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

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RAKBANK partners with INPAY - a European Fintech remittance service provider – to offer customers the lowest remittance fees in the market when transferring Euros to 25* European nations a charge of 25 UAE dirhams per transfer through RAKMoneyTransfer. Likewise, it allows customers to send money via the digital banking platform and from any one of the Bank’s 38 branches, where the Euro is credited directly to the beneficiary’s bank account on the same day with no hidden corresponding fees or backend charges.  

“RAKBANK is expanding its global presence and the Bank’s remittance footprint into the European corridor through this strategic partnership with INPAY in order to offer customers a seamless banking experience with the new and enhanced remittance services. This will enable our customers to make secure, faster and convenient Euro transfers to 25 European nations,” said Geoff Stecyk, RAKBANK’s COO.

“Currently we are witnessing a shift in the way people are remitting money abroad and for that reason; we enhanced the customer’s money transfer journey with RAKBANK. Customers can now remit money using their RAKBANK account or credit card. At RAKBANK, we believe that we can achieve great value proposition for our customers through strategic collaborations with FinTech’s rather than competing with them,” he added.

INPAY’s Founder & CEO, Jacob Tackmann Thomsen, said: “This partnership with RAKBANK, one of the most digitally advanced banks in the UAE, demonstrates INPAY’s relevant cross-border payments offering to financial institutions globally. We see this as an excellent example of how INPAY as a FinTech company enables its bank clients such as RAKBANK to provide their customers with even better services and do it at a go-to-market speed that was previously impossible.”

* Austria, Denmark, Hungary, Norway, Slovenia, Belgium, Finland, Ireland, Poland, Spain, Bulgaria, France, Italy, Portugal, Sweden, Croatia, Germany, Luxembourg, Romania, Switzerland, Cyprus, Greece, Netherlands, Slovenia, United Kingdom.

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RAKBANK is now the new Official Bank of FC Barcelona in the UAE  

The National Bank of Ras Al Khaimah (RAKBANK) and FC Barcelona have announced a strategic Regional Partnership for 3 years extendable by another 2 years whereby RAKBANK has become the Official Bank of FC Barcelona in the United Arab Emirates. This partnership entails the launch of new FC Barcelona dedicated co-branded products including Mastercard Platinum Credit and Debit Cards. 

The contract was sealed in the presidential box at the Camp Nou and was attended by FC Barcelona’s Chief Executive Officer, Oscar Grau, while Frederic de Melker, Managing Director of Personal Banking, represented RAKBANK at the event.

With this association RAKBANK Barca fans can look forward to access FC Barcelona branded merchandise and opportunities to watch their favourite players at matches in Barcelona amongst other benefits.  

Frederic de Melker, RAKBANK’s Managing Director of Personal Banking commented: “We are delighted to partner with FC Barcelona, one of the world’s leading football clubs, to become their official bank in the country. UAE is a football loving nation of dedicated fans who avidly follow the game. Therefore, we deemed it fit to bring their favourite club closer home by building increased affinity of the segment with the Club and RAKBANK.” 

“We are very pleased with this strategic alliance between RAKBANK and FC Barcelona. The spirit of football is timeless and we aim to deliver unique value propositions through the RAKBANK co-branded Credit, Debit Cards, and other banking products. This also includes the BarcaRewards that are directly pertinent to FC Barca fans here in the UAE, which aims to offer exciting football benefits and privileges.” said Peter England, CEO RAKBANK.

FC Barcelona was founded 118 years ago in 1899, and is unique in many ways. The club is owned by its more than 145,000 members and can boast of being the most successful club in Europe over the last years. Since season 2004/05 they have won four of the Club’s five Champions League titles and nine of their 25 domestic league titles. Such unstoppable growth in recent years has led to a global reach of more than 315 million fans and made FC Barcelona a world leader on social media.

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RAKBANK has partnered with Xpress Money, one of the most dependable money transfer organizations in the world, to offer convenient money transfer services to RAKBANK customers through the Bank’s award-winning remittance service, RAKMoneyTransfer (RMT). The Bank’s money remittance service is available in 5 countries including India, Pakistan, Philippines, Sri Lanka and Nepal. By virtue of this partnership with Xpress Money, RAKBANK has expanded its RMT service to 20 new countries with a total reach of 25 countries* worldwide. It will also allow customers to make hassle-free money transfers with greater convenience and maximum security. 
 
