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

18/04/2016

RAKBANK successfully concluded its Annual General Meeting (AGM) today at its headquarters in the emirate of Ras Al Khaimah, where the distribution of 50% cash dividends to shareholders for the financial year ended 31 December 2015 was approved. During the meeting, attendees unanimously approved all agenda items, including the amendment to the Bank's Articles of Association in accordance with the requirements of the Commercial Companies Law No. (2) for 2015. Furthermore, during the AGM, the major shareholder proposed the nomination of Mr. Ahmed Abdulkarim Julphar as a board member to replace Mr. Hamad Abdulaziz Al Saqr who resigned last December 2015. This item was also approved.

RAKBANK Chairman, HE Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2015. “The 3.4% year-on-year decline in profit in 2015 was a result of global and regional economic headwinds impacting the local economy and the performance of our business customers. Therefore, we focused throughout the year on undertaking measured investments in new growth areas to sustain healthy levels of profitability. In addition to diversifying income streams, the Group placed greater emphasis on building specialization and optimizing synergies within its functions. We also made a strong commitment in 2015 to regain our position as the pre-eminent bank in the emirate of Ras Al Khaimah.”

RAKBANK CEO, Peter England, said: “In 2015, while building on our strong foothold in Retail Banking, we also increased our penetration into larger businesses to grow our Commercial and Corporate Banking portfolio, Trade Sales, Financial Institutions Lending, and Asset Based Financing. In addition, we began working towards boosting activity in our Treasury segment. We will continue to explore new business lines and enhance internal processes throughout 2016. We are aware of changing market conditions that lie ahead and will continue to adjust our risk appetite accordingly.” 

15/03/2016

From living rent-free to winning a car, every 2 months the Bank’s MasterCard^® Credit Cardholders walk away with a wide selection of rewards.

Every two months, RAKBANK gives away an exciting series of rewards to 21 lucky winners from the “Dream It. Live It.” programme. These anticipated rewards range from some of life's basic necessities to indulgent luxuries. Through “Dream It. Live It.”, winners are spared from paying utility bills for an entire year or having to worry about their children’s annual school fees. In addition, Cardholders get the chance to win 100 grams of gold, complimentary car fuel top ups or grocery shopping for an entire year, weekend getaways, airline tickets, dining vouchers, the latest gadgets, and much more.

Abraham Jose, a RAKBANK customer of more than seven years, is one of latest “Dream It. Live It.” winners who was lucky enough to have his rent paid for an entire year. “I am truly grateful for this pleasant surprise,” said Jose. “Who wouldn’t want to live rent-free?!” Another lucky winner, Lester P Barrameda, drove off with a brand new car. He said that RAKBANK’s “Dream It. Live It.” rewards programme gave him hope for the New Year. 

Cardholders automatically enter the draw for the “Dream It. Live It.” programme when they use their RAKBANK and AMAL MasterCard Credit Cards. With every AED 200 spent on the Credit Cards, Cardholders earn two chances to enter the draw, and every AED 200 spent overseas gives Cardholders four chances. The draw is held every 2 months and 21 winners are announced in every draw, with a chance to win a total of 12 prizes.

“Dream It. Live It.” reward programme is available on seven of the Bank’s conventional and AMAL MasterCard^® Credit Cards including RAKBANK Titanium MasterCard^® Credit Card, RAKBANK KALYAN JEWELLERS MasterCard^® Credit Card, and others.

01/03/2016

In line with its commitment to Emiratisation and developing the local talent pool, RAKBANK is pleased to announce its new two-year Management Associate Programme, ‘IRTIQA’, revealed at the Ras Al Khaimah (RAK) Employment and Training exhibition held between March 1st to 3rd where onsite interviews will be conducted. Through the new programme, fresh Emirati graduates will be part of an engaging and interactive learning programme that will define and shape their skills and prepare them for a successful banking career. 

Once selected, ‘IRTIQA’ associates will undergo rigorous training across several functions at the Bank with a focus on the three main banking departments – Retail, Credit, and Business Support. The associates will experience an accelerated learning opportunity ranging from operational background activities to the frontend business production. They will be rotated across the departments where a mentor will be designated to properly advise and guide the trainees on their career development journey throughout the program.

“The main objective behind ‘IRTIQA’ is to enrich the careers of Emirati fresh graduates through professional hands-on experience in the Bank,” said Suhaila Al Jesmi, Head of Talent, Learning, and Emiratisation at RAKBANK. “We are committed to including local talent in the Bank’s management team and one way to do so is through a solid, fast-paced, and well-rounded management programme like ‘IRTIQA’.” 

