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

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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.

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In its strive for added customer convenience and banking simplicity, RAKBANK recently upgraded its RAKselect service across Conventional and Islamic Banking. With a strong focus on providing convenient services to the different customer segments, the Bank is extending RAKselect service to a wider customer segment by offering them access to a more customized banking experience with new benefits and privileges. 

RAKselect has been made available to customers who are earning a monthly income of AED 20,000 and above. All RAKselect customers will automatically start earning interest on their RAKselect accounts. Customers can also use the RAKselect banking areas across all the Bank’s branches. Preferential treatment at Teller counters, preferential tariff on select banking services and access to Personal Financial Consultants (PFC) who will assist them with their investment and insurance needs, will all be available to these customers. In addition, the limit on withdrawals has been enhanced to AED 20,000 and AED 50,000 on customers’ RAKselect Debit Cards on ATM withdrawals and retail spends respectively. Customers can also apply for the Bank’s newly launched ‘High Fliers’ Credit Card or any of RAKBANK Conventional or Islamic Credit Cards based on income and eligibility*. Additionally customers who meet certain Asset and Investment thresholds will also be qualified for RAKselect.

“RAKBANK prioritizes convenience in the customer’s banking experience. We are committed to offering our customers the highest possible standards of service with a full range of benefits and exclusive banking services that keep pace with their lifestyle,” said RAKBANK CEO Peter England. “We are pleased to announce the significant upgrade of RAKselect service to accommodate our customers’ needs,” added England. 

*Click here to learn more about RAKselect eligibility criteria

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Bank ABC (Arab Banking Corporation (B.S.C.)), First Abu Dhabi Bank PJSC (FAB), and Standard Chartered Bank, acting as the Initial Mandated Lead Arrangers and Bookrunners, successfully closed a debut US$350 million 3-year Syndicated Term Loan Facility for The National Bank of Ras Al Khaimah (P.S.C) (RAKBANK). 

The Facility was signed on 9th October 2017 and will be utilized by RAKBANK for general funding purposes. 
 
The syndication was launched at US$250 million on 8th August, 2017 and the facility was well received by the market and oversubscribed on the back of strong participation from regional and international banks. RAKBANK decided to upsize the facility size to US$350 million. A total of 22 banks from the GCC, Europe and Asia participated in the Facility.  
 
RAKBANK is rated Baa1 (stable) by Moody’s and BBB+ (stable) by Fitch Ratings. 

The emirate of Ras Al Khaimah will see the return of the RAKBANK Ride, which it has been announced will take place on January 19th 2018.

The cycling event, which first took place in 2015 and attracted over 500 participants, will be a major event on the UAE cycling calendar and will take place over a 85km course. The ride start and finish will be in Al Marjan Island, one of the key tourism development zones in Ras Al Khaimah. A 30km course and a 10km “fun ride” course will also be available for less experienced cyclists. The RAKBANK Ride will further place the spotlight on Ras Al Khaimah, which has several challenging routes for cyclists and has earned a reputation as a growing destination with the UAE and beyond for cycling and sports activities in general.

Commenting on the announcement, Peter England, RAKBANK CEO, said “Recognizing the growing number of cyclists in the UAE, we are pleased to announce the return of RAKBANK Ride to our home emirate of Ras Al Khaimah. RAKBANK Ride aims to promote the sport of cycling, a healthy and active lifestyle, as well as to showcase the most mountainous landscapes in the emirate. We at RAKBANK believe in the value of getting office employees away from their desks for team bonding exercises as a healthy body leads to a healthy mind.” 

The event is being overseen by Big Wheel Marketing, and Founder / CEO Steven Rice said “Ras Al Khaimah’s natural assets make it a perfect location for a wide range of sports, and none more so than cycling. Being home to Jebel Jais, which is the highest mountain in the UAE, and with a steady increase in the awareness of the emirate, we are now seeing regular groups of cyclists coming to Ras Al Khaimah from locations all over UAE and the wider GCC countries, who enjoy the challenging yet uniquely beautiful cycling routes available. We are confident that the RAKBANK Ride will be a successful event and will remain a fixture on the cycling calendar for many years to come”.