RAKMoneyTransfer service has been specially designed to meet the remittance needs of customers who can conveniently remit money from their RAKBANK Account or Credit Card to the aforementioned countries. In addition, RMT offers another convenient choice of cash pickup options through 85,000 Xpress Money agent locations, out of the 200,000 locations that Xpress Money has globally. RMT also provides customers with highly competitive exchange rates to ensure the most convenient, secure and cost-effective transfer solution that can be completed at just the click of a button using RAKBANK’s Digital Banking platform and through all of the Bank’s branches. 
 
Peter England, RAKBANK CEO, said: “In line with the Bank’s strategy to offer customers a seamless banking experience, we are currently focusing on aligning our offering through strategic partnerships to increase the Bank’s remittance footprint. We are delighted to have partnered with Xpress Money to extend our RMT service into new territories with the objective of offering the expat community in the UAE the ability to immediately remit money back home. Therefore the partnership will enable our customers to make secure, faster and convenient money transfers to 20 countries.” 

Sudhesh Giriyan, COO, Xpress Money, said: “It has been a constant endeavor of Xpress Money to make money transfers easily accessible and affordable to customers globally. Through our global network of partners in 165 countries, we offer convenient money transfer services, with multiple pay-in and pay-out options, suitable to our customers’ needs. This collaboration gives us the opportunity to offer digital solutions through RAKBANK, elevating the level of their customers’ convenience as they can now send money anytime, to 20 new countries. We are happy to have partnered with a brand that is also working towards a similar objective that benefits the end customer.”

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RAKBANK recently worked alongside their partners C3 and Farnek respectively in order to host a financial literacy campaign at both the Dubai and Ras al Khaimah headquarters. The objective of the financial literacy campaign was to highlight to the Farnek blue collar employees, also C3 prepaid cardholders, about the ability to instantly transfer money to select Asian countries* at competitive rates with RAKBANK’s Award winning** RAKMoneyTransfer remittance service by conveniently using the C3 digital mobile application on their Smartphones.   

Farnek is a leading UAE-based facilities management (FM) company that provides cleaning services for the Bank and C3 is RAKBANK’s official Prepaid Card Service Providers. Hosted by C3 at RAKBANK offices, its aim was to educate the Farnek blue collar staff about prudent financial planning and the features of the C3 prepaid payroll cards such as immediate salary transfers, payroll solutions and savings that will help them achieve their financial goals.

Commenting on the campaign, RAKBANK CEO Peter England said: “The financial literacy campaign that was driven by C3 and supported by Farnek is in line with one of RAKBANK’s main CSR pillars of financial inclusion. We are committed to offering a more holistic banking experience by providing an entry into the UAE’s blue collar payroll schemes. The Bank has always been at the forefront of a well-defined segmentation strategy to deliver a diverse selection of products & services.”

“Since 2007, C3 has provided businesses, banks and exchange houses a payroll solution that allows blue collar employees to withdraw money and make physical or online payments. Digital technology and enhanced financial infrastructure have provided the key foundation for financial inclusion of migrant workers in the UAE. Thanks to the launch of the C3 Mobile Application, these workers can benefit from an extended range of digital financial services,” said Marwan Hachem, C3-Edenred’s Managing Director, Africa & Middle East.

Markus Oberlin, Farnek’s CEO, said: “At Farnek, technology and innovation are at the forefront of everything we do for our customers so naturally we want to ensure those brand values are offered to our staff. This partnership with RAKBANK and C3 adds another dimension to staff wellbeing and further underscores our commitment to our people who, through hard work and commitment, drive our business success.”

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RAKBANK has recently announced the introduction of a cognitive chatbot that allows Bank employees to interact with an Artificial Intelligence-powered IBM platform to help them answer questions, find solutions or quickly route pending requests to human advisors. Using AI technology will enhance the employee’s experience when facing technical roadblocks at work. The Bank will begin by making the system accessible to all its employees to answer queries on everything from ‘How do I change my password?’ to ‘How do I update my home address with the bank’? The chatbot will be able to answer these simple questions in just a split second while directing employees to a human to answer questions that are more complex. 

The chatbot service is powered by cloud-based AI technology from IBM based on an agreement between RAKBANK and IBM which was signed in early 2017. With the chatbot being able to find answers from a variety of sources of information instantly, staff are more efficient and productive. Offering a much simpler and faster process to resolve issues internally and find solutions will in turn benefit the customer. The chatbot also uses AI-based tone analyzing capabilities to better understand how an employee is feeling – for example, if they are unhappy or frustrated – and then change its tone and actions accordingly. 

