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26/04/2022

• Q1 2022 net Profit up by AED 106.1 million (93.1%) compared to Q1 2021
• Total Assets increased by AED 2.3 billion year-to-date
• Gross Loans and Advances amounted to AED 35.8 billion as of 31st March 2022, an increase of 4.7% year-to-date
• Customer Deposits increased by AED 811 million year-to-date

United Arab Emirates, 26 April, 2022: The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 220.1 million for Q1 2022, an increase of 93.1% compared to the first quarter of 2021. Total Income of AED 726.9 million, decreased by 8.3% compared to the fourth quarter of 2021. As at 31 March 2022, Total Assets stood at AED 58.6 billion, increasing by 10.1% year-on-year and 4.1% year-to-date.

RAKBANK CEO, Raheel Ahmed, commented:

“Our diversification strategy is working well.  Q1 2022 net profit at AED 220.1 million is 93.1% higher compared to Q1 2021. We have delivered this very significant increase in net profit by improving our return on equity by 460 basis points to 10.5%, improving our returns on assets to 1.6%, whilst maintaining one of the highest impaired loan coverage ratio in the industry at 138%. We saw a reduction in our non-interest income driven by lower trading forex & derivatives & Investment Incomes. However, we expect that this will not be repeated in subsequent quarters. We have a strong balance sheet momentum across all lines of businesses as is evident from the 9.3% year-on-year growth in gross loans and advances. We have seen over a 20% year-on-year increase in digital engagement with customers & have seen double digit growth in both customer spends & customer payments versus Q1 2021. Continuing our journey of innovation, we launched Digital Lending for SMEs & further enhanced our SMEsouk portal - www.smesouk.com - the one stop digital platform for businesses in the UAE.”

Q1 2022 highlights

• Net Profit increased by AED 106.1 million compared to Q1 2021
• Net Interest Income increased by AED 8.7 million compared to Q1 2021
• Total Assets increased by 10.1% compared to Q1 2021
• Annualised Return on Assets stood at 1.6% and Return on Average Equity at 10.5%

Performance review

Total Assets increased year-to-date by AED 2.3 billion which translates into a growth of 4.1%, due to an increase in Gross Loans and Advances which increased by AED 1.6 billion, Lending to Banks which increased by AED 751 million, offset by a reduction in Cash and Central Bank balances by AED 128 million. Total Assets increased by AED 5.4 billion to AED 58.6 billion compared to 31 March 2021 mainly due to an increase of AED 3.1 billion in Gross Loans and Advances, AED 1.3 billion Due from Banks and AED 850 million in Investments.

Provision for Credit Loss decreased by AED 222.5 million compared to Q1 2021 and by AED 63.2 million compared to Q4 2021. Non-Performing Loans and Advances to Gross Loans and Advances ratio was 3.7% as at 31 March 2022, Net Credit Losses to average Loans and Advances ratio closed at 1.6% compared to 4.5% as at the end of the first quarter of 2021.

On a year-on-year basis, Total Operating Income declined by AED 74.0 million to AED 726.9 million. The Net Interest Income and Net Income from Shariah-Compliant Islamic Financing increased by 1.6% year-on-year largely due to the increase in assets. However, the Non-Interest Income decreased by AED 82.7 million to AED 186.5 million, mainly due to a year-on-year decrease in FOREX and Derivative Income of AED 40.8 million, AED 29.3 million in Investment Income and AED 13.6 million in Other Operating Income. This was partly offset by an increase of AED 2.1 million in Net Insurance Underwriting Profit. The reduction was largely due to one off trading losses in the proprietary book due to a sudden increase in interest rates in Quarter 1 impacting the bond book and certain derivative positions. This was further exacerbated by devaluation in foreign exchange rates in certain currencies due to macroeconomic and geopolitical reasons.

The Bank’s total Capital Ratio as per Basel III, after the application of the prudential filter was 16.5% compared to 17.0% at the end of the previous year. The regulatory eligible Liquid Asset Ratio at the end of the quarter was 11.9%, compared to 11.6% as at 31 December 2021, and Advances to Stable Resources ratio stood comfortably at 87.0% compared to 82.9% at the end of 2021.

Q2 2022 outlook

“The impact of rising interest environment, Russia & Ukraine conflict & increase in inflation will have to be managed carefully. There is also intense competition for talent globally. However the UAE economy continues to grow strongly & there has been a significant improvement in both business & consumer sentiment. At RAKBANK we will continue to rapidly accelerate our focus on delivering personalized & convenient financials solutions for our clients whilst providing brilliant customer experience at all touch points.” said Raheel Ahmed. “We strongly believe that whilst continuing to build secure digital solutions is critical, so is ensuring that our colleagues are always there to support our customers, when needed. We are investing in both to deliver ‘Simply Better’ banking.”

Financial Highlights

Increase in Net Profit by over 93%

Income Statement Highlights

Double Digit Increase in Total Assets

Marked improvement in Return on Equity & Return on Assets

*Annualized
**After application of Prudential Filter  
 

Lending in Wholesale Banking increased by AED 1.3 billion, Retail Banking segment increased by AED 104 million and Business Banking lending increased by AED 238 million compared to 31 December 2021. 

Customer deposits increased by AED 811 million to AED 38.5 billion compared to 31 December 2021 mainly due to increase of AED 322 million in time deposits and AED 489 million in CASA accounts.

RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown clearly in the table below. Fitch Ratings recently rated RAKBANK at 'BBB+', with a stable outlook. This rating reflects the institutional strength of the Bank that is backed up by trust and transparency in financial reporting.
 

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). 

Furthermore, RAKBANK believes that long-term financial growth requires a thorough integration of sustainability with its core business strategy. We intend to consistently improve Environmental, Social and Governance (ESG) practices throughout RAKBANK’s operations. The Bank’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). For more details on the Bank’s ESG Framework and Approach the Bank urges the public to read the RAKBANK 2021 Annual Integrated Report.

04/04/2022

United Arab Emirates, 04 April 2022 – RAKBANK announces the launch of a “first of its kind” digital onboarding experience in the region which will enable SMEs to apply for Business Loans, Term and Working Capital Finance and Asset based finance through the RAKBANK Quick Apply portal: quickapply.rakbank.ae/business/finances. 
 
SME customers can now not only apply for Business Accounts but also Business Finance products in just a few minutes and get instant in-principal approval followed by the funds disbursal in just a few days, without having to visit a branch or sales office. 

This initiative is in line with the Bank’s strategy to improve its customer experience through simple and convenient digital solutions and follows the recent enhancement of its SMEsouk platform which is a one-stop digital marketplace for all SMEs. 

Through the SMEsouk platform – www.smesouk.com, existing and budding entrepreneurs can set up their business from getting a trade license to opening a bank account with easy toolkits, grow it further with curated partnerships and exclusive offers and expand their community through events, webinars and a marketplace to list their products and services.