The RAKBANK Ride partners include Hopasports, who provide the online event registration page at https://www.hopasports.com/event/rakbank-ride-2018, on-the-ground organization and logistics services partner Revolution Cycles, and Promoseven  Sports Marketing. The Double Tree by Hilton Hotel, Marjan Island, is the partner hotel for the event and has provided a selection of special accommodation offers for race entrants. The RAKBANK Ride is approved by the UAE Cycling Federation and will be supported by the RAK Police.

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RAKBANK is pleased to announce the arrangement of a AED 125 million credit facility to Reem Finance PJSC, a private joint stock company incorporated in Abu Dhabi, focusing on commercial lending to a wide range of businesses. Reem Finance provides innovative and tailored commercial financing solutions across the UAE with agility and quality of execution.

The loan facility was signed at the Reem Finance PJSC’s office in Abu Dhabi. Attending the ceremony were Mustafa Kheriba, Reem Finance’s Board Member, Howard Kitson, Reem Finance’s Chief Executive Officer, and Peter England, RAKBANK’s Chief Executive Officer, along with Rajan Khetarpal, RAKBANK’s Board Member, and other senior representatives from RAKBANK, and Reem Finance.

Peter England, RAKBANK CEO, said: “We are delighted to have partnered with Reem Finance to support their general expansion plan in commercial lending. This facility allows us to diversify our asset book into Non-Bank Financial Institutions (NBFIs) in the region.”
 
Commenting on the signing, Howard Kitson, Reem Finance CEO, said: “We are extremely pleased to sign up on this partnership with RAKBANK as this is the second medium term financial agreement for us in the UAE. This agreement reflects strong investor confidence in the company’s operations and future growth potential and confirms the positive market sentiment as the company enters a new era of business development and is geared to become a market leader under the directive of the new board and the new executive team.” 
 

(Caption - From left to right: Peter England – RAKBANK CEO, Mustafa Kheriba – Reem Finance Board Member, Rajan Khetarpal – RAKBANK Board Member, Howard Kitson – Reem Finance CEO)

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RAKBANK recently hosted the ‘Happiness Without Borders’ workshop at its headquarters in Dubai Silicon Oasis, which brought together Chief Happiness and Positivity Ministers from various governmental entities. This was an important milestone as it follows the general trajectory of the UAE in its move towards achieving happiness in all areas of society. The Ministers shared with participants their experience and best practices that they garnered from attending training sessions organized by the National Happiness and Positivity Programme. The programme aims to provide institutions with the capabilities to establish positive environments that ensure employee happiness and customer satisfaction.

RAKBANK’s top management attended the workshop and discussed with the Happiness Representatives about evolving the Bank’s corporate culture in ways that make it friendlier to both the employees and customers alike. Participants shared their views on creating a sustainable culture of happiness and identified concepts that may be implemented to that end. Furthermore, they discussed ideas on keeping staff regularly updated on the changes and enhancements made. 

Commenting on the ‘Happiness Without Boarders’ workshop, RAKBANK CEO, Peter England, said: “We are very excited that RAKBANK was chosen to be the first Private Institution to hold a 'Happiness Without Borders' workshop in the UAE. Now we have the initiative that is driving happiness on a national platform and I think it is a wonderful opportunity to come together and make sure that we take a great concept such as happiness, figure out how to institutionalize it, make it sustainable, and get all the people in the eco system a whole lot happier.

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RAKBANK announced that it has mandated Bank ABC (Arab Banking Corporation (B.S.C.)), First Abu Dhabi Bank PJSC (FAB), and Standard Chartered Bank as the Initial Mandated Lead Arrangers and Bookrunners to arrange on its behalf a debut US$ 250 million 3-year syndicated term loan facility (the “Facility”). The Facility will be used by RAKBANK for general corporate purposes. Syndication was launched today and is expected to close by mid-September 2017.

In line with RAKBANK’s strategic plan to diversify its product offering to better serve the needs of the customers and enhance shareholder value, the Bank has increased its focus on Treasury, Corporate, and Institutional Business.

RAKBANK is rated Baa1 (stable) by Moody’s and BBB+ (stable) by Fitch Ratings.

