the technology to bring innovative services to the market and help us enhance value to our customers

06/11/2017

‘RAKBANK Pay’ Brings Payment Solutions to a New Level with the Enhanced Merchant Acquisition Business

RAKBANK is entering into the merchant acquisition business with ‘RAKBANK Pay’ by offering merchants across the country the ability to accept electronic payments safely and securely using the latest technology across all channels. In line with the Bank’s strategy to diversify its portfolio, this will provide RAKBANK’s large SME and Corporate customer base and the wider UAE merchant community with cost effective payment acceptance solutions coupled with superior service delivery.

The payments industry landscape is rapidly evolving and this has increased the need to provide new technological solutions to merchants. The Bank will provide both the merchant and the individual customer with real-time, frictionless, flexible, seamless and scalable transactions through Point of Sale (PoS) operations, mobile Point of Sale (mPoS), and e-commerce/online payment solutions.

Aligned with the Bank’s commitment to bring ‘Simply Better’ banking to the UAE market, ‘RAKBANK Pay’ delivers innovation in the current payment acquiring landscape. What differentiates ‘RAKBANK Pay’ from other payment solutions is that it will provide innovative acquiring services and solutions to support the ever-changing needs of merchants, besides offering traditional payment acceptance methods.

Peter England, RAKBANK CEO, said: “The Bank’s entry into merchant acquisition gives us the opportunity to support our SME and corporate customers. This will also allow the Bank to focus on its client acquisition, relationship management, and product development activities to bring innovative and customer friendly payment solutions to the UAE market with an aim to make payments simpler and safer. We are delighted to have formed a strategic partnership with Etisalat as our managed service provider for our Merchant Acquiring business to enhance the customers’ journey. The Bank is always finding new ways to offer our valued customers more flexibility, convenience, and choice regarding their everyday banking requirements,”

05/11/2017

Ras Al Khaimah, UAE - RAKBANK marked today the UAE Flag Day with a flag hoisting ceremony at its headquarters in Ras Al Khaimah in the presence of few members of the Bank’s management and employees. As a long standing player in the UAE community, the ceremony was part of RAKBANK’s commitment to commemorate the UAE’s National Flag Day.

24/10/2017

RAKBANK today brings its customers Apple Pay, which is transforming mobile payments with an easy, secure and private way to pay that’s fast and convenient.
 
Apple Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by credit and debit cards. To begin, customers just need to add their RAKBANK credit, debit or prepaid card to Apple Pay and can simply use it in store with iPhone SE, iPhone 6 and later, and Apple Watch. 
 
Security and privacy are at the core of Apple Pay. When you use a credit or debit card with Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device. Each transaction is authorized with a one-time unique dynamic security code.
 
“RAKBANK has always been at the forefront of empowering customers with technology-based solutions that is aimed at saving them valuable time,” said RAKBANK CEO, Peter England. “Apple Pay perfectly exemplifies a digital solution that offers our customers more flexibility, convenience, and choice by providing them access to world-class technology at their fingertips,” added England.
 
In addition, RAKBANK is one of the first banks in the UAE to launch Apple Pay on more than 100 contactless (NFC) enabled ATMs. This allows the Bank’s customers to make cardless cash withdrawals from ATMs using their iPhone or Apple Watch without the need for a physical debit or credit card. 
 
In stores, Apple Pay works with iPhone SE, iPhone 6 and later Apple Watch. Using Apple Pay in stores means fewer queues and less time spent making a payment. 

Online shopping in apps and on websites accepting Apple Pay is as simple as the touch of a finger with Touch ID, so there’s no need to manually fill out lengthy account forms or repeatedly type in shipping and billing information. When paying for goods and services on the go in apps or Safari, Apple Pay works with iPhone 6 and later, iPhone SE, iPad Pro, iPad Air 2, and iPad mini 3 and later. You can also use Apple Pay in Safari on any Mac introduced in or after 2012 running macOS Sierra and confirm the payment with iPhone 6 or later or Apple Watch, or with Touch ID on the new MacBook Pro.

Click here for more information on Apple Pay.