RAKBANK is working alongside top colleges and universities in the UAE to scout for viable candidates for its Management Associate Programme. ‘IRTIQA’ complements the Bank’s strategy to constantly invest in the career development and growth of UAE Nationals by increasing their knowledge and skills and preparing them for future positions where they can play influential roles in the UAE banking industry. 

10/02/2016

In line with its commitment to offer customers a more wholesome banking experience, RAKBANK is pleased to announce the launch of its real-time money remittance service, RAKMoneyTransfer. Through RAKMoneyTransfer, funds are credited in less than 60 seconds of making the transfer from RAKBANK to an ICICI Bank account in India and are processed within 60 minutes of making the transfer to all the other Indian banks*. 

Bank customers can conveniently place RAKMoneyTransfer requests through the RAKBANK Online Banking platform. Alternatively, customers can visit Bank branches and place their requests in person. Not only is RAKMoneyTransfer a secure and fast way of transferring money, it also offers attractive exchange rates and there are no deductions for the beneficiary from the Indian banks. RAKBANK customers can avail this service free of cost till April 25th 2016.

“RAKMoneyTransfer aims to better serve the large Indian community based in the UAE, especially those looking for a convenient and secure solution when sending money to their home country,” said Anand Kadakol, Director of Retail Payments at RAKBANK. “The UAE is the second largest remittance market in GCC after KSA. This service complements the Bank-wide strategy to take advantage of market opportunities and ensure that customers enjoy a more wholesome banking experience.” 

In 2016, the Bank plans to expand the reach of this service to other countries, like Philippines, Pakistan, Bangladesh, Nepal and Sri Lanka, and introduce additional service facilities on an on-going basis. 

03/02/2016

RAKBANK Group today announced AED 1,405.3 million in Net Profit for the year ended 31 December 2015, a marginal decrease of AED 49.3 million over the previous year. Operating income grew by 10.8% year-on-year to AED 3,939.2 million as Net Interest Income and Income from Islamic products net of distribution to depositors were up by 10.6% to AED 3,048.3 million. Non-Interest income grew by 11.7% to AED 890.9 million.
 
With a 1.8% reduction in Operating Expenses in 2015, the Group improved its Cost-to-Income ratio to 37.5% compared to 42.3% in 2014 as it maintained its focus on cost optimization, which saw the Group consolidate some business lines in an effort to enhance synergy and improve efficiency across its operations. As a result, the Operating Profit of the Group before provisions increased by 20.0% to AED 2,460.7 million. 
 
However, provisions for Loan Impairments increased by AED 460.1 million over last year due to higher loan provisioning mainly in the unsecured lending portfolios. Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 3.2% compared to 2.4% at the end of the previous year. The Bank is well provisioned against loan losses with a conservative Loan Loss Coverage ratio of 81.4% compared to 87.1% at the end of 2014, which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans. 
 
During the year, the Group continued to generate solid and sustainable growth. Year-on-year total Retail Banking loans grew by AED 1,327.8 million, up by 5.4% over the previous year. The major successes of the Retail Banking segment this year were the launch of a new premium banking service (RAKelite), three new MasterCard Credit Cards, and a new retail remittance offering branded RAKMoneyTransfer.  
 
In the fourth quarter of 2015, RAKBANK moved its SME business to the Retail segment and renamed its Business Banking segment to Wholesale Banking in line with the Bank’s strategy to increase penetration into larger businesses and to focus on growing its Commercial and Corporate Banking portfolio, Trade Sales, Financial Institutions Lending, and Asset Based Financing. Year-on-year total Wholesale Banking loans grew by 138.1% to AED 2,429.4 million.
 
Balance Sheet highlights included a 10.6% increase in Gross Loans and Advances to AED 28,542.7 million across the Bank’s Retail and Wholesale portfolios. The Group’s Total Assets grew by 16.4% to AED 40,553.1 million. Customer Deposits were up by 12.9% to AED 27,820 million mainly from an increase of AED 2.5 billion in Demand Deposits and AED 653.2 million in Time Deposits. Within that, Islamic customer deposits grew by AED 899.2 million to AED 3.5 billion compared to the previous year. During the first half of 2015, the Group successfully issued the second tranche of USD 300 million notes under its USD 1 billion medium term note program. 
 