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The National Bank of Ras Al-Khaimah (RAKBANK) today announced a strategic partnership with Invoice Bazaar, a FinTech Supply Chain Finance platform in the United Arab Emirates. The partnership allows RAKBANK to participate as a ‘Receivable Purchaser’ on Supply Chain Finance transactions originated by Invoice Bazaar on its platform. RAKBANK is the first bank in the Middle East to have partnered with a Fintech Platform for enhancing the bank’s offering to the SME clientele. 

“This partnership is significant to us as we move towards further digitizing our offering to our business clients. This opens up a new channel in SME lending.” said Peter England, CEO of RAKBANK. The bank is also seeking to broaden the partnership by exploring other synergies to bring in efficiency in bank’s invoice discounting portfolio. 

Invoice Bazaar which has an in-house developed Supply Chain Finance platform, connects large buyers with SME suppliers that enables SME suppliers to avail early payment on their receivables. The liquidity towards early payments is provided by “Receivable Purchasers”. Invoice Bazaar has been successful in attracting institutional funds to provide liquidity and RAKBANK is the first bank to partner Invoice Bazaar. Invoice Bazaar, which started a year back boasts of zero losses in its portfolio and business presence in UAE, India and Singapore. 

“We are extremely pleased to have RAKBANK as the 1st partner bank in our endeavour. RAKBANK is one of the most active and innovative banks in the region, and it was no surprise that they moved faster than any other bank to understand the synergies that exist. This association will help us attract global and local corporations to implement Supply Chain Program for their suppliers.” said Anand Nagaraj, Founder & CEO of Invoice Bazaar.

The first transaction under the partnership has already been completed. In the initial phase, five Supply Chain Finance programmes are under implementation. 

Supply Chain Finance is a win-win concept that helps suppliers get paid early on their receivables from a bank/financier and at the same time ensuring the buyer to not reduce their DPO (Days Payable Outstanding). Most large global corporations have implemented Supply Chain Finance programmes and other corporates are slowly learning the benefits of implementing a program. Treasury Managers in public listed companies are quick to implement such programs, as they understand the balance sheet benefit a Supply Chain Finance program can bring.

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The National Bank of Ras Al Khaimah (RAKBANK) Group announced a consolidated net profit of AED 381.5 million for the half year ended 30 June 2017. The second quarter of 2017 generated profit of AED 226.7 million, an increase of 16% year on year and a 46.5% increase compared with the first quarter net profit. Gross Loans & Advances grew by 6.2% to AED 31.6 billion for the half year ended 30 June 2017 with strong growth in Wholesale Banking book and steady growth in the Personal Banking and Business Banking segments.  

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The trends for the 1st half of 2017 are showing continued positive signs where solid progress is made by all business units being Wholesale Banking, Business Banking, Personal Banking, and Treasury. Total Income for the second quarter of 2017 increased by 2.1% over the previous quarter and impairments continue on a downward trend after peaking in Q3 2016. Impairments are still relatively high reflecting the nature of our legacy book, however we expect continued improvements in this area as the year progresses.”

Total Assets increased by 3.4% to AED 44.0 billion compared to the end of 2016. This was due to an increase in Gross Loans & Advances of AED 1.8 billion partially offset by a decrease in investments of AED 497.6 million. The healthy growth of corporate loans from Wholesale Banking and the steady progress of loans from the Business Banking and Personal Banking segments contributed to the increase of the Gross loans & Advances by 8.2% year-on-year. Likewise, Customer deposits grew by AED 1.2 billion to AED 30.6 billion, a 3.9% growth compared to the end of 2016. 

“Other than the financial performance, the Bank continues to invest in strategic areas and initiatives. During the quarter we commenced our partnership with C3 to open a completely new market segment where the Bank began offering payroll solutions for both banked and unbanked employees of companies. Additionally, we have expanded our remittance solutions by tapping into new corridors across Asia with plans to further expand in the second half of the year. With the aim of simplifying customers’ daily banking requirements, we were the first bank in the Middle East to introduce a new and innovative digital solution, Samsung Pay for ATMs. Looking ahead, the product and service pipeline for this year remains very strong, so expect to see continued product and service innovation from RAKBANK as the year progresses”, added England.