Raheel Ahmed, CEO at RAKBANK commented: “At RAKBANK, we understand that SMEs are the true heart of every growing economy. That's why we are building a digital ecosystem where SMEs can connect to setup, grow their business and expand their community in a seamless and quick way. The digital onboarding for business loans and finance along with the SMEsouk initiative reaffirms the Bank’s commitment to the SME community and bolsters our efforts to become an integrated, technology-enabled, and customer-centric financial services provider”. 

22/02/2022

United Arab Emirates, 22 February 2022 – The National Bank of Ras Al Khaimah (RAKBANK) signed a Memorandum of Understanding (MoU) with Tradeling, the hyper growing e-marketplace focused on business-to-business (B2B) transactions in the Middle East and North Africa. The MoU aims at providing enhanced value offering to RAKBANK Business Cardholders. 

The partnership with Tradeling offers RAKBANK and RAKislamic Business cardholders access to preferential buying terms across all categories on their website, Tradeling.com. It results in a smooth process for the Bank’s SME customers whereby they can streamline their procurement process, maximize their earning potential, benefit from competitive prices, and free domestic shipping within the UAE for one Year.

Tradeling’s platform further leverages advanced technology to optimize the supply chain processes, creates economic value as well as mitigates risks for small businesses. It is in line with RAKBANK’s strategy of building the necessary ecosystem and infrastructure for SMEs to develop sustainably. The MoU provides RAKBANK SMEs instant access to an online marketplace and platform that directly supports their goals and objectives of growing their business locally, regionally, and internationally. 

Commenting on the partnership Marius Ciavola, CEO of Tradeling, said: “Our long term partnership with RAKBANK will expedite the growth of SMEs in UAE through various trade finance solutions that offers easy payment options and discount rates designed specifically to tackle the hurdles faced by B2B buyers and sellers.”

He added: “We are constantly working on offering the best and most profitable solutions for our customers to further expand their reach by connecting sellers and buyers from different parts of the world and enabling them to continue operating in a seamless and efficient manner, all while utilizing the financial benefits available on our platform.”

For his part, Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said: “This partnership is in line with our strategy of providing Digital services and platform lending to SMEs. Through this partnership, our customers will be able to unlock valuable opportunities to connect to B2B sellers and buyers from around the world. E-commerce has become a significant growth tool for any business in today’s climate, and Tradeling’s platform offers SMEs an ideal gateway to a wider customer base across the region to gain broader recognition for their products and services”.

Tradeling has recorded impressive growth in the last two years. Led by a team of experienced technology startup builders, Tradeling ensures a reliable and smooth trade process in addition to providing logistics and financing solutions. Connecting global suppliers with MENA-based demand, the platform leverages advanced technology to optimise the supply chain and creates economic value in addition to mitigating risks. Today, Tradeling has over 100,000 registered buyers and sellers from over 55 countries.

01/02/2022

• RAKBANK’s Full-Year 2021 Net Profit increased by AED 252.9 million, a 50% increase over 2020
• The Bank’s Total Assets increased by 6.7% to AED 56.3 billion during 2021
• Gross Loans and Advances amounted to AED 34.2 billion as of 31st December 2021, a year-on-year increase of 6.1%
• The Bank’s Non-Interest Income grew by 2.3% year-on-year

United Arab Emirates, 01 February, 2022: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 758.3 million for the Full-Year 2021, resulting in an increase of AED 252.9 million when compared to the previous year. The Bank’s Total Assets amounted to AED 56.3 billion, increasing by 6.7% over 2020. In addition, the Gross Loans and Advances closed at AED 34.2 billion, a year-on-year hike of 6.1%. 
Similarly, Customer Deposits grew by 1.9% and this is due to the growth in Time Deposits by 7.4% compared to the previous year, amounting to AED 660.1 million. Similarly, the Return on Average Assets Ratio closed the year at 1.4% compared to 0.9% for the previous year and Return on Average Equity was 9.5%, compared to 6.5% in 2020.  
The Board of Directors recommended distribution of a cash dividend of 22.5 fils per share for the shareholders’ consideration and approval at the Annual General Meeting (AGM).

RAKBANK CEO, Peter England, commented: “RAKBANK had a strong finish to 2021, driving Net Profit for the year up to AED 758.3 million. We continue to transform our Bank with a focus on simplification, digitalization and building a culture of excellence. Throughout these past years, we have seen that RAKBANK’s resilience and nimbleness enabled us to offer sound support to our customers throughout the pandemic, with the help of the country’s regulators. Income growth has been a challenge in 2021 as a result of very little business activity during 2020. However, we saw this gradually turn around as the year progressed and the business momentum in the second half of 2021 reflected positively on the Bank’s performance. On Asset Quality, we have seen a significant improvement and our Provisions for 2021 are the lowest they have been in the last 6 years, indicating a strong rebound in the economy and the success of our business diversification strategy that we commenced in 2015.”

FY 2021 highlights 

• Net Profit is up 50.0% compared to the previous year.
• Year-on-year increase in the Annualized Return on Assets amounting to 1.4% and Return on Equity to 9.5% respectively for the full year 2021. 
• Non-performing Loans and Advances to Gross Loans and Advances Ratio improved to 4.1% as at 31 December 2021.  
• Provision Charges for Credit Loss decreased by 35.3% year-on-year.

Performance review

Total Income for the financial year ended 31 December 2021 amounted to AED 3.2 billion, which decreased by 9.4% as compared to the same period of the previous year. Net Interest Income and Net Income from Islamic Finance stood at AED 2.2 billion for the year 2021, decreasing by 14.1% year-on-year. Non-Interest Income increased by AED 23.7 million year-on-year to AED 1.1 billion, mainly due to an increase of AED 54.1 million in Net Fees and Commission Income. Operating Expenses remained the same year-on-year and the Cost to Income Ratio closed at 43.2% for the year. 

Gross Loans & Advances increased by AED 2.0 billion to AED 34.2 billion, which is a rise of 6.1% year-on-year resulting in an increase in the Bank’s Total Assets by 6.7% to AED 56.3 billion compared to 31 December 2020. Whereas, Customer Deposits grew by AED 702.8 million to AED 37.6 billion, a 1.9% increase compared to 31 December 2020. 

Asset quality
Provision Charges for Credit Loss decreased by AED 586.6 million (FY 2021 Vs FY 2020), which is a 35.3% decrease year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances Ratio closed at 4.1% for the Full-Year 2021 compared to 5.2% as at 31 December 2020. RAKBANK is well provisioned against Loan Losses with a Loan Loss Coverage Ratio of 133.7%, excluding mortgaged properties and other realizable asset collateral available against loans. 

Capitalization and liquidity
The Bank’s Total Capital Adequacy Ratio as per the Central Bank of the UAE regulations and as per Basel III stood at 17.0% at the end of December 2021. The Common Equity Tier 1 ratio of the Bank stood at 15.9%. The Loans to Stable Resources Ratio LSRR as at 31 December 2021, stood at 82.9% compared to 80.7% at the end of 2020, which is significantly lower than the maximum limit of 110%. The regulatory eligible Liquid Asset Ratio of the Group stood at 11.6% at the end of December 2021 compared to 14.5% at the end of 2020, which is well above the minimum requirement and reflects a healthy liquidity position. 

