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

30/11/2016

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

27/10/2016

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.”

24/10/2016

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.” 

11/10/2016

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.”   

06/10/2016

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.” 

21/09/2016

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.

01/09/2016

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.   

23/08/2016

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. 

31/07/2016

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.

13/07/2016

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.