H.E. Mohamed Omran Alshamsi, RAKBANK Chairman, said: “We remain committed to generating solid and sustainable growth across our Retail, Wholesale, Treasury and Insurance segments. 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 customer service, innovation, and simplicity. We will also continue to strengthen our capacity to meet any future challenges.” 

Commenting on the Group’s performance, RAKBANK Chief Executive Officer, Peter England, said: “The Bank has faced stronger than expected headwinds in our Retail and Small Business Finance portfolios due to the challenging global and regional environment which is beginning to have an effect on some segments in the UAE. Despite market challenges, Operating Profit before Provisions increased by 20.0% over the previous year, reflecting healthy and sustainable growth in our key business segments. In late 2014, we commenced a concerted effort to diversify the income base and improve the risk profile of the Group by moving into new business lines such as Wholesale Banking, Insurance, and Remittance and we are making considerable progress in these areas. We also took the opportunity in 2015 to remove duplication and inefficiency in our organization structure, which had been built up over many years of very strong growth, and this is reflected in our lower cost base in 2015. With a strong commitment to customer centricity, the Bank remains focused on innovation to better serve customers. In addition to winning several awards for our digital solutions in 2015, RAKBANK became the first bank in the UAE to achieve the ISO 9001:2015 version certificate for its Branches and Inbound Contact Centre.”
 
The Bank’s Tier 1 ratio as per Basel II, after taking into consideration the profit for 2015 and the proposed dividend, was 24.4% at yearend (subject to shareholders and final UAE Central Bank approval), compared to 26.5% at the end of 2014, against a requirement of 12% set by the UAE Central Bank. The regulatory eligible liquid asset ratio at the end of the year was 19.1%, compared to 20.0% at the end of 2014, and advances to stable resources ratio stood comfortably at 83.3% compared to 87.9% at the end of 2014.

At the board meeting held on 02 February 2016, the Directors recommended a cash dividend of 50% subject to shareholders’ and final UAE Central Bank approval. The Directors consider that the Bank is well placed to meet any challenges faced in 2016. The dividend recommendations will result in 40% 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. 

20/01/2016

RAKBANK is moving forward with a plan to revisit its headcount where necessary to better reflect business volumes and improve efficiency across its operations. Regrettably, the plan involves parting ways with up to 250 expatriate employees from the Bank and its partners. However, no change has been made to the Bank’s business strategy and the Bank continues to offer its existing products and services to all its customer segments. In fact the Bank has recently re-entered the Wholesale banking space and has been significantly increasing its product offerings and headcount in this segment, which is set to continue throughout 2016.

“The Bank’s headcount had grown by around 600 in the last three years on the back of a significant increase in new business volume, which has now settled at more sustainable levels,” said Peter England, RAKBANK Chief Executive Officer. Additionally there was significant duplication in the past with the Bank having two completely separate teams servicing SME clients, which led to inefficiency and customer confusion. The merging of these teams under a new SME unit as part of Retail Banking will enhance service to our customers as well as improve our cost efficiency.

06/01/2016

United Arab Emirates, 06 January 2016: RAKBANK recently launched the RAKBANK RED MasterCard Credit Card, the Bank’s first contactless payment card. Through Tap & Go^TM contactless payment solution, holders of the RED MasterCard^® Credit Card can make a payment simply by tapping the Card at enabled POS terminals to process the transaction in just a few seconds. This means fewer queues and less time spent making a payment.
 
The RAKBANK RED MasterCard^® Credit Card, which is accepted globally, has no annual fee, offers unique discount rates of up to 2% on both local and international transactions, and extends one free remittance to India through RAKMoneyTransfer. In addition, cardholders benefit from dining offers at over 220 restaurants and outlets across UAE, various insurance covers such as credit shield, purchase protection and travel accident, and being part of the Bank's "Dream It. Live It.” rewards programme.
 
“RAKBANK is committed to empowering customers with technology-based solutions that save their valuable time and money,” said Ian Hodges, Managing Director of Retail Banking at RAKBANK. “We always strive to offer our customers a convenient and hassle-free banking experience whether through our award-winning Mobile Banking, MobileCash, and web chat solutions, or with our recently launched MasterCard^® contactless Tap & Go^TM facility via the RAKBANK RED MasterCard® Credit Card.”
 