RAKBANK’s Chairman, H.E. Mohamed Omran Alshamsi, commented: “RAKBANK’s financial performance this past year yielded tangible results despite the operating environment of 2021. Looking back, during the first half of the year, the UAE economy was recovering from the impacts of COVID-19. However, the second half resulted in a complete turnaround, and this applied to RAKBANK as well. Just as the UAE economy continued to swiftly rebound, RAKBANK has demonstrated a similar form of resilience in 2021 underpinned by the Bank’s diversification strategy. It has become evident that we are well positioned for strong and sustainable growth in the years ahead. Our core business is primed to continue its steady growth on the back of rising Retail and SME activities. Additionally, throughout this past year, RAKBANK focused on investments specifically in digitising the customer journey as we believe that it will drive efficiency and unlock access to attractive new segments. Lastly, I would like to announce that as of February 2nd 2022, Mr Raheel Ahmed will officially assume his responsibilities as the Chief Executive Officer of RAKBANK, as his designated handover period is now complete.” 
 

Financial highlights

Income statement highlights

Balance sheet highlights

Key ratios highlights

The Wholesale Banking and Financial Institutions lending was up by AED 1.5 billion compared to 2020 and Personal Banking’s Loan Portfolio also increased by AED 709.9 million. However, the Business Banking Loan Portfolio declined by AED 262.3 million compared to the previous year.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:
 

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). 

16/12/2021

United Arab Emirates, 16 December 2021: The National Bank of Ras Al Khaimah’s (RAKBANK) Board of Directors appointed Mr. Raheel Ahmed as the new Chief Executive Officer. He will join RAKBANK on 3rd of January 2022 and will take over as CEO during the first quarter of 2022, after the designated handover period is completed. Raheel succeeds Peter England, who will retire to Australia after successfully leading the Bank for over 8 years. 

Raheel is a seasoned banker & transformational leader with over 30 years of banking experience across Europe, Asia, Middle East & Africa. He has held senior executive positions at Standard Chartered, Citigroup and Barclays. He has also served as a board member of companies at Standard Chartered and Barclays. 

Raheel joins RAKBANK from Barclays UK where he was member of the Executive Committee & the Chief product & analytics officer, responsible for the strategy & commercial performance of the personal banking products. He was also the executive sponsor of Diversity & Inclusion for Barclays UK, a topic that he is passionate about. During his time at Barclays Raheel led the Digital & Analytics transformation to create personalized and frictionless products and services for over 20M customers. He built and led on strategic partnerships with Big Tech & Fin Tech firms & contributed significantly to the automation & digitalization of Barclays UK. 

Raheel is no stranger to the UAE, prior to joining Barclays he was based in Dubai with Standard Chartered Bank as the Regional Head of Consumer Banking for Middle East & Africa.

As the Bank’s new CEO, Raheel aims to accelerate the achievement of RAKBANK’s vision by developing & executing strategies that enable the Bank to grow profitability & win market share in an environment where customer expectations is rapidly changing; whilst aspiring to be best in class in customer engagement. 

“Raheel is an accomplished leader and we are more than delighted that he will be joining the Bank. He is a versatile and experienced banker who joined us from Barclays bank in the UK where he was the Chief Product and Analytics Officer, responsible for the strategy and commercial performance of the Personal Banking and Barclaycard businesses.” Said H.E. Mohamed Omran Alshamsi, Chairman of RAKBANK. “Raheel is strategic, yet detail oriented; and has the ability to lead high-performing teams. We are confident that he will help further strengthen our Bank and grow its presence in the UAE and specifically in Ras Al Khaimah. I would also like to take this opportunity to thank Peter England for leading RAKBANK for over eight years. During that time and under his leadership, the Bank has significantly grown and flourished. Peter’s contribution to the sustained profitability, diversified revenue streams and sound corporate governance is highly commendable. I wish him the very best in his future endeavors.”
 

“It is my privilege & honor to have been chosen by the Board to lead RAKBANK for the next phase of its growth and transformation said the new CEO of RAKBANK, Raheel Ahmed. “RAKBANK is known for its innovation & customer focus. I am excited by the opportunities in front of us to support the customers & businesses that we serve even more impactfully. A big part of my job will be to enable our team to bring innovative products & services to the market at speed thereby further strengthening our position in the UAE & in Ras Al Khaimah. We will aim to do so by providing ‘Simply Better’ products and services by leveraging the combined power of our brilliant colleagues, digital technology & advanced analytics whilst embracing the highest standards of corporate governance.”

12/12/2021

Jafza collaboration with RAKBANK will provide free zone companies with access to instant banking solutions through a dedicated digital portal

The National Bank of Ras Al Khaimah (RAKBANK) signed a Memorandum of Understanding (MoU) to form a Strategic Alliance with Jebel Ali Free Zone (Jafza), the leading trade and logistics hub of the UAE. This partnership aligns with both the organizations’ strategy of supporting SMEs and further developing a sustainable economy.

As part of the agreement, RAKBANK will offer SMEs that operate in Jafza instant access to the Bank’s solutions and services. Among the products offered to SMEs in the free zone are the RAKstarter account, Business Current Account, and priority service banking with the RAKelite Business. As for financing, the Bank will offer Business loans, Point of Sale financing, Term and Working Capital financing, Real Estate financing, Asset-based financing, and Cash Management services.

Jafza is the largest free zone in the region for trade and logistics and home to a dynamic base of entrepreneurs and large corporates which benefit from Jebel Ali’s unrivalled logistics infrastructure and services. The cooperation with RAKBANK and Jafza further enhances Jafza’s integrated ecosystem for companies to establish and grow their activities with all the support required delivered directly to them through the digital channels. SMEs in Jafza will also benefit from RAKBANK's deep understanding of SME requirements and sophisticated data analytics to support SME’s banking needs.

The MoU will facilitate businesses in Jafza to enjoy a 100% digital and fast account opening process with RAKBANK and have access to additional essential banking services. 

Commenting on the partnership, Ahmad Al Haddad, Chief Operating Officer – Parks and Zones, DP World UAE, said: “Our partnership with RAKBANK comes at a crucial time where SME formation is at an all-time high. The UAE economy is on a strong growth trajectory, as evidenced by key economic indicators. At the same time, Jafza witnessed robust new customer growth of nearly 40 per cent year-on-year in H1 2021. This collaboration will benefit our diverse customer base of nearly 9,000 customers who can seamlessly access RAKBANK’s services. The agreement will also increase Dubai’s competitiveness by addressing a key pain point that global businesses have highlighted.”

For his part, Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, commented: “The collaboration with Jafza is a natural next step in how RAKBANK seeks to enhance its collaboration with the prestigious free zone. We aim to constantly provide SMEs with the financial solutions and digital services they need. This signing reaffirms the Bank’s commitment to offering SMEs simple and convenient banking as they are the backbone of the UAE economy”. 