Total Income was AED 1.9 billion for the six months ended 30 June 2017, which increased by 2.1% for the second quarter of 2017 over the previous quarter, though declined by 2.8% over the comparable period in 2016. The Group’s Treasury, Wholesale Banking and Insurance business brought about strong growth in the non-interest income though the net interest income declined due to the changes made in the Bank’s business mix of lending. Operating expenses were marginally up year-on-year after the cost optimisation exercise in the first half of 2016 and the cost to income ratio stands at 37.4%. Impairments continued their downward trajectory from the peak in the third quarter of 2016, declining by 14.9% in the second quarter of 2017 over the previous quarter. Impairments during the six months ended 30 June 2017 were down by 2.4% from the comparable period in 2016.  

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 21.1% at the end of June 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 June 2017 was 14.9% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 90.9% compared to 85.5% at the end of 2016

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RAKBANK is the first bank in the Middle East to introduce Samsung Pay solutions for its ATMs, in partnership with Samsung Gulf Electronics. This innovative digital solution enables the Bank’s customers to make cardless cash withdrawals from RAKBANK ATMs using their Samsung smartphones* without the need for a physical Debit or Credit card. The Samsung Pay solution for ATMs is an end-to-end contactless process that is considered a ‘Mobile Revolution’, which furnishes customers with effective, secure, convenient, and easy-to-use digital solution that will allow customers to withdraw cash without their cards at RAKBANK ATMs.   

Peter England, RAKBANK CEO, said: “RAKBANK has a rich history of innovation where the Bank has managed to transform the concept of digital banking in the UAE through a host of award-winning digital solutions such as the revamped Digital Banking Platform, MobileCash, Tablet Banking, and Web Chat authentication services. Staying true to our prominent position as an innovative and dynamic player, we now extend our Samsung Pay solution to ATMs and create an end-to-end contactless process for our customers. Currently, RAKBANK is taking a phased-out approach and shall begin by targeting ATMs that have strong footfall in locations such Dragon Mart 2, Wafi Mall, and City Centre Me’aisem. Soon, customers will be able to use Samsung Pay solutions on most of the Bank’s ATM network.” 

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KPMG VAT Leader, Rob Dalla Costa, speaks at the VAT Workshop 

RAKBANK continues to raise awareness of the new tax system that is expected to be implemented on 1 January 2018 by inviting Business Banking customers to attend a comprehensive workshop on Value Added Tax (VAT) from special guest Rob Dalla Costa, a director with KPMG in the Lower Gulf, at the Bank’s headquarters in Dubai. Business Banking customers received insights on the basic principles of VAT, the tools needed to prepare for VAT, and what to expect once the VAT is implemented.   

Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said: “RAKBANK is delighted to have Rob Dalla Costa so graciously host the VAT workshop. The aim is to offer our Business Banking customers a detailed roadmap about the potential functionality and features of the VAT.”

Commenting on the VAT workshop, Dalla Costa, a seasoned VAT expert who has worked on similar implementations in both Australia and Malaysia with the government and the private sector, said: “The introduction of VAT represents a fundamental change for the government and businesses in the UAE. It is going to affect almost every business, large and small, and impact almost every facet of their operations. It is absolutely vital that businesses understand the challenges that VAT will bring and I applaud the efforts of RAKBANK to support their Business Banking customers in this way.”

With over 30 years’ of experience in providing a broad range of taxation advisory and consultancy work, Rob was able to give valuable insight into the probable framework of the VAT to RAKBANK’s diverse customer base. 

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RAKBANK aims to offer Pakistanis in the UAE, the second largest national community, the utmost convenience with the recent expansion of its award winning remittance service, RAKMoneyTransfer (RMT), whereby customers can remit money to Pakistan in just 60 seconds from any of RAKBANK branches to Habib Bank Limited (HBL) and other major banks* located in Pakistan. RAKBANK customers are now able to send money to Pakistan for free** at any of the Bank’s branches without having to worry about a cut-off time.  

