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

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

26/08/2015

RAKBANK celebrated today the many achievements of its female Emirati staff across all its branches and business functions ahead of Emirati Women’s Day on August 28. Earlier this year, August 28 was declared Emirati Women’s Day to mark the creation of the General Women’s Union (GWU) in 1975, and is considered a chance to celebrate Emirati women’s achievements since the group was founded.

Recognizing that a successful business must be run by a team of both men and women, RAKBANK promotes an inclusive environment whereby employees of both genders have equal opportunities to achieve personal success and contribute to the growth of the business. In fact, 48% of the Bank’s employees are women, of which 60% are Emirati women. 

According to Enas Hassan, District Branch Manager at RAKBANK, "the perception of women’s roles in finance has been moving away from the notion that finance is a male-dominated industry due in part to the strong support from the Central Bank and other authorities." According to a poll by YouGov commissioned by RAKBANK in December 2014, 12% of Emirati woman choose banking as their dream job. 
  
"Personally, I feel that we as women have a responsibility to support other women in the workforce by taking the time to train and mentor them and by highlighting gender diversity as an asset and a requirement for a more dynamic team culture," added Enas.  

Aysha Al Ali, a RAKBANK Phone Banking Manager based in Ras al Khaimah, leads a team of 108 female Emirati phone bankers in the Bank’s headquarters in Ras al Khaimah. Over 60% of her team members are part-timers who take advantage of flexible working hours. The team handles 40% of the call volumes for RAKBANK and is an integral part of the service infrastructure.

According to Aysha Al Ali, Phone Banking Manager at RAKBANK, “the key element to our success is to choose the right employee for each task, work hard to meet and exceed customer expectations, and make the work environment pleasant to all. With this attitude and work ethic, we’ve managed to set an example of successful teamwork at the Bank.”

This year, RAKBANK nominated both Enas Hassan and Aysha Yousef Al Ali for the 2015 Emirates Institute for Banking and Financial Studies (EIBFS) Leadership Development Program at Darden Business School in Virginia, USA. The program was held over the course of three weeks and enables the participants to broaden their perception of bank management, improve their ability to take decisions and think strategically.

In addition, the Bank sponsored Ameera Mohammed Al Haranki, a national student from Ras Al Khaimah, to take part in the ‘2041 International Antarctic Expedition 2015’ (IAE 2015) as part of the Bank’s CSR initiatives. The life-changing expedition consisted of a two-week journey in the island continent involving team-building exercises, talks on climate change and global warming. The delegation of young environmental leaders learned how they can prevent global warming in their respective regions and how they can better incorporate these strategies into their work environments and communities.

10/08/2015

Credit Card reward programme includes an all-inclusive family holiday package to Paris, trips to motor racing in Singapore and international tennis in New York

Dubai, United Arab Emirates, 11 August 2015: Have you ever seen the Eiffel Tower in Paris? What about motor racing in Singapore that happens every year? Or the International tennis in New York? It all seems like a dream away but with RAKBANK MasterCard Credit Card, these dreams can become a reality. When making a purchase on the card, customers are given the opportunity to select the reward experience of their choice on the Bank’s microsite: https://rakbank.ae/wps/portal/campaign/home. Customers can win several prizes to travel across the world, enjoying some of the most remarkable sporting events, concerts and family holidays in popular destinations.

Eleven winners have recently been announced for the second draw of the ‘Dream it. Live it.’ Programme, where three customers and their families have won an all-expense paid trip to Paris, five customers won a trip to experience the Singapore motor race, and three customers will enjoy the upcoming international tennis Event in New York.

One of the winners, Carolyn Deed, commented: “I never thought I could win an all-expense paid trip to watch the tennis live in New York City. I don’t usually win prizes, so I’m still in complete shock! I’m a huge tennis fan, so I can’t wait for September.”

Roshin Bhaskar, another Dream It. Live It winner, said: “When I first heard I won an all-expenses paid trip to Paris, I could not be happier! I am so delighted that I can share this experience with my family.”