The MOU comes at a time when the UAE economy is accelerating growth as the world recovers from the impacts of the pandemic.  The agreement was signed by Ahmad Al Haddad, Chief Operating Officer – Parks and Zones, DP World UAE and Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK.
 

31/10/2021

Ras Al Khaimah National Insurance Company (RAKINSURANCE), a subsidiary of RAKBANK, is pleased to announce the re-opening of its branch located in the heart of Ras Al Khaimah, Al Nakheel. The location is a suburban district in Ras Al Khaimah that is easily accessible by car or public transportation. The branch working hours are between 8:00AM and 4:30PM (Sunday to Thursday). 

RAKINSURANCE branches are situated across the UAE in prime locations and cater to over 740,000 customers with protection that spans medical, motor and life insurance. Additionally, the Company also provides the required insurance services to a portfolio of more than 43,000 of its Corporate and Retail clients. It has a strong presence in the Emirate of Ras Al Khaimah, with branches operating in Dubai and Abu Dhabi.

“RAKINSURANCE is always striving to cater to customers across all the main locations in the UAE especially ones with heavy footfall. The reopening of our Nakheel branch is in line with the company’s commitment and continuous effort to improve our customer experience by delivering solutions that align with their needs and maximizing the value they get from our products and services.” said Ewen J. McRobbie, CEO RAKINSURANCE. 

From his part, Peter England, CEO of RAKBANK commented: “The group’s strategy is to constantly offer a combination of both convenient locations in the UAE and outstanding digital experiences that deliver a cohesive journey for the customer. The opening of the RAKINSURANCE branch in the heart of our Home Emirate is in line with the Group’s plan to expand its network and to explore and develop major Corporate and Individual relationships in Ras Al Khaimah and the UAE.”

The re-opening goes hand in hand with the company’s “Simply Better” approach to address the growing demand for retail insurance solutions and to assure an outstanding customer service. 

27/10/2021

• Net Profit surged by 73.2% compared to the third quarter of 2020; up by 21.9% year-to-date
• Gross loans and advances up by 2.7% to AED 33.5 billion compared with the third quarter of 2020; up by 4.0% year-to-date
• Total deposits stood at AED 37.0 billion, up by 8.1% year-on-year
• Non-interest income up by AED 24.1 million compared to same period last year
• Provisions for the nine months of 2021 dropped by 31.7% year-on-year

United Arab Emirates, 26 October 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 534.7 million for the nine-month period ended 30 September 2021, compared to the net profit of AED 438.6 million for the same period last year. The Total Assets equated to AED 54.5 billion as at 30 September 2021, increasing by 4.1% year-on-year and by 3.3% year-to-date.   

There are several factors that led to the spike in the Net Profit throughout the year, which include a reduction in the Provisions for Credit Loss along with an increase in Non-Interest Income to AED 258.9 million on the back of a growth in the Net Fee and Commission Income by AED 14.0 million as well as an increase in Other Operating Income by AED 17.5 million. 

RAKBANK CEO, Peter England, commented: “We have seen a continual improvement in asset quality at RAKBANK especially in the last 2 quarters, which has led to a significant improvement in profitability. We have already surpassed our full year 2020 profit numbers in the first 3 quarters of this year. The improvement in asset quality has come about due to the change of mix in our loan book, which we have been gradually implementing over the last few years, and also the significant improvement in the macro-economic environment due to the exemplary handling of the COVID-19 pandemic by the Leadership of the UAE. We see these very positive trends continuing into the 4th quarter which will bode well for a strong start to 2022.”  

Performance review YTD 2021
Total Income decreased by 11.5% to AED 2,438.1 million, compared to the same period last year, mainly due to a decrease in Net Interest Income and Net Income from Islamic financing by AED 342.5 million on account of the lower mix of high yielding assets. This was partially offset by higher Non-Interest Income of AED 24.1 million.

Net Interest Income and Net Income from Shariah-Compliant Islamic financing weakened by 17.4% year-on-year to AED 1,621.3 million and the Non-Interest Income increased by 3.0% to AED 816.8 million, as a result of the year-on-year increase of AED 34.0 million in Net Fees and Commission Income, AED 14.0 million in Investment Income and AED 19.2 million in Other Operating Income. This was partially offset by lower Forex and Derivative Income by AED 32.0 million and lower Gross Insurance Underwriting Profit by AED 11.1 million.

Asset 
Total Assets increased by AED 1.7 billion or 3.3% year to date and by AED 2.2 billion year-on-year mainly due to the increase in Investment Securities by AED 2.1 billion and in gross Customer Loans & Advances increased by AED 884.4 million. 

Asset quality
Provisions for Credit Loss decreased by AED 407.2 million year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 4.5% compared to 5.2% as at 31 December 2020. Additionally, the annualised Net Credit Losses to Average Loans and Advances ratio closed at 3.6% compared to 4.9% year-to-date through September 2020. 

Capitalization and liquidity
The Bank’s Capital Adequacy ratio as per Basel III was 17.8% compared to 18.6% as at the end of the previous year. The Common Equity Tier 1 ratio of the Bank stood at 16.7%. The regulatory eligible Liquid Asset ratio was 10.4% as at the end of September 2021. The Advances to Stable Resources ratio stood comfortably at 83.9%.

“RAKBANK continues to focus very heavily on its digital transformation and we are increasingly focused on delivering simpler and more convenient banking solutions. We are seeing great traction on our ‘Skiply’ app, which is now being used by over 100,000 families in the UAE access 180 educational institutions who don’t even need to be a RAKBANK customer to benefit from the proposition.” said Peter England. “We have also seen great success in our partnership with YAP that has developed a unique app based banking solution that allows new customers to open and operate RAKBANK accounts and benefit from a range of products and services provided by YAP and RAKBANK. This focus on digitalisation, innovation and partnerships will continue to grow and develop strongly in 2022 and beyond.”  

Financial highlights

Income statement highlights

Balance sheet highlights

Key ratios highlights

 *Annualised
**After application of Prudential Filter  

Total Assets increased by AED 1.7 billion to AED 54.5 billion compared to 31 December 2020, mainly due to an increase in Gross Loans and Advances by AED 1.3 billion, Investments by AED 1.7 billion and Due from Banks by AED 1.3 billion offset by a reduction in Cash and Balances from Central Bank of the UAE by AED 2.2 billion. The increase in Loans and Advances compared to 31 December 2020 is due to an increase of AED 568.6 million in Wholesale Banking loans, increase of AED 940.9 million in Retail Banking loans offset by a reduction of AED 234.6 million in Business Banking loans. 

Customer Deposits increased by AED 43.5 million to AED 37.0 billion compared to 31 December 2020, mainly due to an increase in Time Deposits of AED 1,026.5 million. This was partly offset by a decrease of AED 982.9 million in CASA accounts.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:
 

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI). 