Peter England, RAKBANK CEO, said: “We at RAKBANK believe in leveraging new technologies that constantly enhance the experiences for both employees and in turn customers. By using AI technology to power our chatbot, our employees are able to get answers to their simple queries easily and in real time. Leveraging AI is in line with not only our strategy here at the Bank, but also enables us to enhance our existing market-leading chat service. The second phase of the chatbot service is to introduce it to customers. In the near future, customers will be able to get answers to their simple queries with zero waiting time. RAKBANK will continue to find ways to improve efficiency across the Bank, and engage in strategic partnerships such as IBM that gives the Bank a competitive edge in the market. These are driven by our emphasis on innovation, which we regard as an essential vehicle for reaching future goals”.

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RAKBANK today announced that it has partnered with Air Arabia and Mastercard^®, a leading technology company in the global payments industry, to launch a co-branded Mastercard Platinum Credit Card, which cardholders can use globally for purchases and cash withdrawals. Air Arabia has an innovative loyalty program called Air Rewards that is based on spend rather than miles. Customers subscribing to the new co-branded credit card will immediately earn a joining bonus of 15,000* Air Rewards that will, in time, get them access to free flights and more rewards from Air Arabia. 

Additionally, ‘Air Rewards’ can be accumulated whenever cardholders make a purchase in the UAE or internationally on their co-branded Card, which can be redeemed conveniently all year round in the form of flights, meals and baggage vouchers with Air Arabia. To ensure customer convenience, the Air Arabia co-branded Mastercard Platinum Credit Card also offers a 0% easy payment plan of up to 12 months without a processing fee. Likewise, cardholders will benefit from the complimentary Sharjah Airport drop off and pickup services to and from anywhere in Dubai or Sharjah. 

“Over the years, the Bank managed to transform the concept of card reward programs in the UAE through a host of unique features and now we are extending Air Arabia’s Air Rewards loyalty programme to our cardholders,” said Peter England, RAKBANK CEO. “Staying true to the Bank’s prominent position as an innovative and dynamic player, our partnership with Air Arabia will help us offer Air Rewards to customers with every purchase they make using the Mastercard Platinum co-branded Credit Card.”

Commenting on the co-branded credit card launch, Adel Al Ali, Group Chief Executive Officer of Air Arabia, said: “This new co-branded credit card is a new value added product that we offer to our customers to enjoy superior services and unique benefits across our network. This new card will add tangible value to our frequent travelers’ and offer them attractive opportunities to earn Air Rewards points and redeem it for complimentary flights and other services. At Air Arabia we remain committed to constantly innovate to deliver great value to our customers.”

“In addition to offering the simplicity and convenience of Mastercard’s innovative payment technologies, our co-branded cards provide the consumers with a host of exciting benefits from their favorite lifestyle brands. With every purchase they make with this RAKBANK and Air Arabia Mastercard Platinum card, consumers can look forward to enjoying an array of travel rewards, coupled with a deep sense of trust they have come to associate with Mastercard, thanks to our multi-tiered safety and security features,” said Girish Nanda, General Manager, UAE and Oman, Mastercard.

Air Arabia is the Middle East and North Africa's first and largest Low Cost Carrier (LCC). The carrier fly passengers to over 140 destinations spread across the Middle East, Africa, Asia and Europe. Offering comfort, reliable and value for money air travel across its network; Air Arabia aim is to help passengers fly more often to more places at their own convenience. Moreover, Air Arabia operates from four main hubs - Sharjah International Airport and Ras Al Khaimah International Airport in the UAE, Mohamed V International Airport in Casablanca, Morocco and Borg Al Arab International Airport in Alexandria, Egypt.

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The National Bank of Ras Al-Khaimah (RAKBANK) announced a consolidated net profit of AED 205.1 million, an increase of AED 50.4 million over the first quarter of 2017. The Total Assets stood at AED 49.1 billion, which is an increase of 14.6% compared to 31 March 2017. Gross Loans and Advances closed at AED 33.6 billion, with a 10.3% increase over the same period of last year. Total income has declined by 2.3% when compared to the last quarter of 2017, and dropped by 3.4% in contrast to the same period in 2017. 

Commenting on the financial results, RAKBANK CEO, Peter England, said: “We have continued our efforts in the first quarter to strengthen and diversify our balance sheet and this is paying dividends in terms of lower provisions. After peaking by the end of 2016, provisions have continued their downward trajectory, reducing by 1.0% when compared with the fourth quarter of 2017 and 17.4% from the first quarter of 2017. Top line income has largely stabilised as the decline during 2017 in terms of net interest income has halted and we should see a steady growth throughout the year.” 

