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25/10/2022

RAKBANK reports net profit of AED 878.8mn for the first 9 months of 2022 up 64.4% YoY

Key Highlights Q3/9M ended September 2022

Highest net profit since Q3 2015 driven by diversified balance sheet & lower cost of risk in a robust macro-economic environment. 

• Net profit for the quarter amounts to AED 351.4M up 53.7% compared to Q3 2021, reflecting the highest quarterly Net Profit since Q3 2015.
• Compared to Q3 2021, Total Income increased by 13.6% to AED 915.1M, supported by a strong increase of 19.5% for the Net Interest Income to AED 652.8M and an increase of 1.3% of the Non Interest Income to AED 262.3M.
• Gross Loans & Advances totals up to AED 36.0B, showing an increase of 7.5% YoY and 5.3% YTD.
• Customer Deposits stood at AED 40.3B, a boost of 8.8% YoY and 6.9% YTD.
• Well diversified asset growth and continued improvement in the UAE’s economic environment led to a 47.1% YoY reduction in impairments. 

Healthy returns whilst remaining well capitalized and having one of the best provision coverage ratios in the industry.  

• Net Interest Margins increased marginally to 4.0% and continue to be one of the highest in the Industry.
• The Bank’s Non-Performing Loans ratio is at 3.2% and continues to improve.
• Loan Provision coverage ratio is at 156.5% remaining one of the strongest in the industry.
• Strong profitability metrics with annualized ROA and ROE of 2.0% and 13.9% respectively.
• With Capital Adequacy Ratio (CAR) at 17.0%, the Bank remains well capitalized.

RAKBANK CEO, Raheel Ahmed, commented:

“This quarter we delivered a net profit of AED 351M, which is the highest since Q3 2015, as we continued on our path to sustainable growth & diversified business mix. Our operating Income is becoming well balanced and backed by robust balance sheet growth. We remain disciplined with cost, while reaping the benefits of our business mix shift through lower provisions. The RAKBANK team remains to be fully focused on providing the best service to our customers, while at the same time being relentlessly focused on delivering results. 

In order to support the cross border trade and promote strategic initiatives that enhance the region’s payments infrastructure, we have partnered with Buna, the Arab Monetary Fund (AMF)’s payment platform. 

We continue to back entrepreneurs and start-ups and opened more than 8,000 new accounts for them YTD. We have also offered financing solutions to more than 3,800 SMEs in the last nine months and helped 800 customers to buy their homes.  Additionally we deepened existing relationships as evidenced by the growth in card spends and overall payments. 

As a result of our customers’ confidence and trust, we have been recognized as UAE’s Mid-sized Domestic Retail Bank of the Year and UAE’s best SME Bank of the Year by the Asian Banking & Finance Awards. We also received the Best SME Bank in the UAE Award from the Global Finance Magazine and the Banking Excellence Awards.

This quarter’s net profit grew from strength to strength and our 9 months net profit recorded AED 879M, an increase of 64% YoY, as we benefit from income growth and stringent cost management. 

Our income growth is driven by the Bank’s solid balance sheet momentum across all the segments, with Business Banking and Wholesale Banking growing by AED 906M (up 11%) and AED 687M (up 8%) respectively, while Retail Banking grew by AED 231M (up 1.3%). Customer Deposits increased by 9% YoY, outpacing the growth in Gross Loans and Advances, given the importance of Liabilities in a rising interest rate environment.

The continuing shift in the business mix to make our business more sustainable and resilient is resulting in the low level of Provision for Credit Loss that recorded AED 465M, marking a 47% decrease YoY.

Lastly, our digital transformation is starting to yield early results as our digitally active customers continued to increase by 7% YoY, while our digital transactions achieved a record growth of over 15% YoY."