06/10/2021

RAKBANK today announced that it has partnered with Mastercard, a leading technology company in the global payments industry to launch firefly – a first of its kind companion app for the RAKBANK Emirates Skywards World Elite Mastercard Credit Card.  

With the firefly app, customers will never miss out on what matters to them. The app brings customers bespoke experiences and real time offers that best suit their interests and lifestyle at home and abroad so they can make the most of their card benefits.

Customers can enjoy the seamless experience offered by the app right from the simplified on-boarding process using the card scanner within the app. Built on a custom-developed recommendation engine, the app offers a fully personalized experience based on user preferences and behaviour. The content is then curated & tailored to customers’ interests contextual to their location through relevant messages thereby enriching their experience at home or while they travel.

“Never have the fear of missing out with the firefly app,” said Banali Malhotra, Director – Marketing, RAKBANK. “Thanks to firefly, not only will customers have all their Card benefits under their fingertips but also they will be able to access discounts of 50% and above over 5000+ offers across categories like Food, Health & Wellness, Travel & Entertainment, Shopping, Services, Jewellery & Watches and more. They can explore what is trending within the app and search and save great deals by their location. It is a true companion app for the discerning traveller.”

“Over the years, the Bank managed to transform the concept of credit card programs in the UAE through a host of unique features and now we are offering firefly - an ingenious API integrated Smart App 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 Mastercard and their Fintech Startup Nuclei will help us enhance our customers travel experience at every stage through this companion App as well as access all the lifestyle offers and benefits of their RAKBANK Emirates Skywards World Elite Mastercard Credit Card at home and abroad.” 

“As the UAE continues to make strides in its digitization agenda, consumers are constantly looking for personalized and tailored experiences that offer them the best in rewards. In response to these evolving trends, Mastercard and RAKBANK are launching a one-of-its-kind offering in the market that will transform the payment experience for our cardholders. The new app will serve as a one-stop-shop that enables access to curated offers and tailored rewards uniquely suited to individual preferences. We are proud to work with our long-time strategic partners in making every day spends for consumer safe, secure and rewards,” said Girish Nanda, Country Manager, UAE and Pakistan, Mastercard.

03/10/2021

Dubai, United Arab Emirates, 03 October 2021: In its constant efforts to contribute and promote a sustainable environment, the National Bank of Ras Al Khaimah (RAKBANK) signed an agreement with Ras Al Khaimah Municipality to launch green financing solutions in Ras Al Khaimah. The Municipality oversees the implementation of Ras Al Khaimah Energy Efficiency and Renewables Strategy 2040, which drives and promotes sustainability as a source of competitiveness for the emirate, by reducing the cost of energy and water for businesses, residents and the government. The agreement facilitates several financing options at preferential rates for green housing initiatives, green auto industry, as well as green personal financing solutions. 

The Bank aligned its vision with that of the Ras Al Khaimah government by supporting Barjeel, the green building regulations of the emirate that aims to reduce 30% of energy and water consumption of new buildings. RAKBANK will offer an exclusive green mortgage loan at a competitive interest rate – to salaried and self-employed customers interested in buying Barjeel compliant homes with residual financing options, free pre-approvals, attractive discounts on processing and valuation fees, minimal paperwork and more.

RAKBANK will also present to customers based in Ras Al Khaimah with the ability to gain instant access to green auto loans on the condition that they purchase an electric or hybrid vehicles from Ras Al Khaimah based dealers at extremely competitive interest rates, including exclusive discounts on insurance rates. Furthermore, the Bank will extend, to Ras Al Khaimah based customers,  a new personal loan at exclusive rates, to finance various green initiatives, such as, solar panel installations and purchase of energy efficient appliances, equipment and devices from licensed vendors in Ras Al Khaimah.

Commenting on the Green Loan Agreement, Peter England, CEO of RAKBANK said: 
“In line with RAKBANK's environmental values of Preservation of Natural Resources, the Bank is proud to partner with the Ras Al Khaimah Municipality to encourage UAE Nationals and Expatriates alike to purchase a Barjeel compliant house, an electric or hybrid car, or even undertake home improvement projects to install solar panels that ultimately aim at reducing energy, water and gas consumption. At RAKBANK, we believe that our long-term success as a national bank lies in growing people’s trust in us by increasing our social responsibility towards our community and especially our environment.”

H.E. Munther Mohammed Bin Shekar, Director General of Ras Al Khaimah Municipality, said: “Our collaboration with RAKBANK to expand green finance in the emirate is one of the many steps we are taking to encourage sustainable lifestyles and business practices in Ras Al Khaimah. With this initiative, buying green becomes cheaper and more accessible. We would like to encourage residents and businesses who are about to invest in a new building or in improvements of their existing buildings, purchasing solar systems or new electric or hybrid vehicles, to explore how this initiative can help. Introduction of green financing practices is expected to draw more participation to our sustainability programs and therefore accelerate achievement of our strategic goals.”

The collaboration is expected to promote more sustainable purchase behaviors among residents and businesses, which in turn will contribute to the broader sustainability targets of Ras Al Khaimah, as part of the Ras Al Khaimah Energy Efficiency and Renewables Strategy 2040. The Strategy, established under the patronage of His Highness Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah, targets 30% energy savings, 20% water savings, and 20% contribution of electricity from renewable sources by 2040.  

29/09/2021

The Webinar was hosted in partnership with Schroders

United Arab Emirates, 29 September 2021: The past couple of years have witnessed a shift in investor behaviour whereby investors started looking into different forms of sustainable finance options based on Environmental, Social and Governance (ESG) factors before deciding where to invest. 

While the general forms of sustainable finance are more or less common, the terminology and practices associated with ESG investing vary considerably. Therefore, The National Bank of Ras Al Khaimah (RAKBANK) decided to host an informative webinar session that was in partnership with Schroders, a global asset management company, through which they tackled main topics related to ESG factors that influence today’s world of investment. 

The webinar provided a platform for a large audience from existing and potential customers to gain further understanding around the practical aspects of the global ESG frameworks, policies and key factors impacting the investment trends. Additionally, Schroders covered topics such as increased incentives and business opportunities with regards to ESG.  

Peter England, CEO of RAKBANK, commented: “The Bank’s partnership with Schroders represents an important step in further strengthening RAKBANK’s position as a trusted financial partner for its ELITE banking customers. The educational webinar that we hosted gave the audience independent views on investment market trends, with a focus on topics related to ESG. This supports the Bank’s strategy of enhancing its offerings to help our customers as well as potential customers achieve their financial goals.”  
   
For his part, Kieron Franklin, Director of ELITE Banking and Wealth Management at RAKBANK, said: “At RAKBANK, we are committed to transparency and to provide customers with the necessary tools that truly meet their needs, not only to build their wealth but protect it as well. This is why we regularly host webinars and educational platforms that enhance our customers’ knowledge on latest trends such as ESG and their direct impact on investor behaviour. Partnering with Schroders for this webinar was a natural choice given their extensive knowledge about ESG in the region, as well as our aligned vision.”