“‘Dream it. Live it’ is a unique reward programme we’ve created for our customers to enjoy a once in a lifetime memorable experience with their friends and family. Cardholders enter the draw in October to win tickets to attend the upcoming International Film Festival and experience New Years in New York” said Banali Malhotra, Head of Marketing.

RAKBANK “Dream It and Live It” offers a chance for credit card holders spending more than AED 500 to enter the quarterly draws. Through the dedicated Bank’s website (www.rakbank.ae), cardholders can choose to put all their chances in the draw with rewards which include flights and hotel stays to attend international events such as ODI Cricket Finals in Melbourne, The BRIT Awards 2015 in London, The UEFA Champions League Final 2015 in Berlin, T20 Cricket in India, Motor Racing in Singapore, a New Year Experience in New York, a family holiday in Paris or the Jazz Festival in Dubai.

28/07/2015

58% of the UAE values cashback most as a credit card reward

The most appealing credit card rewards: 58% cashback, 16% easy payment plans, 14% travel miles
76% prefer cashback over 24% opting for travel miles
62% of 35-39 year olds are more inclined to sign up for credit cards for the rewards offered
While travelling, 50% use credit cards, 31% cash and 14% debit card
Over a third of respondents have one credit card and 26% have two
78% would consider consolidating their debt onto one credit card with 10% cashback

RAKBANK announced the launch of its World MasterCard^® Credit Card, its latest credit card which offers up to 10%* cashback on travel, hotel dining, and supermarket spends plus a host of dining and lifestyle privileges, travel and insurance benefits, and convenient easy payment plans.

Prior to the launch, RAKBANK asked over 1,000 participants in conjunction with YouGov what they find most appealing as credit cardholders and cashback came out on top for both genders and all ages, while 16% chose easy payment plans followed by air miles, discounts on movie tickets and retailer tie-ups with 14%, 8%, and 5% respectively. Dubai has the world's busiest airport and its residents have a penchant for travelling, yet 76% prefer cashback to air miles when given a choice between the two because of the flexibility of using cashback for flight purchase even during high season

“RAKBANK was the first in the country to offer a permanent ‘cashback’ feature back in 2006 on its credit and debit cards,” said Ian Hodges, Head of Retail Banking at RAKBANK. “Following its success and the positive customer feedback, we launched a suite of conventional and Sharia-compliant credit cards since then that continue to offer cashback, the latest of which is the Bank’s first premium Credit Card - the RAKBANK World MasterCard^® Credit Card.”

The survey also found that higher earners are more interested in added perks and rewards, with 60% of the higher income brackets** indicating interest in added extras. In addition to up to 10% cashback on travel spends such as flights and hotels, World Credit cardholders enjoy 50% cashback on movie tickets at cinemas worldwide, global airport lounge access, hotel privileges, car rental offers and more. The card also extends 0% easy payment plans for 3, 6, 9 or 12 months at a wide range of participating merchants, as well as 0% interest on balance transfer for 3 months.

Over a third of survey respondents have one credit card with a reward program, and 26% have two. Men tend to have more credit cards than women and the older demographic boasts the most in their wallet, with 10% of people over 40 years of age having four or more credit cards. As people hold more credit cards, 78% of respondents would consider consolidating their debt onto one card that has the added benefit of 10% cashback.

The World MasterCard^® Credit Card is the second credit card launched by RAKBANK this year following the co-branded KALYAN JEWELLERS MasterCard Credit Card, which is the first credit card to offer ‘Goldback’ or loyalty points that are earned at a rate of up to 7% and can be redeemed at any Kalyan Jewellers showrooms in the UAE in the form of jewellery.

*terms and conditions apply
**average NET household income

26/07/2015

The National Bank of Ras al Khaimah (RAKBANK) today announced a consolidated net profit of AED 716.2 million for the half-year ended 30 June 2015. The Group’s total income grew by 12.2% to AED 1.9 billion during the half-year compared to the same period last year as a result of an increase of 12.9% in net interest income and 9.8% in non-interest income.