“The Bank extended its RMT services to Pakistan with the objective of offering UAE’s Pakistani community the ability to immediately remit money back home. This was achieved with the help of the successful partnership that we developed with HBL. I would also like to point out that the money transfer rates that we provide at the Bank are very competitive with the rates found at exchange houses in the UAE,” said Peter England, CEO of RAKBANK.    

Anwar Zaidi, GM- Head of FI-GTS & Global Remittance Business at HBL stated, “We are extremely proud of this partnership between HBL and RAKBANK. We will now enable our customers to send money to Pakistan instantly in a secure and convenient manner. They can now experience accounts immediately being credited with HBL through RAKMoneyTransfer.”

From left to right: Anwar Zaidi, GM- Head of FI-GTS & Global Remittance Business at HBL, and Peter England, CEO of RAKBANK.    

RAKBANK’s RMT is designed to enable everyday money transfer needs of customers when remitting money to India, Nepal, Sri Lanka, Philippines, and now Pakistan. The Bank’s RMT service offers customers a secure, convenient, and cost-effective money remittance 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. Furthermore, RAKBANK’s RMT was recently awarded the title of ‘Remittance Product of the Year in the Middle East’ by The Asian Banker.

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RAKBANK Awarded the Title of Best Performing Brand for 2016

RAKBANK was honored by His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum with the title of “Best Performing Brand – Retail Banking Services” for 2016 cycle at the 23rd Business Excellence Award ceremony hosted by Dubai Economy in Dubai World Trade Center. Since Department of Economic Development (DED) is committed to promoting awareness of excellence in line with the International standing and ambitions of the UAE, RAKBANK partnered up last year with them and became members of the “Dubai Service Excellence Scheme” for mystery shopping activities for which the Bank was then recognized for its excellence in customer service standards throughout 2016.    

“The partnership between RAKBANK and DED is a confirmation that Service excellence is central to RAKBANK’s overall strategy and is one of the key factors that contribute to the success of the Bank,” said Peter England, RAKBANK Chief Executive Officer. “This prestigious award is a testament to the Bank’s continuous effort to remain innovative and ahead of the curve. We will continue to strengthen our relationship with DED and ensure that we build upon it to achieve higher standards of excellence that are in line with the country’s vision.” He added. 

Seen in picture: The RAKBANK CEO, Peter England, and other top management from RAKBANK receiving the award on behalf of the Bank.

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RAKBANK announced the signing of an agreement with C3, a Prepaid Card Service Provider, in order to provide C3 with a BIN sponsorship on their prepaid cards to strengthen the C3 payroll offering. With this partnership, UAE based companies will be able to provide immediate salary transfers to their blue-collared workers on the C3 prepaid payroll card. This enables RAKBANK to offer payroll solutions for both banked and unbanked employees and companies, thus promoting financial inclusion and opening up new market space for the Bank. 

Moreover, the partnership facilitates that C3 prepaid payroll cardholders are able to instantly transfer money to select Asian countries* with RAKBANK’s Award winning** RAKMoneyTransfer remittance service conveniently using the C3 digital mobile application on their Smartphones. In addition, C3 prepaid payroll cardholders are offered loans and other value added services from RAKBANK.     

The agreement was recently signed at the Seamless Payment exhibition in Dubai World Trade Centre. Peter England, RAKBANK Chief Executive Officer, and Marwan Hachem, Edenred Managing Director of Africa and Middle East, along with other top management from RAKBANK, Edenred, C3, and Prepay solutions, attended the signing ceremony.

(From left to right: Peter England, RAKBANK Chief Executive Officer and Marwan Hachem, Edenred Managing Director of Africa and Middle East) 

Commenting on the signing, RAKBANK CEO Peter England said: “The partnership with C3 is in line with RAKBANK’s commitment to offer a more holistic banking experience by providing an entry into the UAE’s blue-collared payroll schemes. The Bank has always been at the forefront of a well-defined segmentation strategy to deliver a diverse selection of products & services. If you take a look at RAKBANK’s cards portfolio, you will notice that our vast selection of cards ranging from prepaid, debit and credit cards all provide unique features and benefits that are customized to each income segment.”