ESG investing has been growing in popularity for some time, and is hitting mainstream now. Therefore, this virtual event was an opportunity to shed some light on how ESG practices are integral to build a responsible business environment and create long term value for customers and stakeholders alike. 

14/09/2021

Dubai, United Arab Emirates, 14 September 2021: In its constant efforts to promote cashless economy, Emirates Digital Wallet adds RAKBANK to its nationwide cashless ecosystem, klip. Emirates Digital Wallet, spearheaded by the UAE Banks Federation, operates klip with an aim to reduce the use of physical cash and supports the UAE government's efforts to drive digital transformation. 

Peter England, RAKBANK’s CEO, commented: 
“The use of traditional payment methods that rely on cash are progressively becoming obsolete, especially during this past year where the pandemic has directly influenced people’s behavior when it comes to physical contact with cash. It is important to invest in and grow in line with the needs of people in the UAE by offering convenient and integrated payment solutions that allow the development of a cashless society. RAKBANK is committed to the early adoption of the latest technologies and focuses on staying ahead of the global banking trends. In this regard, we are very pleased to be working with Emirates Digital Wallet, to provide safe and seamless digital payments options to our customers.”

Aref Al Ramli, CEO Emirates Digital Wallet stated: 
“We are fully committed towards achieving cashless economy and the new wave of banks joining the klip ecosystem is a testament of our efforts in the development and operations of state of the art nationwide cashless platform. Our strong growth in customers enrolling for klip and nationwide merchant acceptance with the help of our member banks uniquely position us to drive the conversion from physical cash to digital means thus empowering customers with an instant, safe and seamless mode of payment and more affordable acceptance option for merchants.”

“UAE economy has shown great resilience during Covid-19 and businesses have quickly responded to the unprecedented circumstances through the adoption of digital mode of payments. The change in user behavior will continue to evolve and we are expecting to see continuous growth in cashless payments.” – Aref concluded.

27/07/2021

• Total Income for Q2 2021 increased by 3.9% compared to Q1 2021
• Non-interest income increased by 3.1% to AED 557.9 million compared to H1 2020
• Gross Loans and Advances amounted to AED 33.2 billion, an improvement of 3.1% year-to-date
• Non-Performing Loans ratio improved to 5.1% compared with March 2021 and December 2020

United Arab Emirates, 27th July, 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) has announced a consolidated Net Profit of AED 306.0 million for the first half of 2021. The Net Profit for the second quarter of 2021 amounted to AED 192.1 million, resulting in a 25.4% increase compared to the second quarter of 2020. This positive trajectory was also reflected in the Bank’s Total Income for the second quarter of 2021, amounting to AED 831.8 million, which resulted in an increase of 3.9% compared to the first quarter of 2021. The Total Income for the first half of 2021 stood at AED 1.6 billion. As of 30 June 2021, Total Assets amounted to AED 54.3 billion up by 2.9% year-to-date and an increase of 2.0% compared to the first quarter of 2021. 

RAKBANK CEO, Peter England, commented: "Q2 2021 has been a very strong quarter for us. We have seen Total Income commence growth again after a number of quarters of decline since the beginning of the pandemic. This is a crucial turning point for us as we see growth in our loan book and customer deposit and that is a very positive sign. Additionally, our provisions for this quarter are the lowest they have been for many years as we see the re-balancing of our portfolio, which we have undertaken over the years, bear very positive results. It also demonstrates the significant rebound in the UAE economy and a strong return of consumer confidence that we have witnessed during the first half of this year.”

Performance highlights: 

• Q2 2021 Net Profit of AED 192.1 million is up by 68.5% compared to Q1 2021
• H1 2021 Operating expenditures reduced by 4.7% year-on-year
• Gross Loans & Advances increased by 3.1% year-to-date
• Total Deposits at AED 37.0 billion, up by 5.6% year-on-year
• Annualised Return on Assets and Return on Average Equity stood at 1.2% and 7.8% respectively 

Performance review

Total Income for the first half of 2021 decreased by 14.2% to AED 1,632.7 million as compared to the same period of the previous year. This is mainly due to a decrease in Net Interest Income and Net Income from Islamic products by AED 287.9 million that was partially offset by an increase of AED 16.7 million in Non-Interest Income. Non-interest income increased by 3.1% to AED 557.9 million because of the year-on-year increase of AED 20.0 million in net fees and commission income and AED 28.0 million in Investment income, which was partially offset by decline of AED 23.1 million in forex and derivative income and AED 10.0 million in Gross insurance underwriting profit.

Total Income for Q2 2021 increased by 3.9% as compared to Q1 2021, mainly due to a boost in Net Interest Income and Net Income from Islamic products by AED 11.3 million as well as a rise of AED 19.6 million in Non-Interest Income. The increase in Net Interest Income and Net Income from Islamic products is due to the increase in loans and advances, due from banks and investments. Non-interest income grew mainly due to an increase of AED 8.1 million in net fees and commission income, AED 22.9 million in forex and derivative income, AED 10.0 million in Gross insurance underwriting profit offset by a reduction of AED 8.7 million in Investment Income and AED 12.6 million in Other Income.

Assets

Total Assets increased by AED 1.5 billion to AED 54.3 billion compared to 31 December 2020 with major growth in loans and advances by AED 1.0 billion, investments up by AED 949 million and bank placements is up by AED 2.3 billion offset by a reduction in excess funds parked with the Central Bank of the UAE.

Asset quality

Provisions for credit loss for the quarter decreased by AED 114.4 million compared to Q2 2020 and AED 237.8 million for H1 2021 compared to H1 2020 largely due to lower IFRS 9 provisions across most products and segments. Provisions for credit loss were lower by AED 60.4 million in Q2 2021 compared to Q1 2021. Non-performing Loans and Advances to Gross Loans and Advances ratio improved to 5.1% compared to 5.4% as at 31 March 2021 and 5.2% as at 31 December 2020. The Bank is well provisioned against loan losses with a loan loss coverage ratio of 127.7%, which does not take into consideration mortgaged properties and other realizable asset collateral available against the loans.

Capitalization and liquidity

The Bank’s total Capital Ratio as per Basel III, after the application of the prudential filter was 17.8% compared to 18.6% at the end of the previous year. The regulatory eligible liquid asset ratio at the end of the quarter was 9.6%, and advances to stable resources ratio stood comfortably at 83.7% compared to 80.6% at the end of 2020.

H2 2021 outlook

“Our strong Q2 result marks the beginning of a turnaround for RAKBANK after a very challenging 12 months when the pandemic commenced in March last year” said Peter England. “The entire team and the Board have worked tirelessly to safeguard the Bank’s franchise value and help our customers through challenging times and we are very encouraged with the signs we are seeing both for RAKBANK and the broader UAE economy going forward. We expect to see continual improvement in the coming quarters with sustained income growth, lower provisions and sound cost control. We also continue to win accolades for our customer service and will continue our focus on new digital innovation in all areas of our business” added England.