Operating expenses inched up by 3.0% during the first six months of the year compared to the previous year. However cost-to-income ratio dropped to 40.0% from 43.6% as the Bank continues to grow its income base and focus on cost optimisation. The consolidated operating profit before provision for impairment jumped by 19.2% to AED 1.1 billion while the total impairment charge for the half year stood at AED 426.9 million compared to AED 258.4 million in the first half of 2014.

“Despite rising competition in the UAE banking market, the Group continues to record further improvement in year-on-year operating income and expense ratios,” said Peter England, RAKBANK Chief Executive Officer. “Gross loans and advances increased by 16.0% year-on-year to AED 27.7 billion by the end of the first half of 2015 across most of the Bank’s Retail and Business Banking portfolios. SME and Commercial lending under our Business Banking segment, which has been a focus for the Bank since early 2014, recorded a jump of 115.0% in gross loans and advances year-on-year. As a result of this growth in overall lending volumes, our impairment charge was higher than what we saw in the previous year however our non-performing loans remained steady at 2.7%,” explained England.

Towards the end of May 2015, RAKBANK acquired 79.23% of Ras Al Khaimah National Insurance Company P.S.C. (RAK Insurance) to become the largest shareholder in the insurance provider. “With a controlling stake in RAK Insurance, we look forward to collaborate on developing and providing insurance products to enhance revenue and market share and ensure that customers enjoy a more wholesome experience,” said England.

Total assets grew by AED 3.2 billion compared to 31 December 2014 mainly as a result of strong growth in gross loans and advances which were up by AED 1.9 billion to AED 27.7 billion and the consolidation of RAK Insurance amounting to AED 615.8 million. Total assets stood at AED 38.1 billion on 30 June 2015. Customer deposits grew by AED 1.4 billion to AED 26.1 billion during the first half of 2015 compared to 31 December 2014.

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 23.7%, 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 liquid assets ratio was 18.6% and advances to stable resources ratio was 87.7%. Total shareholder’s equity totalled AED 7 billion including six months’ profit.

“Looking ahead, we will continue to aggressively grow the bank’s top line in the second half of the year while strengthening our branch and ATM network across the country and launching additional digital banking solutions,” added England. The Bank is constantly working to find new ways to improve the customer experience through innovation, service excellence, and customer convenience. During the quarter, RAKBANK was recognized by The Asian Banker as Best Mobile Banking Initiative in the Middle East for 2014 for MobileCash card-less cash withdrawal solution and Best SME Bank in the Middle East.

08/06/2015

RAKBANK today hosted a workshop with leading conservationist and vet, Dr Anne-Lise Chaber and youth Emirati environmentalist Ameera Al Haranki, ahead of a Dubai British School conservation expedition to South Africa taking place this summer. The expedition team and 40 Year 10 GCSE geographers attended the RAKBANK workshop, promoting conservation awareness and sustainability both at home, in South Africa and worldwide. The two spokespeople were Dr Anne-Lise Chaber, from The Wildlife Organisation, who heads up the RAKBANK funded Wildlife Project, and environmental role model, Ameera Al Haranki, giving insights from her RAKBANK sponsored two week environmental expedition to the Antarctic earlier this year.

Financed by their own fundraising, four sixth form student, studying A-Levels, and a Geography teacher will be working with local communities and the South African Government to manage and conserve the country’s wildlife. The project will take place in one of the largest game reserves in Africa, the Kruger National Park, and Sodwana Bay, a narrow strip of sand dunes located on the east coast of South Africa.

Through this workshop RAKBANK aims to inspire not only the geographers participating in the expedition and their peer group but the next generation to get involved with environmental projects and preserve the UAE’s landscape.

07/06/2014

RAKBANK is pleased to announce that it received ministerial approval to lift its foreign ownership level to 40% following the decision to do so at the Extraordinary General Meeting held on 8th May 2014. The new limit has been adjusted by Abu Dhabi Securities Exchange (ADX) last Thursday 5 June.