* India, Philippines, Nepal and Sri Lanka
**Remittance Product of the Year in the Middle East by The Asian Banker

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RAKBANK is pleased to announce the launch of Samsung Pay mobile payment solutions to the Bank’s customers in partnership with Samsung Gulf Electronics. With Samsung Pay, RAKBANK customers can make convenient, simple, and secure contactless payments using their Samsung smartphones at their favorite outlets. 

The Samsung Pay solution is an innovative way where RAKBANK customers can now make a payment at retailers using their Samsung smartphones instead of swiping their cards. To begin, customers must first register their RAKBANK Credit or Debit MasterCard card details in the Samsung Pay application, which is available on all the supported Samsung devices**. To make payments using Samsung Pay, a customer needs to swipe up on the screen of their supported Samsung smartphone, select their RAKBANK MasterCard card, authenticate using a fingerprint or PIN, and tap their phone near the Point of Sale terminal. Samsung Pay is accepted almost everywhere in the UAE and abroad as the application works on both Magnetic Secure Transmission (MST) technologies as well as with Near Field Communication (NFC). This means fewer queues and less time spent making a payment.         

Samsung Pay is a highly secure platform as it works with three levels of security—fingerprint authentication, card tokenization that secures the card number registered on the phone and Samsung’s defense-grade mobile security platform Samsung KNOX.  

Recognizing the growth of the digital banking trends, RAKBANK CEO Peter England said, “Our customers want access to the best technology and, in addition to the completely revamped RAKBANK Digital banking platform, Samsung Pay is another example of a digital solution that offers our customers more flexibility, convenience and choice. At RAKBANK, we are constantly introducing new, alternate channels that can facilitate the customer’s banking experience through several different digital touch points.”    

“The UAE is becoming a market where banking and mobile payments are a lifestyle that is increasingly being demanded. We are pleased to be partnering with RAKBANK to provide customers with a wide range of choices when it comes to making purchases, through Samsung Pay. We are committed to making Samsung users, lives easier and RAKBANK customers will be able to use our digital solution with more flexibility, convenience, and choice,” said Mohammad Gharaibeh, Head of Enterprise – Mobile Business, Samsung Gulf Electronics.

**Availability
In the UAE, Samsung Pay is currently available for Galaxy S8 and Galaxy S8+, Galaxy S7 and Galaxy S7 Edge, Galaxy S6 Edge+, Note 5, Galaxy A5 and Galaxy A7 (2016) and Galaxy A Series (2017). Samsung Pay will also be available for the Gear S3

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The National Bank of Ras Al Khaimah (RAKBANK) Group announced today the financial results for the first three months ended 31 March 2017. RAKBANK’s consolidated net profit was AED 154.7 million, an increase of AED 46.0 million over the last quarter of 2016. Gross Loans & Advances increased by 2.2% from December 2016 to AED 30.4 billion on the back of strong growth in the Wholesale banking book.

Commenting on the financial results, RAKBANK CEO, Peter England, said: “The trends for the 1st quarter 2017 are showing positive signs. We had a very strong quarter on fee income as our efforts in building the Wholesale Banking and Treasury franchise are really beginning to bear fruit. Our year on year net Interest Income has been affected by our change of business mix, however the efforts in this area put us in a much better position for net earnings growth over the coming quarters. After peaking in the 3rd quarter of 2016 provisions have continued to come off in the last 2 quarters and our forward looking indicators give us comfort that this trend should continue during the course of 2017”.

England also commented “Other than the financial performance, the Bank has had tremendous success in a number of key areas. Our new digital banking platform launched in late 2016 has been very well received by our clients who can now enjoy the convenience of a single digital platform across all of their devices. We have seen significant improvement across the board in all our service quality indicators which has been acknowledged by receiving a number of highly recognised industry awards. During the 1st quarter we also signed agreements with both RAK SME and Dubai SME to work together to continue to support this crucial sector in the UAE economy. As the largest SME bank in the UAE, we remain firmly committed to helping small businesses grow and develop despite challenging conditions in the past 24 months. On the product side we continue to see exceptional traction on our recent product innovations such as our ‘Home in One’ Product which remains to be the only product of its type in UAE market, as well as our recently launched Fawrun deposit product from RAKislamic which has been extremely well received by our clients. The product and service pipeline for this year remains very strong, so expect to see continued product and service innovation from RAKBANK as the year progresses.” 