Financial highlights

Income statement highlights

05/07/2021

Dubai, July 05, 2021 – The National Bank of Ras Al Khaimah (RAKBANK) signed a Memorandum of Understanding (MoU) to form a Strategic Alliance with one of the leading investment destinations in the country, Ajman Free Zone. The signed MoU is in line with both the organizations’ strategy of supporting SMEs and further developing a sustainable economy.

As part of the deal, RAKBANK will offer SMEs and larger businesses that are based in the Ajman Free Zone easy and direct access to account opening services, loans, credit facilities, and other banking solutions. Among the products offered to Ajman Free Zone clients are the RAKstarter account, Business Current Account, as well as the priority service banking at preferential pricing called RAKBANK Business Elite. As for the financing products, the Bank will offer Business loans, Point of Sale financing, Term and Working Capital financing, Real Estate financing, Asset based financing, as well as Cash Management services.

By working closely together, startups and businesses based in the Ajman Free Zone will benefit from the combined capabilities of RAKBANK's deep understanding of SME requirements, sophisticated data analytics to support SME’s needs as well as digital prowess, and Ajman Free Zone’s best-in-class expertise pertaining to setting up a business and know-how in customizing high-quality, tailored solutions for all clients to set up a sustainable business model.   

Commenting on the partnership H.E. Eng. Ali AlSuwaidi, Director General of Ajman Free Zone, remarked: “We commend RAKBANK for its proactive efforts to help empower SMEs and large businesses. SMEs play a significant role in driving social and economic development of the country and Ajman Free Zone is committed to supporting them through strategic partnerships that facilitate their business operations. Through this MoU, we hope to bring key incentives and affordable financing solutions to the Ajman Free Zone business community, which reflects our shared commitment to advance SMEs’ aspirations to grow their business.”

For his part, Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK, said: “We are pleased to have partnered with Ajman Free Zone, as the MoU ultimately means providing Ajman based SMEs with the financial support they need to grow in today’s challenging economic situation. This signing reaffirms the Bank’s commitment to offer SMEs simple and convenient banking solutions that better suit their needs.”

The agreement was signed by H.E. Eng. Ali AlSuwaidi, Director General of Ajman Free Zone and Dhiraj Kunwar, Managing Director of Business Banking at RAKBANK.

09/06/2021

Abu Dhabi, 08 June 2021: Emirates Development Bank [EDB], a key financial enabler of the country’s economic diversification and industrial transformation agenda, has entered into a Memoradum of Understanding [MoU] with RAKBANK on Credit Guarantee and Co-lending programs for SMEs in the UAE.

Under the agreement, RAKBANK can offer up to AED 10 million financing to SMEs, and 50% of the facility amount will be either guaranteed or co-lent by EDB.

The program also aims to support UAE citizens in their startup journey by offering financing facilities of up to AED 1 million, wherein 60% is guaranteed or co-lent by EDB.

The MoU was signed by Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, and Peter England, Chief Executive Officer at RAKBANK.

The MoU is part of EDB’s commitment to support the goals of the National Agenda to empower the country’s industrial sector and propel a sustainable national economy by boosting the SME ecosystem in the UAE as well as enhancing the contribution of SMEs to the country’s GDP.

Commenting on the partnership with RAKBANK, Ahmed Mohamed Al Naqbi, said: “At EDB, we aim to support companies and entrepreneurs to have access to wider financing options, which will serve the country’s efforts of building a knowledge-based economy and contribute to sustainable economic development. Our MoU with RAKBANK will help in bridging the funding gap for SMEs in key sectors, which will not only strengthen the SME ecosystem but also pave the way for building a robust economy.”

In his comments, Peter England said: “This agreement is in line with the Bank’s commitment to advance and strengthen the SME’s presence in the country by offering them ‘Simply Better’ financial support and convenient banking solutions that best suit their needs. The development of the National economy is a top priority at RAKBANK and this partnership exemplifies that by supporting priority sectors in the country such as manufacturing, healthcare, infrastructure, food security and advanced technology, all while targeting a wider customer base by offering facilities to UAE Nationals and Expats alike.”

The MoU is aligned with EDB’s recently-unveiled strategy, offering direct and indirect lending for SMEs (Supply Chain, Project and Long-term Finance), an investment arm for startups and SMEs (accelerator, equity finance, business growth fund) as well as business advisory services for entrepreneurs, startups and small companies (coaching, consulting, mentoring, market research).

27/05/2021

United Arab Emirates, May 27, 2021: RAKBANK announced that it has concluded another issuance of USD 75 million 2.5 year Floating Rate Note (FRN) at a coupon of 3 months USD LIBOR+100 basis points. This deal was arranged through Standard Chartered Bank, who acted as the Sole Bookrunner. The FRN was issued by RAK Funding Cayman Limited and was initiated under the Bank’s USD 2 billion EMTN program. These notes were rated BBB+ by Fitch. The funds will be used by RAKBANK for general corporate purposes. The settlement date of the FRN is 27th May 2021. 

24/05/2021

RAKBANK announced that it has concluded an issuance of USD 75 million 2.5 year Floating Rate Note (FRN) at a coupon of 3 months USD LIBOR+100 basis points. The deal was arranged by First Abu Dhabi Bank PJSC (FAB), who acted as the Sole Lead Arranger. The FRN was issued by RAK Funding Cayman Limited and was initiated under the Bank’s USD 2 billion EMTN program. These notes were rated BBB+ by Fitch. The funds will be used by RAKBANK for general corporate purposes. The settlement date of the FRN is 24th May’2021.

20/05/2021

The New Bank Branch is Located in Business Bay

Dubai, UAE - 19 May 2021: RAKBANK recently opened a new RAKBANK Elite Center that is conveniently located in Dubai’s Business Bay, the heart of the city’s business district. The location of the new RAKBANK Elite Center offers RAKBANK’s valued Elite and Wealth Management customers easy and instant access to a wide range of financial solutions as well as their dedicated Relationship Managers.

Through its comprehensive Conventional and Sharia-compliant Islamic Banking services, RAKBANK is considered one of the fastest growing Wealth Management providers across the UAE. Offering a broad range of financial services and solutions that are tailored to meet the specific needs of our customers. At RAKBANK, our Relationship Managers work closely with customers to prepare a personalised plan based on an in-depth review of their financial goals. The opening of the Bank’s latest Elite center further adds to its already extensive list of branches and offices located across the UAE and reinforces its commitment to serve customers.  

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, said: “RAKBANK’s strategy is to constantly offer a combination of both convenient locations and enhanced Digital Banking solutions for a seamless and holistic banking experience, this ensures that the Bank caters to customers across all main locations and channels. The opening of the RAKBANK Elite center is in line with the Bank’s plan to expand its network and to explore and develop major Corporate and Individual relationships in the UAE.” 