Commenting on the limit increase, Peter England, RAKBANK’s CEO, said that the Bank had been running very close to the old 20% limit for some months now. Foreign interest has picked up very strongly, he explained, as a result of the UAE's inclusion in the MSCI Emerging markets index as well as the Bank’s active engagement with foreign investors in recent months.

“We most probably would have seen foreign trades being rejected in the near future had the limit not been increased,” said England. “Investors are very keen to hold RAKBANK stock due to its valuations considering that the Bank has one of the highest ROA, ROE, and Tier 1 Capital ratio of any bank in the region.”

About RAKBANK

RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country’s oldest local financial institutions and today one of its fastest growing and most dynamic banks. According to The Banker's Top 100 Bank Rankings for 2013, RAKBANK is the 1st in the Arab World by Return on Assets and 5th in the Arab World by Return on Capital.

RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels.

01/06/2015

RAKBANK was awarded the Best Mobile Banking Initiative and Best SME Bank in the Middle East for MobileCash, its cardless ATM withdrawal and RAKFinance, its small business lending offering.

Using MobileCash, customers can send and withdraw money from the ATM without the need for a debit card. By the end of 2014, monthly transactions grew by almost 200%, with the total value of withdrawals reaching upward of AED 30 million ($8.2m)

The Operating Profit of RAKFinance grew 22% in 2014 while its traditional Business Banking loan book more than doubled during the year.

Dubai, May xx 2015 — RAKBANK won the award for the Best Mobile Banking Initiative and Best SME Bank in the Middle East for the year 2014 at The Asian Banker’s 2nd Annual Middle East and Africa Awards Ceremony. The ceremony was held at the Ritz Carlton, DIFC, Dubai on May 27th 2015.

RAKBANK launched MobileCash in mid-2014, its cardless money withdrawal service. Using MobileCash, customers can send money to a beneficiary who can withdraw it from an ATM without the need for a debit card. Customers can simply log into their mobile banking application and select the MobileCash option for self or beneficiary followed by the amount they wish to send. The beneficiary can then withdraw cash from the nearest RAKBANK ATM using only the one-time pin that is generated and sent through SMS.

Keeping customer awareness and engagement at the forefront, the Bank ran an extensive advertising campaign, resulting in an exponential increase in the number of transactions month-on-month since the launch of the service. In the first few months of operations, monthly transactions grew by almost 200%, with the total value of withdrawals exceeding AED 30 million ($8.2m).

On the other hand, the SME segment’s operating profit grew 22% in 2014 on the back of strong growth in RAKFinance (the Bank’s collateral-free lending product) as well as significant growth in the Bank’s traditional Trade Finance and Working Capital lines. The SME business contributes 30% to the total revenue of the bank, offering customers collateral free business loans and innovative trade solutions. The bank introduced an asset based financing product in 2014, further increasing the bank market share in the SME space, while helping clients meet both long and short term financial need of their businesses.

Award-winning banks and vendors attended the gala event that recognised their efforts in bringing superior products and services to their customers. The Asian Banker’s Middle East and Africa Awards are acknowledged by the financial services industry as the highest possible accolade available to professionals and banks in the industry. Over 100 institutions from the Middle East and Africa were evaluated across 30 different countries. A stringent three-month evaluation process based on a balanced and transparent scorecard has been used to determine the winners.

United Arab Emirates, 28 May 2015: RAKBANK today announced the acquisition of 79.23% stake Ras Al Khaimah National Insurance Company P.S.C. (RAK Insurance) following the purchase of a total of 87,154,981 shares at AED 3.64 per share through a tender offer. The acquisition enables RAKBANK to become the largest shareholder in the insurance provider and is in line with the Bank’s strategy to become a broad-based financial services company.

H.E. Mohammad Omran Alshamsi, RAKBANK Chairman, commented: “The acquisition is consistent with the Bank’s key strategic objective of strengthening market share and I am confident that this acquisition will deliver long-term value to all stakeholders.”