Total income grew 2.6% compared to the last quarter of 2016, though declined 4.4% over the comparable period in 2016. Net interest income declined as the Bank continued to change its business mix of lending, though this was offset to an extent by strong fee income growth particularly from the Bank’s Treasury and Wholesale banking activities. Operating expenses were marginally up year on year, though were marginally down in comparison to the 4th quarter of 2016 as the Bank continued its focus on cost optimisation. Impairments continued their downward trajectory from the peak in Q3 2016, declining by 4.3% from Q4 2016 though were up 10.7% from the comparable quarter in 2016.

Total Assets rose by 0.8% to AED 42.9 billion compared to the end of 2016. This was due to an increase in Gross Loans and Advances of AED 647.9 million partially offset by decrease in investments of AED 123.0 million and a decrease in lending to banks by AED 112.6 million. Gross Loans and Advances grew by 5.7% year-on-year on the back of a healthy growth in Corporate Loans. Customer deposits grew by 1.3% to AED 29.8 billion compared to the end of 2016. This growth came mainly from an increase of AED 640.6 million in demand deposits partially offset by a decrease of AED 247.4 million in time deposits. 

The Bank’s capital adequacy ratio as per UAE Central Bank regulations stood at 22.2% at the end of the first quarter of 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 the quarter was 15.5% compared to 16.9% at the end of 2016. The advances to stable resources ratio stood comfortably at 86.7% compared to 85.5% at the end of 2016.

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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 2016 was approved. 

During the meeting, attendees unanimously approved all agenda items including the Bank’s balance sheet and profit and loss statements for the financial year ended 31 December 2016. Additionally, the AGM appointed Auditors for 2017 and determined their remuneration as well as approved the remuneration of the Board of Directors. Furthermore, during the AGM, the appointment of Mr. Kantic Dasgupta as a board member was ratified to replace the resigned board member, Mr. Allan Griffiths. 

RAKBANK Chairman, HE Mohamed Omran Alshamsi, presented a review of the year ended 31st December 2016. “The drop in 2016 profit was a result of the Bank’s significant increase in provisions due to our legacy SME loan portfolio, where the global and regional economic headwinds directly impacted the local economy and the performance of our business customers. While 2016 presented many obstacles, we also made substantial progress in the implementation of our three-year strategy, particularly regarding the diversification of our business. 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 service excellence, innovation, and simplicity. Furthermore, the new business mix, which includes lower margin and lower risk products, is expected to contribute to a steadier more sustainable growth.”   

RAKBANK CEO, Peter England, said: “The Bank’s diversification strategy that commenced in early 2015 is showing exceptional results with solid growth coming in from both our Wholesale Banking and Treasury unit. We have recognised the need to move away from the Bank’s traditional legacy approach, achieving greater diversity in our balance sheet and income base to minimise the risk of focusing on specific sectors. The Bank effectively merged its online and mobile banking platforms to deliver a seamless digital experience, called RAKBANK Beyond, and we will continue to introduce innovative products and services as well as strengthen our branch and ATM network across the country. We have made significant progress in revamping our Personal Banking segments and have made substantial improvement in our revitalised Credit Card’s business. Additionally, the Bank revolutionized the market for home lending in the region with RAKBANK’s widely acclaimed ‘Home in One’ product that was successfully launched in August 2016.” 

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RAKBANK proposes a dividend of 30 fils per share for the financial year ended 31 December 2016. The proposed dividend will be presented for approval by the shareholders in the Annual General Meeting (AGM) to be held on 5 April 2017 at the Bank’s headquarters in the emirate of Ras Al Khaimah.

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The National Bank of Ras Al-Khaimah (RAKBANK) announced the financial results for the year ended on 31 December 2016. RAKBANK’s consolidated net profit is at AED 663.0 million, a decrease of AED 742.3 million over the previous year. Total Assets stood at AED 42.5 billion, an increase of 4.7% compared to 31 December 2015. On a more positive note the Group’s* operating Profit before impairment losses grew by AED 10.0 million over 2015 mainly as a result of the bank’s cost optimisation strategy which commenced in early 2016.