England also commented, “Besides the financial performance, RAKBANK has participated in several initiatives throughout the first quarter of 2018. One of the Bank’s endeavours was hosting the launch of Metals Focus Gold 2018 Annual Report at our Headquarters. This momentous event was a statement of intent for RAKBANK to roll out its RAKGOLD initiative that will contribute to the future development of the region’s bullion market. Moreover, in line with its strategy of assisting businesses in the UAE, the Bank partnered with Etisalat through their ‘Hello Business Hub’, which is a one-stop location that enables small and medium businesses and start-ups to set up their operations in the UAE. In addition, the Bank is continuously committed to strengthen its Digital Banking services to customers where it partnered up with FEWA and SEWA to make a tedious task such as paying bills seamless via all its diverse touch points.”

Furthermore, the Bank’s net interest income and net income from Islamic financing increased by 1.1% compared to same period last year. Likewise, non-interest income was down by AED 39.4 million to AED 243.9 million mainly due to a decrease of AED 29.1 million in investment income and AED 14.3 million in net fees and commission income. The Total Assets rose by 14.6% to AED 49.1 billion compared to 31 March 2017. This was mainly due to the increase in Gross Loans and Advances, which grew by 10.3% year-on-year from the strength of the Wholesale Banking, Business Banking and Personal Banking Loans. Customer deposits grew by 11.9% to AED 33.3 billion compared to the 31 March 2017 and this was mainly due from the rise of AED 3.1 billion in time deposits.

The Bank’s total capital adequacy ratio as per Basel III stood at 18.64% compared to 20.69% at the end of the previous year. The Common Equity Tier 1 ratio stood at 17.47%. This level of capital provides the Bank with ample room for growth in 2018. The regulatory eligible liquid asset ratio at the end of the quarter was 13.6% compared to 15.0% at the end of 2017. The advances to stable resources ratio and stood comfortably at 88.0% compared to 87.8% at the end of 2017. 

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RAKBANK today hosted the launch of Metals Focus Gold 2018 Annual Report at its Dubai Headquarters located in Dubai Silicon Oasis. Metals Focus, one of the world’s leading independent precious metals research companies, has released its much anticipated Gold report in the Emirate to coincide for the first time with similar launch events in London, Mumbai and Toronto on the same day.

At the launch of Gold Focus 2018, RAKBANK introduced its RAKGOLD initiative, a division of its Treasury department, which represents the establishment of the Middle East region’s first full service end-to-end Bullion Banking unit. 

The event was attended by Peter England, RAKBANK CEO, Philip Newman, Director at Metals Focus, Neil Meader, Research & Consultancy Manager at Metals Focus, Vikas Suri, Managing Director of Treasury at RAKBANK, Jeffrey Rhodes, Principal Consultant to the RAKGOLD project and Founder of Rhodes Precious Metals Consultancy DMCC, along with other top management from RAKBANK and Metals Focus.

Speaking on the occasion, Peter England, RAKBANK CEO said, “We recognize the strong appeal for investing in physical gold across the UAE with many people having an unshakeable belief in the security and safe haven status that the yellow metal offers. The Bank is delighted to be associated with Metals Focus, given its highly regarded position in the global precious metals industry, and we see this landmark event as a statement of intent as RAKBANK rolls out its RAKGOLD initiative that will contribute to the future development of the region’s bullion market”.

Vikas Suri, Managing Director of Treasury at RAKBANK said, “RAKBANK began its involvement with the gold sector two years ago with the establishment of wholesale gold loan activities; over the last twelve months we have been working on developing the required infrastructure to enable the Bank to offer its Corporate clients, both Conventional and Islamic, as well as Retail, a wide range of suitable products and services that will support the physical gold sector in the UAE”.

Philip Newman, Director at Metals Focus said, “We are delighted to partner with RAKBANK on the launch of our annual Gold Focus 2018 report given their plans to establish full service bullion banking operations and we look forward to developing a deep and long lasting relationship”.

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In line with the Bank’s strategy in offering its customers a more holistic banking experience, RAKBANK recently announced the launch of the contactless* cash withdrawal facility that is available on more than 170 NFC enabled ATMs. The Bank has more than 200,000 active cardholders that are able to use their NFC enabled RAKBANK credit or debit card at any of the NFC enabled ATMs to conveniently withdraw cash. The integration of additional FinTech models into the Bank’s operations will provide new opportunities for customers similar to the Apple Pay and Samsung Pay experience, which were rolled out back in 2017. 