The National Bank of Ras Al Khaimah (RAKBANK) Group achieved a 9.4% growth in the consolidated net profit of AED 606.3 million for the nine months ended 30 September 2017. The third quarter of 2017 generated a profit of AED 224.8 million, which is a significant increase of 106.7% year on year. Gross Loans and Advances stood at AED 32.6 billion as of 30 September 2017, up by 12.5% compared with the same period last year. The steady growth of the Gross Loans & Advances led to an increase of Total Assets by 8.3% to AED 46.1 billion compared to the end of 2016. Additionally, Customer Deposits grew by AED 2.1 billion to AED 31.5 billion, a 7.0% growth compared to the end of 2016.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “RAKBANK’s performance these past nine months is a reflection of the Bank’s diversification strategy that was initiated a few years ago. All the various business segments of Wholesale Banking, Business Banking, Personal Banking, and Treasury have made solid progress throughout the year. Whilst diversifying our loan book and growing into new areas in Treasury and Wholesale banking particularly, the bank remains very committed to the SME segment despite the challenges faced in this area in the past 2 years.”

Total Income increased by 1.2% for the third quarter of 2017 compared to the same quarter of the previous year. The Group’s Wholesale Banking, Business Banking and Insurance businesses brought about strong growth in the non-interest income despite the net interest income for nine months declining due to the changes made in the Bank’s business mix of lending. Operating expenses increased by 6.6% year-on-year as a result of investments in new lines of business as well as continue strengthening of Compliance and Risk, and the cost associated with improvements in debt recovery. As a result of these investments the cost to income ratio for the period increased marginally to 37.7%. Impairments continued their downward trajectory from its peak in the third quarter of 2016, declining by 27.8% in the third quarter of 2017 compared with the third quarter of previous year and is down by 12.0% in the nine months compared to the same period in 2016. 

“With several strategic partnerships signed this past quarter, the Bank continues to pursue new initiatives that to support its chosen market segments. One example is the signing of an agreement with a FinTech Supply Chain Finance platform, Invoice Bazaar, to further digitize our offerings and open up a new channel in SME lending. In addition, we signed a Memorandum of Understanding (MoU) for Managed Point of Sale Services with Etisalat, a first-of-its-kind approach in the UAE payments and banking industry which will help us deliver a superior Merchant Acquiring platform particularly for our SME client base. The Bank will continue to invest in product, service, and technology enhancements to ensure that we are providing a full range of products and services to our valued customers,” added England.

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 20.4% as of the end of September 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 September 2017 is 14.1% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 88.8% compared to 85.5% at the end of 2016.

16/10/2017

In its strive for added customer convenience and banking simplicity, RAKBANK recently upgraded its RAKselect service across Conventional and Islamic Banking. With a strong focus on providing convenient services to the different customer segments, the Bank is extending RAKselect service to a wider customer segment by offering them access to a more customized banking experience with new benefits and privileges. 

RAKselect has been made available to customers who are earning a monthly income of AED 20,000 and above. All RAKselect customers will automatically start earning interest on their RAKselect accounts. Customers can also use the RAKselect banking areas across all the Bank’s branches. Preferential treatment at Teller counters, preferential tariff on select banking services and access to Personal Financial Consultants (PFC) who will assist them with their investment and insurance needs, will all be available to these customers. In addition, the limit on withdrawals has been enhanced to AED 20,000 and AED 50,000 on customers’ RAKselect Debit Cards on ATM withdrawals and retail spends respectively. Customers can also apply for the Bank’s newly launched ‘High Fliers’ Credit Card or any of RAKBANK Conventional or Islamic Credit Cards based on income and eligibility*. Additionally customers who meet certain Asset and Investment thresholds will also be qualified for RAKselect.

“RAKBANK prioritizes convenience in the customer’s banking experience. We are committed to offering our customers the highest possible standards of service with a full range of benefits and exclusive banking services that keep pace with their lifestyle,” said RAKBANK CEO Peter England. “We are pleased to announce the significant upgrade of RAKselect service to accommodate our customers’ needs,” added England. 

*Click here to learn more about RAKselect eligibility criteria