Peter England, RAKBANK CEO, said: “RAK Insurance is a successful and well reputed insurance provider and we look forward to growing our collective businesses in a very close partnership and to jointly develop a range of insurance products over time. We see a tremendous opportunity for growth in the Bank’s business by diversifying into complementary industries such as insurance that enhance revenue and market share and ensure that customers enjoy a more wholesome experience.”

Founded in 1974, RAK Insurance is a successful insurance provider listed on the Abu Dhabi Securities Exchange (ADX) and has a full license to issue conventional general and life policies.

Andrew Smith, RAK Insurance CEO, said: “I am delighted that we have been able to partner with RAKBANK through a share acquisition. Developing the bancassurance channel, RAK Insurance will be able to further strengthen its client’s relations and help provide the bank with unique and innovative products and services. This is an exciting opportunity for both parties and I look forward to continued success.”

With a total capital ratio of 24.2% by end of March 31 2015, RAKBANK funded the entire acquisition through existing resources. Whilst RAK Insurance will become the Bank’s preferred insurance partner, RAKBANK will continue to bring to its customers a range of insurance products from other providers as per its current arrangements to ensure that customers have choice from a wide range of products to suit their needs. The Bank has 35 branches and over 200 ATMs throughout the UAE, as well as Telephone, Online, and Mobile banking solutions.

19/05/2015

Gold is often perceived as an investment haven due to its enduring ability to retain its value and mitigate the impact of inflation. It is the world’s oldest international currency and has proved to be one of the leading asset classes of the 21st century. According to a study by Rhodes Precious Metals Consultancy commissioned by RAKBANK, gold has produced an average return of almost 13% per annum since 2001, easily outperforming US equities which grew at an annual average of just 6% over the same period. In the UAE, the size of Dubai’s physical gold market has grown from just under $5 billion in 2002 to over $55 billion in 2014, with the emirate acting as the logistical bridge connecting the world’s major physical gold markets.

To provide customers with the opportunity to diversify their investment portfolio, RAKBANK launched RAKGoldInvest, an investment tool that allows High Net Worth customers to invest in gold electronically whilst saving them the hassle of storing and moving the gold. Customers can buy, sell, or hold their investments 24/7 via an online trading platform on the Bank’s corporate website, and can convert their RAKGoldInvest holdings to physical gold bars at any time.

This is the second gold-themed product launched by RAKBANK in 2015. In January, RAKBANK partnered with Kalyan Jewellers to launch a co-branded Credit Card. The RAKBANK KALYAN JEWELLERS MasterCard Credit Card, which is accepted globally for purchases and cash withdrawals, offers ‘Goldback’ loyalty points that are earned at a rate of up to 7% and can be redeemed at any Kalyan Jewellers outlets in the UAE in the form of jewellery. To ensure customer convenience, the card also offers a 0% easy payment plan on diamond and gold jewellery purchases.

“RAKBANK recognizes the strong appeal of gold investments especially among Asian communities who still largely consider them to be the ultimate store of value even with the introduction of modern financial instruments and asset classes,” said Peter England, RAKBANK CEO. In fact, demand for gold was virtually exclusive to Asia before the Global Financial Crisis in 2008 but since then there’s been a significant move into gold worldwide as an alternative hard asset to traditional paper investments such as equities and bonds.*

Gold’s purchasing power grew by 10.72% in USD terms between 2001 and 2014 compared to a 2.27% increase in US Consumer Prices. The proof of gold’s enduring ability to retain its value and mitigate the impact of inflation is also highlighted by an increase of more than 43% in the yellow metal’s purchasing power since 2001 compared to that of crude oil.*

“With the launch of RAKGoldInvest and the Kalyan co-branded credit card, RAKBANK offers flexible, convenient, and simple gold-themed products that aim to diversify customers’ investment portfolio,” added England.

Existing RAKBANK customers can apply for RAKGoldInvest online through the Bank’s Online Banking platform while new bank customers are invited to visit one of the bank’s 35 branches in the UAE. To learn more about RAKGoldInvest, kindly get in touch with RAKBANK on 04 2130000.

