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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Remit Money to India and Enter a Lucky Draw!

RAKBANK is pleased to announce the expansion of its remittance service, RAKMoneyTransfer, which is first in the UAE to offer a 60 seconds money transfer to India through a network of 26 major banks including Axis Bank, ICICI Bank and more. Not only is RAKMoneyTransfer a trustworthy, secure and fast way of transferring money, it also offers attractive exchange rates and no deductions for the beneficiary from the banks in India.

Furthermore, Bank customers can conveniently transfer money from the comfort of their own home through RAKBANK’s online banking platform that offers 24/7 access and 365 days credit. Customers can transfer up to 200,000 Indian Rupees to any beneficiary within just 60 seconds to the 26 major banks in India, without the need of visiting a branch. If the amount is transferred to any other bank in India, then the transaction process takes up to 60 minutes.   

RAKMoneyTransfer also offers customers the opportunity to enter a draw for a chance to win a flight back home to India. When a customer remits money to India, worth minimum of AED 500, he automatically enters a draw where 10 lucky winners get a chance to fly home to India. The offer is valid until 31st October 2016. 

Back in February 2016, RAKBANK launched its real-time money remittance service, RAKMoneyTransfer. The Bank now plans to expand the remittance reach to other countries such as Philippines, Pakistan, Bangladesh, Nepal and Sri Lanka, and introduce additional service facilities on an on-going basis.

For more information on RAKMoneyTransfer and for a detailed list of the partnered banks in India, please click here.

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H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, inaugurated today RAKBANK’s new premises for its Al Dhait and Al Kharan branches in Ras Al Khaimah. 

Attending the official inauguration were H.H. Sheikh Omar bin Saqr Al Qasimi, H.E. Mohamed Omran Alshamsi, Chairman of RAKBANK, a number of RAKBANK board members, Peter England, CEO of RAKBANK, Saleh Ali Saleh, Director of RAK Business, Emad Hittini, Director of Branch Distribution, Naji Mohamed, Head of RAK Branches and RAKBANK management members. 

The opening of the new premises for the Al Dhait and Al Kharan branches reflects RAKBANK’s recognition of the rising emirate of Ras Al Khaimah as one of the fastest-growing and the investment destination of choice for individuals and businesses in the UAE. RAKBANK is looking to explore and develop major Corporate and Individual relationships in Ras Al Khaimah, thereby allowing our customers even better access to the Bank's convenient and comprehensive Conventional and Sharia-compliant Islamic Banking services and products.

Speaking on the occasion H.E. Mohamed Omran Alshamsi, Chairman of RAKBANK commented: “It is with immense pleasure and a great honor to welcome H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah at our Al Dhait and Al Kharan branches. We believe in the growth potential and business opportunities in Ras Al Khaimah and we are committed to providing the best banking services to our customers in the emirate.”

Peter England, Chief Executive Officer of RAKBANK, said: “Our accomplishments are only made possible by the continued support of H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah. We will continue to deliver the best-of-class products and services, bringing more innovation and convenience to constantly improve the customer experience in Ras Al Khaimah and the UAE.”

Currently RAKBANK operates seven branches in Ras Al Khaimah located in Al Dhait, Al Kharan, Al Madinah, Al Munai, Al Rams, Al Nakheel, and Shaam. The Bank offers its Conventional and Sharia-compliant Islamic Banking services and products throughout its network of 35 branches across the UAE.   

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RAKBANK today launched – “Home in One” – a first of its kind Home Loan facility in the GCC that not only offers customers competitive interest rates that start at 3.49% per year, but also helps them pay off their mortgage loan much sooner.

Home in One is a Combo product that brings together a customer’s current account and mortgage loan, making it easier to manage, with a range of benefits. 

Speaking at the launch of Home in One, Peter England, RAKBANK CEO said: “RAKBANK is always innovating and revolutionizing the financial landscape in UAE. The launch of Home in One provides our customers a mortgage facility which is flexible, pays interest and reduces the loan tenor.” 

All a customer needs to do is to maintain a balance in their Home in One account. The higher the account balance, the less interest customers pay on their mortgage facility every month. With every deposit the customer makes, it lowers their interest payments thereby reducing their loan tenor. If the customer maintains additional funds in their account, there are effectively no fixed repayments.   

The Home in One account also comes with maximum flexibility so customers can use it for all their daily banking needs like transferring their salary, maintaining their savings, withdrawing cash, paying their bills with all the facilities of a current account such as Debit Card, cheque book, and access to Online and Mobile banking applications. 

UAE residents, both salaried and self-employed, are eligible to apply for the Home in One facility to purchase or refinance residential property.

For further details on Home in One, please click here and you can also use the Home in One Calculator to assess your potential interest savings compared to a traditional mortgage facility. 