The RAKBANK RED MasterCard^® Credit Card is the third credit card launched by the Bank in less than 12 months. The Bank previously launched the RAKBANK World MasterCard^® Credit Card, which offers up to 10% cashback on travel, hotel dining, and supermarket spends, and a co-branded KALYAN JEWELLERS MasterCard^® Credit Card, which offers loyalty points that can be redeemed against jewellery purchases at any Kalyan Jewellers showrooms in the UAE.  

04/01/2016

United Arab Emirates, 04 January 2016: RAKBANK is pleased to announce that it is the first bank in the UAE to achieve the ISO 9001:2015 version certificate for its Branches and Inbound Contact Centre, certified by QCS Management Pvt Ltd and accredited by Joint Accreditation Systems – Australia New Zealand (JAS-ANZ). ISO 9001 certification benchmarks the standard of Quality Management System (QMS) of institutions based on the highest international standards and focuses on customer satisfaction. 
 
Peter England, RAKBANK Chief Executive Officer, said: “The certification is just one element of a continuous commitment to quality management and to achieving maximum stakeholder satisfaction. It also reflects a strong bank culture for Service Quality and employee dedication. I am pleased that the Bank’s effort and commitment to Service Quality are now officially recognized through this international certification.” 

RAKBANK’s QMS is a collection of business processes focused on achieving the Bank’s quality policy and quality objectives across its 35 branches and its Inbound Contact Centre. The Bank’s strategy ensures the very best level of service is provided to customers by identifying new tools and systems that maximise engagement with customers at all touch-points.
 
The certification process included an extensive review and onsite audit of business processes and departments against global best practices in quality based on the requirements of ISO 9001:2015 (latest version).

10/12/2015

Bank is recognized for Best Service Innovation and Best Mobile App

RAKBANK is pleased to announce that it has received two Service Olympian Awards by Ethos Integrated Solutions, an independent evaluation body. RAKBANK was recognized for its commitment to service excellence with the Best Service Innovation award for its Web Chat and Mobile Cash solutions and Best Mobile App award for its Mobile Banking platform.

RAKBANK’s authenticated web chat service gives customers the opportunity to use banking services via web chat safely by authenticating them on the public website and to chat whilst on the online banking platform without additional authentication. This allows chat agents to seamlessly assist customers and avoid unnecessary delays.

MobileCash is another convenient digital banking solution that gives customers the ability to withdraw cash and send money to friends, family or anyone in the UAE instantly using nothing but their mobile phone. This service is widely used feature of the RAKBANK Mobile Banking App service, which has been recognized by Ethos Integrated Solutions for the convenience it extends to customers by helping them manage their accounts, deposits, cards, investments and loans. It is also used to transfer funds, pay utility bills, download statements, place various banking requests, and much more without visiting a branch.

“Service excellence has always been central to RAKBANK’s overall strategy and we recently saw a renewed focus on customer service and on simple and convenient banking solutions,” said Peter England, RAKBANK Chief Executive Officer. “To be recognized for innovation and supremacy in digital solutions is a testament that not only are we constantly looking for ways to make use of technological advancements, but we regularly re-evaluate our digital offering and launch new or improved services that ensure a simple and hassle-free banking experience for customers.”

According to Ethos, two to three applicants were shortlisted for each award category, with the exception of the People’s Choice Award, and presented to the expert judging panel which included Robert Keay from Ethos, Philip Forrest from the European Business Awards and The International Customer Service Institute, Dr. Alaa Garad from the Advisory Board of the University of Salford UAE and Investors in People, UAE and Professor Adré Schreuder from The South African Customer Satisfaction Index.

The awards’ benchmarks are based on key criteria from The Customer Experience Management Model of The International Customer Service Institute (TICSI).

09/12/2015

RAKBANK enhances its “Dream It. Live It.” MasterCard^® Credit Card programme
 
RAKBANK continues to turn dreams into a reality by revamping its “Dream It. Live It.” programme for its conventional and AMAL MasterCard^® credit cards. The rewards available to cardholders range from some of life's basic necessities to the most indulgent luxuries.
 
The new rewards give cardholders the chance to live a year either rent-free, without paying any utility bills, or are spared their children’s annual school fees. Other lucky winners will drive off with a brand new car or win free fuel or grocery supplies for an entire year. The programme prizes also include free weekend getaways, free airline tickets to the customer's hometown, dining vouchers, the latest gadgets, 100 grams of gold, and a free shopping spree. 
 