12/05/2015

22/04/2015

RAKBANK today announced a net profit of AED 362.2 million for the three months ended 31 March 2015. Gross loans and advances grew by 15.8% year-on-year and stood at AED 26.7 billion by the end of the quarter.

The 8.3% increase in profit over same period last year reflects a year-on-year improvement in operating income and improved expense ratios. Total Operating Income for the three months ended March 2015 increased by 13.1% year-on-year to AED 932.3 million due to a rise in net interest income. Non-interest income was up by 7.2% to AED 198.8 million compared to the same period last year mainly due to an increase of 11.4% in fees and commission income.

During the first quarter the Bank continued to invest in its distribution network, product development, and electronic solutions. In addition to opening a new branch in Al Ras area and launching the KALYAN JEWELLERS co-branded MasterCard credit card, RAKBANK was recently recognized during the G-Summit 2015 as one of the very few banks in the world to provide authenticated web chat service to customers on its corporate website and its Online Banking platform. As a result of these investments and a rise in employment costs to support business growth, operating expenses increased by 4.8% year-on-year to AED 377.0 million by the end of the first three months of 2015. Nevertheless, Cost-to-Income ratio dropped to 40.4% as at 31 March 2015 from 43.6% as at 31 March 2014.

“Our first quarter financial results reflect stable earnings, healthy liquidity, and a strong capital base,” said Peter England, RAKBANK CEO. “The key contributing factor is growth in gross loans and advances, which were up by AED 863.9 million year-to-date as a result of strong signs of growth during the quarter across most business units especially RAKFinance, Auto Loans, and Business Banking. Traditional working capital and trade loans to the SME and Commercial Banking segment grew by around 130% year-on-year and our Trade Finance portfolio surpassed AED 2 billion.”

The total impairment charge for the three months increased by AED 62.7 million year-on-year to AED 193.1 million as the provision coverage ratio closed at 84.6%. “This rise is largely due to an increase in provisions in Personal and RAKFinance loans, the overall growth in our loan book, and the Bank’s commitment to a long-term sustainable performance as we continue to take further precautionary provisions on our restructured book. That being said, non-performing loans (NPL) and net credit loss (NCL) remain very reasonable given the fact that we are largely an unsecured lender,” explained England. As of 31 March 2015, NPL stood at 2.7% of the gross loan portfolio and the annualized NCL to average loans and advances closed at 2.98%.

Total assets grew by 2.5 billion year to date as a result of loans and advances and deposits with other banks. This includes the un-deployed funds from the Bank’s own Euro Medium Term Note (EMTN) which raised a further USD 300 million in February 2015 by re-opening the June 2019 bond under the Bank’s USD 1 billion EMTN programme. In addition to the ordinary growth in assets, the Bank received AED 3.7 billion in funds from a Business Banking customer on 31 March 2015, which was parked with other banks on an overnight basis. As a result, total assets stood at AED 41.0 billion by the end of the quarter.

Customer deposits were up by AED 1.5 billion year to date on the back of an increase in current and saving accounts as well as Islamic banking deposits, which grew by 11.5% to AED 2.9 billion. Taking into account the AED 3.7 billion funds received from a Business Banking customer on 31 March 2015, total deposits stood at AED 29.9 billion by the end of the quarter.

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 24.2% against a current minimum total capital ratio of 12% prescribed by the UAE Central Bank. At the end of the quarter, the regulatory liquid assets ratio (LAR) was 16.6% AED and lending to stable resources ratio (LSRR) was 75.1%. Total shareholder’s equity totaled AED 7.5 billion and includes three months profit for the year 2015 and undistributed dividend of AED 838.1 million for the year 2014.

08/04/2015

Shareholders elect board members and approve 50 fils cash dividend for 2014

Ras Al Khaimah, UAE – 9 April 2015: RAKBANK successfully concluded its Annual General Meeting today at its headquarters in Ras Al Khaimah. During the AGM, shareholders approved the distribution of a cash dividend of 50 percent (50 fils per share) for the financial year ending 31 December 2014.