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The National Bank of Ras Al-Khaimah (RAKBANK) today announced a consolidated net profit of AED 445.5 million for the half-year ended 30 June 2016. The Group’s operating profit increased by 12.0% to AED 1.3 billion as a result of an increase in total income by 3.2% and a reduction in operating cost by 10.0%. The total income grew due to an increase in non-interest income by 22.3% partly offset by a reduction in net interest income and net income from Islamic financing by 2.2%. 

Operating expenses declined by 10.0% during the first six months of the year compared to the previous year due to various cost saving initiatives taken by the Group. Furthermore, the Group improved its Cost-to-Income ratio to 34.9% compared to 40.0% in the first half of 2015, as it maintained its focus on cost optimization. The consolidated operating profit before provision for impairment increased by 12.0% to AED 1.3 billion, while the total provisions for impairment for the first half increased to 835.4 million.  

“The Group continues to record further improvement in year-on-year operating income and expense ratios. The marginal drop in net interest income was due to softening demand for SME loans and an increase in funding cost for the period which was not passed on to customers. With regard to strategy, our re-entry into wholesale business banking has opened the door for an opportunity in treasury business to work with our Wholesale Banking clients as well as Business Banking clients,” said Peter England, RAKBANK Chief Executive Officer. “Gross loans and advances increased by 5.5% year-on-year to AED 29.2 billion by the end of the first half of 2016 mainly in the Bank’s Wholesale Banking portfolio which grew by 148% to over AED 4 billion,” explained England.

Total assets grew by AED 345.0 million compared to 31 December 2015 to AED 40.9 billion mainly as a result of growth in gross loans and advances which were up by AED 683.4 million to AED 29.2 billion. Customer deposits grew by AED 183.8 million to AED 28.0 billion during the first half of 2016.

The Bank’s capital adequacy ratio as per Basel II requirement at the end of the second quarter is 24.1%, 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 this quarter, the regulatory liquid assets ratio was 18.3% and advances to stable resources ratio was 86.8%. Total equity totalled AED 7.5 billion including six months’ profit.

“Looking ahead, we expect provisions to settle down in the second half of the year as the trends we are currently seeing indicate that the worst is over for our Business banking portfolio. We will continue with our strategy of diversifying our loan book, and focus on product innovation while strengthening our branch and ATM network across the country and launching additional digital banking solutions,” said Peter England, RAKBANK Chief Executive Officer. 

During the first half of this year, RAKBANK was the first bank in the UAE to receive the ISO 9001:2015 version certificate for its continuous commitment to quality management within the Branches and Inbound Contact Centre. The Bank was also recognized by the Asian Banker as Best Internet Banking Product of the Year Award in the Middle East 2016 for the web chat authentication initiative.

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RAKBANK is pleased to announce its partnership with Entrepreneurs' Organization (EO) UAE as an exclusive banking partner. This strategic alliance offers an opportunity for the Bank and members of the EO UAE to interact and share best business practices through various forums organized locally.

Currently SMEs are key drivers of the UAE’s economy and account for more than 94% of total number of companies operating in the country. According to the National Agenda of the UAE Vision 2021, SMEs contribute around 60% of the country’s GDP and is projected to reach 70% within the next six years.  

Dhiraj Kunwar, Director of Business Banking at RAKBANK, said: “Through this alliance, RAKBANK reinforces its commitment to the growth and development of the SME sector in the UAE. Our partnership with EO UAE would help foster the growth of entrepreneurial spirit across the country.”

“RAKBANK is one of the leading SME Banks in the country and EO is delighted to partner with RAKBANK and by this association, we would be able to create value for each other”, said Bilal Alibhai, Integration Chair and President-Elect of the Entrepreneurs' Organization.

Entrepreneurs' Organization (EO) is a global community of entrepreneurs founded in 1987 with more than 11,000 plus members worldwide and with 147 chapters in 48 countries. The organization helps leading entrepreneurs learn and grow through peer to peer lending. The UAE chapter of EO has 80 members.

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RAKBANK recently signed a Memorandum of Understanding (MoU) with Xpress Money in its headquarters in Dubai Silicon Oasis to facilitate cooperation in the area of money transfer between the two parties. Through this partnership, RAKBANK customers will benefit from Xpress Money’s convenient remittance services and its strong presence in 160 countries across 180,000 locations. The MoU was signed by Vikas Suri, Managing Director of Treasury at RAKBANK, Sudhesh Giriyan, Chief Operating Officer at Xpress Money, alongside Anand Kadakol, Director of Retail Payments at RAKBANK, and other members of management from the Bank and Xpress Money.

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RAKBANK is pleased to introduce a new and innovative approach for credit card sourcing by empowering its Direct Sales Agents (DSAs) with a Tablet PC preloaded with a bespoke App and an Emirates ID reader. Unlike the conventional approach of banks using tablets at branches, RAKBANK is addressing customer pain points that arise during the paper-based application process.