Cardholders automatically enter the draw for the “Dream It. Live It.” rewards when they use their RAKBANK and AMAL MasterCard credit cards. With every AED 200 spent on the credit cards, cardholders earn two chances to enter the draw, and every AED 200 spent overseas gives cardholders four chances. The draw is held every 2 months and 21 winners are announced in every draw, with a chance to win any of the 12 mentioned prizes.  
 
“We always listen to our customers to ensure that we regularly meet their needs,” said Mufaddal Idris Khumri, Head of Cards at RAKBANK. “The enhanced “Dream It. Live It.” programme reflects the Bank’s endeavour to provide customers with unique rewards that add the most value to their lives.”   
 
“Dream It. Live It.” reward programme is available on 7 of the Bank’s conventional and AMAL MasterCard^® credit cards including RAKBANK Titanium MasterCard^® Credit Card, RAKBANK KALYAN JEWELLERS MasterCard^® Credit Card, and others. 

01/12/2015

RAKBANK celebrated the 44th UAE National Day in its Ras Al Khaimah headquarters and across the Bank's 35 branches whereby Bank staff recited Arabic poetry and enjoyed Emirati food and a performance of traditional dance.

10/11/2015

RAKBANK recently supported the UAE's only cross-country charity run, “7Emirates Run,” organized by Al Jalila Foundation on the occasion of the UAE National Sports Day on 25th November and to celebrate the UAE 44th National Day on 2nd December. The 575 kilometre, 12-day charity run managed to raise the targeted amount of AED 777,000 to pay for life-transforming surgeries and post-operative medical support for UAE-based children that are unable to walk in order to ‘get children back on their feet’.  The run began at the Khalidiya Palace Rayhaan Hotel by Rotana in Abu Dhabi, which organized a number of community fundraising activities leading up to the start of the cross-country event. RAKBANK staff participated in the Dubai 7 kilometre social run to support this philanthropic cause. 

12/11/2015

RAKBANK recently won the ‘Best Segment Solution’ award for RAKBANK World MasterCard^® Credit Card at the MasterCard Innovation Forum 2015, held in Kuala Lumpur. RAKBANK was recognized for its continuous efforts in offering innovative products that understand consumer needs and in delivering highly effective payment solutions. 

Holders of the World MasterCard^® Credit Card enjoy up to 10% on domestic and international spends, 0% easy payment plans for 3, 6, 9 or 12 months at a wide range of participating merchants, and 0% interest on balance transfers for 3 months. The Card also extends up to 55 days interest free credit in addition to exclusive discounts on health insurance. 

The award ceremony was attended by two members of the RAKBANK Cards’ team, Rijesh Rajendran, Head of Card Products, and Pradeep Kamath, Business Intelligence Manager, who accepted the award on behalf of the Bank.

09/11/2015

03/11/2015

Bank Offers Financing Options for Off-Plan and Completed Properties

RAKBANK is pleased to announce its partnership with Dubai Properties to provide convenient home finance solutions for a selection of complete and off-plan properties in Dubai Properties’ portfolio of projects. Under the partnership, the Bank extends home finance for off-plan properties such as Mudon and completed projects including JBR, Executive Towers, Bay Square, The Villa and Remraam. 

RAKBANK offers affordable and flexible conventional as well as Sharia-compliant home finance solutions through AMAL at competitive rates to UAE nationals and expatriates, non-residents, and GCC nationals. To ensure utmost convenience, the Bank does not require a salary transfer from customers and is committed to minimum formalities and a fast approval process. It also has a team of specialist Home Finance advisors who are always available to provide knowledge, tools, and dedicated service to guide customers and ease the entire home buying process.

Ian Hodges, Head of Retail Banking at RAKBANK, said: “As a prominent bank in the retail space, we are always looking to bring our valued customers added choice and convenience to their banking relationship. Our partnership with Dubai Properties Group gives us the opportunity to support our customers who wish to finance property in prime locations in the UAE.”

Abdulla Abushabieb, Senior Executive Director, Customer Care and Government Relations, Dubai Properties said: "Our partnership with RAKBANK reflects Dubai Properties’ commitment to meeting the needs of the customers interested in home ownership in Dubai. Judging by the significant response to the launches of our new communities, we expect the high demand for high-quality and affordable homes in well located residential communities to continue. This partnership with RAKBANK will enable us to offer our customers a flexible range of home financing solutions that suit their individual needs and help them invest in their own future."