“We recognize that the wealth management customer is always on the lookout for that ‘extra something,’ and this new branch being in a prime location along with additional customization of the banking experience is a roadmap milestone to exceeding such expectations,” commented Kieron Franklin, RAKBANK’s Director of Wealth Management. “We also understand that each customer is unique and requires a personalized approach to meet their needs and aspirations based on their profile, objectives, and lifestyle”, he added.

Peter England, RAKBANK’s CEO said, "Based on our experience and knowledge gained in today’s market, the Bank opened this new Elite center to offer our Wealth Management customers a dedicated and holistic approach focusing on key financial solutions such as an integrated wealth planning, global investment management, consolidated reporting, in addition to access to plenty of lifestyle privileges. RAKBANK is fully committed to placing our customers’ needs first and providing them with highly convenient, secure, and simple banking services.” 

For enquiries about RAKBANK Elite Banking and Wealth Management Services, please contact 8004048 or email rakelite@rakbank.ae.   

27/04/2021

• Q1 2021 net Profit up by AED 47.2 million (70.8%) compared to Q4 2020
• Total Assets increased by AED 458.4 million year-to-date
• Gross Loans and Advances stood at AED 32.7 billion as of 31st March 2021 

United Arab Emirates, 27th April 2021: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 113.9 million for Q1 2021, an increase of 70.8% compared to Q4 2020. As of 31 March 2021, Total Assets stood at AED 53.2 billion, an increase of 0.9% year-to-date due to enhancements in Gross Loans and Advances, lending to other banks and investments. Total Income amounted to AED 800.9 million, decreased by 0.8% compared to Q4 of 2020. Additionally, the Operating Expenses for this quarter decreased by 10.2% when compared to Q1 of 2020.

Commenting on the Bank's financial results for Q1 of 2021, Peter England, Chief Executive Officer of the National Bank of Ras Al-Khaimah, stated: "The Bank’s performance this quarter was solid and driven by a strong momentum from all of our business verticals as this was evident in the year-on-year decrease in Provision for Credit Loss by AED 123.4 million. RAKBANK is on a recovery path post COVID and will continue to maintain that trajectory while retaining healthy capital levels. Additionally, RAKBANK’s Asset Portfolio proved its resilience and is a testament to the Bank’s sustainability and adaptability, which is clearly articulated in the diversification of our earning streams.”

Q1 2021 highlights 

• Net Profit increased by AED 47.2 million quarter-on-quarter 
• Non-Interest Income increased by AED 23.4 million quarter-on-quarter 
• Total Assets increased by AED 458 million year-to-date
• Annualized Return on Average Equity stood at 5.9% and the Return on Assets at 0.9% 

Performance review

Net Profit improved by AED 47.2 million compared to Q4 2020, an increase of 70.8% while it decreased by 25.8% year-on-year. Total Operating Income declined by AED 200.2 million compared to Q1 2020. Total Income was down by AED 6.7 million compared to Q4 of 2020, mainly due to a reduction in Net Interest Income by AED 30.1 million, which was partly offset by an increase of AED 23.4 million in Non-Interest Income

Furthermore, the Net Interest Income and Net Income from Shariah-compliant Islamic financing decreased by 23.6% year-on-year and the non-interest income reduced by AED 35.9 million to AED 269.2 million. This is mainly due to the year-on-year decline of AED 18.1 million in net fees and commission income as well as the AED 33.2 million decrease in forex and derivative income which was offset by an increase of AED 12.1 million in investment income and AED 11.9 million in other operating income.

Asset growth

Total Assets increased by AED 458.4 million (0.9%) year-to-date and decreased by AED 6.5 billion year-on-year. Gross Loans and Advances increased by AED 531.4 million year-to-date.

Asset quality

Provisions for Credit Loss decreased by AED 123.4 million year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed the quarter at 5.4%, and the annualized Net Credit Losses to Average Loans and Advances ratio closed at 4.5% compared to 5.3% in Q1 2020.

Capitalization and liquidity

The Bank’s total Capital Ratio as per Basel III, was 18.1% compared to 18.6% at the end of the previous year after the application of a prudential filter. The regulatory eligible liquid asset ratio at the end of the quarter stood at 10.5%, compared to 14.5% as at 31 December 2020, and the advances to stable resources ratio stood comfortably at 85.5% compared to 80.6% at the end of 2020.

Q2 2021 outlook

“The Bank is well positioned to continue helping its customers prepare for a world beyond the pandemic, and that strength is reflected in the earnings achieved this quarter,” CEO Peter England said. “However, the road to recovery is arduous and our priority as a national bank currently revolves around investing in our community by prioritizing our customer needs and requirements. During the upcoming quarters, the Bank will continue to focus on deepening its customer relationships across business verticals by enhancing its digital capabilities and platforms, with the aim of providing exceptional banking solutions to meet the rapidly changing needs of those we serve.” 

Financial highlights

Income statement highlights

31/03/2021

Dubai, United Arab Emirates, 31 March 2021: The National Bank of Ras Al Khaimah (RAKBANK) announced the launch of its extraordinary Emirates Skywards Mastercard World Elite Credit Card campaign that offers cardholders the opportunity to earn up to 160,000 bonus Skywards Miles.

As travel begins to pick up again, it is now the right time to start planning your vacation. RAKBANK Emirates Skywards Mastercard World Elite Credit Card, provides the best offer of up to 160,000 bonus Skywards Miles. New cardholders can earn bonus Skywards Miles from three main actions – Applying, Spending and Transferring:

• Receive 20,000 bonus Miles when signing up and paying the annual fee
• Get up to 80,000 bonus Miles upon transfer of outstanding balances from other non-RAKBANK cards. The balance transfer is being offered at 0% interest rate for 3 months and a 2.99% processing fee
• Earn 50% bonus Miles on spends in the first three statements

New cardholders can also enjoy a free one-night stay at Rixos Premium Dubai hotel upon successful completion of their application online on RAKBANK’s portal. Additionally, existing cardholders can also avail of the balance transfer offer and earn up to 80,000 bonus Miles.

The Emirates Skywards Mastercard World Elite Credit Card rewards cardholders with up to 40,000 Skywards Miles every month based on spends in Dirhams. This is accompanied by a complimentary Emirates Skywards Silver tier membership and the option to fast-track to Emirates Skywards Gold tier membership for both the primary and supplementary cardholder. Similarly, cardholders can also take advantage of a limited-period special monthly interest rate of 2.5%. 

Frederic de Melker, Managing Director of Personal Banking at RAKBANK, said:

“When designing this card and its campaign, we considered three main factors. Firstly, we made sure it truly offers the best value for customers versus what is available in the market whereby we made it simple for our cardholders to know exactly how many skyward miles they are earning, based on their spends in dirhams. Additionally, we designed this card with an innovative concept that was targeted at capturing customer needs with regards to lifestyle benefits like shopping, staycations and more. Lastly, we created options to reward cardholders for every action they take – whether joining, or spending or transferring balances, or maybe even choosing to do all. We truly believe we have created something unique in the market – such offers are hard to come across and cardholders should make the most of it. The best opportunity to save on Skywards Miles is here. The time to act is now.”