RAKBANK’s ordinary annual general meeting proceeded to elect the Board of Directors, which welcomed three new members this year. For the financial years 2015-2017, RAKBANK’s Board of Directors consists of:

• H.E. Mohammad Omran Alshamsi
• H.E. Engr. Sheikh Salem Bin Sultan Al Qasimi
• Mr. Ahmed Essa Al Naeem
• Mr. Hamad Abdulaziz Al Sagar
• Mr. Salem Ali Al Sharhan
• Mr. Yousuf Obaid Al Nuaimi
• Mr. Rajan Khetarpal
• Mr. Allan Griffiths

Following the election, the directors met and unanimously elected H.E. Mohammad Omran Alshamsi as the new RAKBANK Chairman. Commenting on his appointment, H.E. Mohammad Omran Alshamsi, former CEO and Chairman of Etisalat, said: “I am pleased to be named Chairman of one of the most dynamic UAE banks. I appreciate the trust and confidence placed in me by the shareholders and my fellow board members.”

From his side, RAKBANK’s CEO, Peter England, said: “I would like to take this opportunity to welcome H.E. Mohammad Omran Alshamsi as the new Chairman and my team and I look forward to his guidance and counsel as we embark on the next phase of the bank’s transformation and growth.

I would also to thank H.E. Sheikh Omar Bin Saqr Al Qasimi for his contribution to the Bank. H.E. Sheikh Omar Bin Saqr Al Qasimi was elected as the Bank’s Chairman in 2006 and has served in this role until today. Under his supervision, the Bank saw its net profit rise from AED 258.8 million in 2006 to AED 1,454.6 million by end of 2014, while assets quadrupled from AED 8.8 billion in 2006 to AED 34.8 billion at the end of last year.”

“In 2014, RAKBANK once again recorded solid top line performance as a result of growth in just about all of our key business lines,” added England. “I look forward to working with our new Board as the Bank continues to explore new opportunities for revenue growth across Retail and Business Banking, while taking advantage of new opportunities that aim to grow our presence in the UAE and increase market share.”

The AGM also approved the financial statements for the year ending December 31, 2014 and the appointment of PricewaterhouseCoopers as the Bank’s external auditors for the financial year 2015.

04/04/2015

Dubai, UAE: RAKBANK is pleased to announce that as part of its CSR programme for the year, the Bank sponsored Ameera Mohammed Al Haranki, a 22 year old national student from Ras Al Khaimah, to take part in the ‘2041 International Antarctic Expedition 2015’ (IAE 2015). The life-changing expedition consisted of a two-week journey in the island continent involving team-building exercises, talks on climate change and global warming. The delegation of young environmental leaders learned how they can prevent global warming in their respective regions and how they can better incorporate these strategies into their work environments and communities.

Ameera, currently studying IT security at HCT RAK commented: “I’m very interested in environmental conservation and spreading the awareness of how important it is to protect our planet earth. The expedition to Antarctica was an eye-opening experience in terms of shedding light on the repercussions of global warming. This experience will definitely go a long way in helping me pursue a career as an aspiring environmentalist.”

The expedition participants met at the foot of the Andes Mountains in Ushuaia, Argentina and journeyed by ship to the last wilderness on earth, the Antarctic. The 2041 expedition, founded by Robert Swan OBE, the first person in history to walk to both the North and South Poles, annually brings together a group of present and future leaders who want to take responsibility to build resilient communities and seek change for sustainability. They are taught lessons by global experts on today’s issues of climate change and energy use and how they affect us worldwide, along with life lessons on leadership, team building, and unique wildlife experiences.

Sponsoring this expedition is in line with RAKBANK’s commitment to help conserve the environment. The Bank also supports a wildlife research and conservation project in its home emirate of Ras Al Khaimah. Led by Wildlife Consultant Organization, the project consists of wildlife research and public education by a team of veterinarians, biologists, herpetologists and ornithologists, as well as volunteers and university students.