The Bank is committed to strengthen its Digital Banking services to customers, whereby cardholders do not have to register to gain access to this convenient service or take any unnecessary steps to use the facility. All cardholders need to do is to tap their cards on the clearly marked NFC reader that is available on RAKBANK ATMs and then enter their PIN and amount required to withdraw their cash. 

“RAKBANK has always been at the forefront of empowering customers with technology-based solutions that save them time, effort and money. While maintaining a customer-centric approach, the Bank built on the achievements of the previous year and set the scene for continued future growth, which emphasized the importance of innovation,” said RAKBANK COO, Geoff Stecyk. “This launch is the first of its kind in the UAE and is firmly aligned with the Bank’s focus on innovation to leverage emerging technologies in delivering new and personalized experiences that help our customers’ access simply better digital banking solutions,” he added. 

The Bank will continue to find ways to improve efficiency, and engage in strategic partnerships that will give the Bank a competitive edge in the market. Looking ahead, RAKBANK will continue to look to FinTech and other innovative solutions as it invests in product, service and technology enhancements. This will help the Bank offer the fullest possible range of products and services to its customers.

*Availability
Currently this facility is only available for RAKBANK Contactless Cards.

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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 a 30% cash dividend of the Bank’s paid-up capital to shareholders for the financial year ended 31 December 2017 was approved. The dividend recommendations will result in 62% of Group’s net profit being paid out.   

During the meeting, attendees unanimously approved all agenda items including the Bank’s consolidated balance sheet and profit and loss statements for the financial year ended 31 December 2017. Additionally, the shareholders approved to increase the regulatory credit risk reserve by AED 71 million to align it at 1.5% of the Bank’s total credit risk weighted assets.

RAKBANK Chairman, H.E. Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2017. “Over the course of 2017, the Bank’s performance continued to improve. Year-on-year profitability increased, confirming the success of our strategy in supporting the diversification of our revenue streams, reduction of provisions, and improvement in asset growth and asset quality. Net Profit for 2017 totaled AED 810.5 million, increasing by 22.3% over the previous year. During the course of the year, our strategy focused on consolidating efforts to offer a service and product portfolio that would deliver a ‘Simply Better’ journey for all stakeholders. The strategy is focused on building the performance of new and improved business units, by continuing to innovate in the introduction and set-up of a more diverse range of activities. RAKBANK will continue to find ways to moderate its legacy operating costs, improving efficiency across the Group, and engaging in strategic partnerships with FinTech players that will give the Bank a competitive edge in the market.”  

“Our aim is to continue to diversify our loan book in core areas, while at the same time increasing revenue streams from non-interest income generated by our products and services, and expanding our footprint in the Wholesale and Treasury space. Furthermore, we have made great strides in consolidating the efforts of the previous year with new or revamped business units, all realising positive results. These accomplishments have, in part, been driven by our emphasis on innovation, which we regard as an essential vehicle for reaching future goals,” Alshamsi added.

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RAKBANK provides bill payment solutions to customers based in Ras Al Khaimah, Ajman, Umm al Quwain, Fujairah and Sharjah.

RAKBANK is pleased to announce its recent partnership with Federal Electricity & Water Authority (FEWA). The partnership will facilitate FEWA bill payment solution through the Bank’s Digital Banking platform and other touch points for RAKBANK customers that live and have businesses in the emirates of Ras Al Khaimah, Ajman, Umm al Quwain, and Fujairah. 

Similarly, last year the Bank signed an agreement with Sharjah Electricity & Water Authority (SEWA) to facilitate the bill payment via its Digital Banking Platform for customers in Sharjah. The SEWA bill payment service offered to the Bank’s customers has currently been enhanced and they can now pay their bills through other touch points such as the Interactive Voice Response technology (IVR). 

Geoffrey Stecyk, COO of RAKBANK, said: “In line with the Bank’s commitment to strengthen its Digital Banking services to customers, the partnerships with FEWA and SEWA make a tedious task such as paying bills seamless. We are delighted to offer RAKBANK customers convenient, secure, and simple bill payment solutions through all the different touch points. This service means customers can take advantage of our effective Digital Banking platform to pay their bills on time from the comfort of their own home.” 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Click here for more information on Apple Pay.

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

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

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

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

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 20.4% as of the end of September 2017. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of September 2017 is 14.1% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 88.8% compared to 85.5% at the end of 2016.