RAKBANK’s Home finance solutions extend up to 25 years with finance to value ratios of up to 80% for UAE nationals and 75% for expatriates for completed projects, and 50% for off-plan projects. They are also available to salaried and self-employed business customers, as well commission-based employees. In addition, RAKBANK facilitates the transfer of any existing finances that customers have with other banks to enable them to avail the attractive rates on offer. 

RAKBANK was one of the first banks to provide mortgage finance for freehold properties in 2004. As a result, it has the advantage of gaining extensive experience in the market by being an early player and employing a system of detailed credit appraisal.

*Disclaimer:  All loans are granted at sole discretion of RAKBANK. Standard Terms & Conditions apply. 

02/11/2015

RAKBANK today marked the UAE Flag Day with a flag raising ceremony at its headquarters in Ras Al Khaimah in the presence of senior management and Bank 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.

27/10/2015

Offering a customized banking experience and enhanced benefits to new and existing High Net Worth customers

RAKBANK recently introduced RAKelite Premium Banking, offering new and existing High Net Worth customers a more customized banking experience with enhanced lifestyle benefits and multiple privileges. RAKelite is the Bank’s latest Wealth Management offering and brings together all of the Bank’s premium solutions together under one umbrella.

Through RAKelite, RAKBANK ensures high net worth customers receive privileged treatment that enables them to get what they want out of their finances and their day-to-day lives. This includes a dedicated relationship manager, an exclusive RAKelite service centre in Burjuman Business Centre, private RAKelite teller counters across most RAKBANK branches, preferential exchange rates on US Dollar, Euro and GBP currencies, exclusive online and mobile banking services, and multiple lifestyle privileges.

“We recognize that the wealth management client base is always on the lookout for that ‘extra something,’ and customization of the banking experience is the roadmap to exceeding client expectations,” commented Peter England, RAKBANK’s CEO. “We also understand that each customer is unique and requires a personalized approach to meet their needs and aspirations based on their profile, objectives, and lifestyle”, he added.

RAKelite customers enjoy fast-track processing of all their banking requests within 2 hours of receipt. In addition, they are eligible for the Premium RAKBANK World MasterCard® Credit Card and the many benefits that accompany it, plus the RAKelite World MasterCard® Debit Card through which they can avail up to two complimentary valet services per month with Valtrans at select locations. They also get access to over 150 golf courses worldwide, 12 complimentary golf-coaching sessions a year, and a dedicated toll free number via 8004048.

RAKBANK’s Wealth Management model is centred on excellent customer service delivered by trusted and knowledgeable Relationship Managers who have earned the trust of clients.

25/10/2015

The National Bank of Ras al Khaimah (RAKBANK) today announced a consolidated net profit of AED 1,089.4 million for the first nine months of 2015, a modest increase of 1.5% over the corresponding period in 2014. The Group’s total income grew by 12.0% to AED 2,940.8 million during the nine months compared to the same period last year. This was a result of a year-on-year increase in net interest income and income from Islamic products net of distribution to depositors by 12.4% and non-interest income by 10.7%.
 
Operating expenses were up by 1.9% during the nine months compared to the previous year. As the Bank continues to grow its income base and focus on cost optimisation, the cost-to-income ratio dropped to 39.1% from 42.9% during the nine-month period last year. Consolidated operating profit before provision for impairment grew by 19.5% year-on-year to AED 1,791.3 million by 30 September 2015.
 
“The Bank continues to see growth momentum in business each quarter despite testing global and regional economic conditions,” commented Peter England, RAKBANK Chief Executive Officer. Net profit was up by AED 15.9 million compared to the corresponding period last year as total impairment charge for the first nine months of 2015 grew to AED 701.9 million.
 
“In addition to the more normalised levels of provisioning we have seen in the last 18 months, we have seen stress in some segments of our SME and Commercial lending activities which has pushed our provisioning higher. However the Bank’s focus on growing revenue, maintaining industry-leading net interest margins, and containing cost have allowed us to improve our net profit,” explained England.
 
Gross loans and advances increased by 15.5% year-on-year to AED 28.8 billion by the end of the first nine months of the year. Trade Finance volumes grew by 23.2% year-on-year and the Bank began its re-entry into the mid-corporate banking sector. Meanwhile, customer deposits were up by AED 2.1 billion to AED 26.7 billion during the first nine months of 2015 compared to 31 December 2014, of which Islamic deposits increased by AED 489.4 million.
 