With customer convenience in mind, the Tablet App was created to reduce the processing time for credit card applications. Using the App, RAKBANK agents can prefill a substantial part of the digitized application form by inserting customer’s Emirates ID card into the reader attached to the tablet. Collection of documents is also very simple, as the Bank staff can use the camera on the tablet to take photos and upload them instantly. The digital form and necessary documents are electronically shared with various departments within the Bank to issue the credit card. 

As soon as an application is submitted, the customer is sent an SMS as well as an email with the reference number for the application. The new digitally enhanced approach ensures that the entire process is completed smoothly without the need for any follow up by the customer. In addition, the Tablet App includes useful features such as product calculators, easy access to product information, performance tracking dashboards and more, and serves as a smart tool that helps agents better assist customers.

This new initiative is in line with RAKBANK’s commitment to offering superior customer service across its touch-points. It also falls under the Bank’s sustainability framework on waste management and is designed to significantly reduce the paperwork and enable secure transfer of documents to multiple departments using the latest technology for tablet devices, which is now made available to more than 250 DSAs. 

Ian Hodges, Managing Director of Retail Banking at RAKBANK, said: “Over the years, RAKBANK managed to transform the concept of digital banking solutions in the UAE through a host of award-winning solutions including MobileCash, authenticated web-chat, and Click and Collect. Staying true to our prominent position as an innovative and dynamic player, today we’ve extended our digital banking services to our sales teams and created an end-to-end digital service that connects various departments within the Bank. Currently the App is designed for credit card applications but we plan to extend this facility to other banking products in the near future.”

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RAKBANK Group today announced a net profit of AED 250.0 million for the first three months ended 31 March 2016. Total income during the quarter grew by 6.2% year-on-year to AED 990.0 million as Net Interest Income and Income from Islamic products net of distribution to depositors were up by 1.5% to AED 744.3 million. Non-interest income grew by 23.6% year-on-year to AED 245.7 million on the back of income from the insurance segment, from investments, and from fees and commissions. 

Operating Expenses were down by 9.4% from the same period last year as the Group maintained its focus on cost optimization. Combined with an increase in Total Operating Income, the Bank’s cost-to-income ratio dropped to 34.5% compared to 40.4% in the previous year. Operating Profit before Provisions increased by 16.8% to AED 648.3 million, however, provisions for Loan Impairments also increased over last year by AED 205.2 million due to higher loan provisioning in the Bank’s unsecured lending portfolios. The Bank remains well provisioned against loan losses with a conservative Loan Loss Coverage ratio of 83.5% compared to 84.6% at the end of the first quarter of 2015 which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans.  

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The Bank has faced continued headwinds primarily in our Small Business Finance and SME portfolios due to the challenging business environment globally and locally. In the first quarter of 2016 we took the decision to move our SME products into a separate segment - Business Banking – so we can manage this sector of clients in a more holistic manner. The reorganization in no way indicates any change from our belief that SMEs are a vital part of the UAE economy and as the largest SME lender in the country we remain firmly committed to helping this segment grow, particularly during challenging times.”

The first quarter of 2015 also saw an escalation in the Bank’s diversification strategy as it continued to become increasingly active in the Wholesale Banking segment, which includes Commercial and Corporate Banking, Trade Sales, Financial Institutions Lending, and Asset Based Financing. This segment grew by AED 1,806.6 million or 140.1% year-on-year. The Bank’s Islamic Banking unit, Amal, continues to record growth with an increase of AED 559.5 million in its financing portfolio, up by 14.2% year-on-year. Gross Loans and Advances grew by 7.9% year-on-year to AED 28.8 billion across the Bank’s business segments. The Group’s Total Assets stood at AED 40.9 billion as at 31 March 2016. 

The Bank’s Tier 1 ratio as per Basel II was 24.3% at the end of the first quarter of 2016 compared to 24.2% at the end of the first quarter of 2015, against a requirement of 12% set by the UAE Central Bank. The regulatory eligible liquid asset ratio at the end of the quarter was 17.8%, compared to 19.1% at the end of 2015, and advances to stable resources ratio stood comfortably at 82.5% compared to 83.3% at the end of 2015. “We find that our level of capital provides us with ample room for growth in the future particularly as we look to further diversify our balance sheet across all segments of clients in the UAE. We expect the first half to remain challenging for us, however we will continue to focus on driving core business growth, enhancing efficiency, and diversifying sources of income,” added England. 

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RAKBANK successfully concluded its Annual General Meeting (AGM) today at its headquarters in the emirate of Ras Al Khaimah, where the distribution of 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.” 

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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.

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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. 

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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. 

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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. 

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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.