“2016 has been a very challenging year for RAKBANK as we have seen a significant increase of provisions especially in our legacy SME loan 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 it is understandable that RAKBANK has been significantly affected by the challenges in the SME sector brought about by a range of global and regional factors. We are however seeing some signs of improvement with provisions having peaked in the third quarter of 2016 and showing signs of improvement in the fourth quarter”, explained England.

Total Operating Income declined by AED 99.9 million to AED 3.8 billion mainly due to a decrease of AED 223.2 million in Net Interest Income predominantly due to the decline in the high margin SME Business loan book. Non-interest income grew by AED 123.3 million to AED 1.0 billion. This was mainly due to an increase of AED 132.5 million in income from investments, AED 17.7 million in insurance underwriting profit and AED 12.3 million in foreign exchange and derivative income. This was offset by a decrease of AED 27.2 million in commission income and AED 11.9 million in other income compared to 2015.

Operating costs were down by AED 109.9 million, a decrease of 7.4% from 2015. This was mainly due to a decrease of AED 68.3 million in staff costs, AED 21.7 million in outsourced staff costs and AED 11.1 million in depreciation costs. The Group’s cost to revenue ratio reduced to 35.6% compared to 37.5% for the previous year.

The provision for impairment in loans and advances increased by AED 752.3 million compared to previous year and this was due to larger payment defaults in the unsecured loan products, Business Banking and Commercial Banking segments. Total impairment provisions for the year was AED 1.8 billion compared to AED 1.1 billion in 2015.

“Overall, 2016 was a challenging year, however we made significant strides in advancing our three year Strategic plan. The Bank’s diversification strategy that commenced in early 2015 has been showing exceptional results with solid growth coming in our Corporate and Financial Institutions segments, as well as a very solid performance by our Treasury unit. We have recognised the need to move away from the Bank’s traditional legacy approach, achieving greater diversity in our balance sheet and income base to minimise the risk of focusing on specific sectors. The Bank successfully merged its internet and mobile banking platforms to deliver a seamless digital experience, called RAKBANK Beyond, and we will continue to introduce innovative products and services as well as strengthen our branch and ATM network across the country. We have completely revamped our Personal banking segments and have made significant progress in our revitalised Card business and further enhanced the market for home lending with RAKBANK’s widely acclaimed ‘Home in One’ product that was successfully launched in August of this year,” said England.

Total Assets rose by 4.7% to AED 42.5 billion compared to the end of 2015. This was due to an increase in Gross Loans and Advances of AED 1.2 billion, lending to banks which grew by AED 722.4 million and an increase in investments of AED 695.6 million. Customer deposits grew by 5.7% to AED 29.4 billion compared to 2015. This growth came mainly from an increase of AED 1.1 billion in demand deposits and AED 455.4 million in time deposits.

The Bank’s capital adequacy ratio as per Basel II before taking into consideration profit for the year 2016 stood at 21.8% by the year-end. This compares with 22.3% at the end of 2015, against a requirement of 12% set by the UAE Central Bank. This level of capital provides the Bank with ample room for growth in 2017. The regulatory eligible liquid asset ratio at the end of the year was 16.9%, compared to 19.1% the previous year. The advances to stable resources ratio stood comfortably at 85.5% compared to 83.3% at the end of 2015.

Commenting on the results, RAKBANK’s Chairman H.E. Mohamed Omran Alshamsi noted: “While 2016 presented many obstacles, we made significant progress in the implementation of our three-year strategy, particularly with regards to diversifying our business. We are placing greater emphasis on optimizing synergies within the Group to increase efficiency while supporting the diversification of our revenue streams. The Bank’s progress in 2016 positions us well for sustained profitable growth. 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 service excellence, innovation, and simplicity. We will also continue to strengthen our capacity to meet any future challenges. This has placed us in a strong position to grow in both the medium and long term. The Bank’s new business mix – which includes lower margin and lower risk products – is likely to contribute to a steadier more sustainable growth.”