“The Bank will continue to take advantage of market opportunities as we begin to enter into the second year of the Bank’s three-year strategic plan. We launched our second new credit card offering this year, the RAKBANK World MasterCard, in line with our commitment to offering convenient and rewarding banking solutions. Our focus remains on enhancing innovation in our existing businesses to deliver superior service and competitive financial products to customers, while maximizing value to shareholders,” said England.
 
“In the fourth quarter of this year, the Bank will unveil an improved premium offering under the RAKelite brand, a new market-leading Retail remittance offering, and various insurance products developed by the Bank’s latest subsidiary – RAK Insurance. In addition, the Bank will continue to invest in a growing its branch network alongside simple and convenient digital solutions,” continued England.
 
During 2015, total assets have grown by AED 4.1 billion to AED 39.0 billion as at 30 September 2015, mainly as a result of strong growth in Gross Loans and Advances.
 
The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 23.15%, comprising entirely of Tier 1 capital. This is against a current minimum total capital ratio of 12.0% prescribed by the Central Bank in the UAE. At the end of the quarter, the regulatory Eligible Liquid Assets Ratio stood at a healthy rate of 18.5% and Lending to Stable Resources Ratio was 87.3%.Total equity attributable to shareholders totalled AED 7.4 billion including the nine months’ profit.
 work with nearby schools and disadvantaged children to create a fun and educational environment where they can learn about everything from cookery and local wildlife to falconary and conservation.”

"With a firm commitment to inclusion in the workforce,” said Lamis Daoud, Head of Corporate Communications at RAKBANK, “initiatives like these are in line with our social responsibility strategy that supports people and centers for special needs and encourages financial independence across different segments of society. As the only centre for autistic students in the northern emirates, we’ve been strong supporters of the RAK Autism Centre since its inception in 2009, in various capacities, as part of our commitment to our home emirate of Ras al Khaimah and its people.” 

The Bank previously sponsored the 2014 RAK “Startup Weekend” facilitated by Young Arab Leaders to encourage entrepreneurial spirit among undergraduate students in Ras Al Khaimah. It also offers work-training positions for people with special needs. 

28/09/2015

RAKBANK aims to foster entrepreneurial spirit and financial independence among students at RAK Autism Centre.

With a diversified economy and a growing SME sector, the UAE has become an oasis of entrepreneurships and small businesses. Recognizing the importance of instilling entrepreneurship spirit from a young age and across all segments of society, RAKBANK held an event for RAK Autism Centre at Banyan Tree Al Wadi to promote basic financial literacy and independence through simple retail transactions.

Banyan Tree Al Wadi in Ras Al Khaimah hosted nine autistic students between the ages of nine and fifteen for a fun and interactive morning of preparing and decorating cookies and muffins. The Executive Chef of Banyan Tree Al Wadi and Banyan Tree Ras Al Khaimah Beach, Nugraha Wardhana, led the class along with four trainee Emirati chefs and the CSR committee. The students then headed to RAK Mall where they set up a kiosk and sold their baked goods, with proceeds going towards the RAK Autism Centre.

According to Aisha Al Shamsi, Headmaster at RAK Autism Centre, “extracurricular activities are crucial in helping improve the skills and behavior of students with special needs, and give students real-life experiences that teach them how good it feels to earn from the fruit of their labor.”

Axel Jarosch, General Manager of Banyan Tree Al Wadi & Banyan Tree Ras Al Khaimah Beach said; “Social and environmental responsibility has been close to Banyan Tree’s heart since the very beginning. We are committed to sustainability, not only in terms of the surrounding environment but also by helping to build a better society through a series of programmes and initivatives that engagage with the local community. We work with nearby schools and disadvantaged children to create a fun and educational environment where they can learn about everything from cookery and local wildlife to falconary and conservation."

"With a firm commitment to inclusion in the workforce,” said Lamis Daoud, Head of Corporate Communications at RAKBANK, “initiatives like these are in line with our social responsibility strategy that supports people and centers for special needs and encourages financial independence across different segments of society. As the only centre for autistic students in the northern emirates, we’ve been strong supporters of the RAK Autism Centre since its inception in 2009, in various capacities, as part of our commitment to our home emirate of Ras al Khaimah and its people.”

The Bank previously sponsored the 2014 RAK “Startup Weekend” facilitated by Young Arab Leaders to encourage entrepreneurial spirit among undergraduate students in Ras Al Khaimah. It also offers work-training positions for people with special needs.

11/09/2015