Q3/YTD 2022 Management Discussion & Analysis

Financial Highlights for Q3/YTD 2022

Balance Sheet Highlights:

Key Ratios:

*Annualized
**After application of Prudential Filter  
Figures in brackets represent unfavorable movements

Key Highlights

Profitability Growth supported by Income momentum and improvement in Provisions

• 64.4% increase in Net Profit to AED 878.8M for nine months ended 30 Sep 2022. Net profit for the quarter at 351.4M up 53.7% compared to Q3 2021, reflecting the highest quarterly Net Profit since Q3 2015.
• Net Interest Income and Income from Islamic products net of distribution to depositors stood at AED 1.8B for nine months ended 30 Sep 2022, an increase of 8.3% compared to same period in 2021. 
• Interest income from conventional loans and investments was up by 14.1% compared with the first nine months in 2021, and interest costs on conventional deposits and borrowings was up by 55.6%. Net income from Sharia-compliant Islamic financing was up by 3.7%. 
• Non-Interest Income at AED 700.9M, reflects a reduction of 14.2% mainly on account of exceptional trading losses that were booked in Q1 2022. Non-Interest Income for Q3 2022 was up 1.3% compared to Q3 2021. 
• Non-interest income was down by AED 116.0M mainly due to a decrease of AED 76.1M in investment income and a reduction in the Gross insurance underwriting profit by AED 21.4M. This was partly offset by an increase of AED 20.0M in Forex and Derivative income.
• Total Income continues to benefit from the momentum attained from the balance sheet achieving a growth of 12.3% as against the previous quarter and 13.6% increase compared to the same quarter previous year.
• Operating Expenditure is at AED 1.1B for nine months ended 30 Sep 2022, reflecting an increase of 8.6% as compared to the same period 2021 and 6.1% when compared to Q3 2021 as the Bank continued to invest for growth. When measured against the previous quarter, the Operating Expenditure marginally increased by 1.4% as we start delivering structured costs to fund our strategic investments. 
• Compared to 30 September 2021, operating expenses for first nine months of this year were higher mainly due to an increase of AED 76.1M in staff costs and AED 27.0M in Card expenses. This was partly offset by a reduction of AED 6.5M in depreciation, AED 1.8M in marketing expenses and 6.4M in other expenses.
• Cost-to-Income ratio for the bank increased to 45.3% compared to 42.0% at the end of same period last year and 43.2% for FY 2021 largely due to the losses in the Trading book during the first quarter, leading to lower income for YTD 2022. As for Q3 2022, the same was at 40.7% improving against the 45.1% for Q2 2022.
• The Provision for credit loss at AED 465.3M as at 30 September 2022, decreased by 47.1% compared to same period 2021 and is lower by 15.3% for Q3 2022 when compared to Q3 2021 driven by a change in business mix and improvement in portfolio credit quality.
• Net Credit Losses to average loans and advances closed at 1.7% compared to 3.6% as at end of 30 September 2021.

Balance Sheet crosses AED 63B with a strong uptick across customer segments

• Balance sheet crosses AED 63B as the Total Assets increased year to date by AED 7.5B reflecting a growth of 13.4%, due to an increase in Gross Loans and Advances by AED 1.8B, Cash and Central Bank balance increased by AED 1.9B, an increase in Lending to Banks by AED 2.0B and Investments growth by AED 1.3B. 
• A strong balance sheet drive was evident across all of the Bank’s segments. Lending in the Wholesale Banking increased by AED 687.1M, Retail Banking segment increased by AED 231.1M and Business Banking lending increased by AED 905.7M compared to 31 December 2021 respectively. 
• Wholesale Banking Segment reflected a strong YTD growth on the balance sheet of 7.9% on the back of strong advancement in the Financial Institutions portfolio. 
• The growth of the Retail Banking segment was supported by a strong sales momentum across products, with Mortgages growing by 3.5%, Credit Cards by 3.3%, Auto Loans by 4.0% and Personal Loans by 1.6%.
• Business Banking segment recorded an 11.2% growth YTD backed by a 9.2% increase on Business Loans as well as a raise in the trade and working capital loans by 12.5%.  
• Non-performing Loans and Advances to Gross Loans and Advances ratio declined to 3.2% as at 30 September 2022 compared to 4.5% as at 30 September 2021 and 4.1% as at December 2021. 

Strong Growth in Customer Deposits as we become the main bank for more of our customers 

• Customer deposits increased by 8.8% compared to 30 September 2021 and 6.9% compared to 31 December 2021 mainly due to an increase of AED 1.8B in CASA accounts and AED 759M in time deposits; thus further endorsing the trust our customers place in RAKBANK’s solutions and services. 

Comfortable Capital and Liquidity position

• The Bank’s total Capital Ratio as per Basel III, after the application of prudential filter was 17% which remained the same compared to the end of the previous year. 
• The regulatory eligible liquid asset ratio at the end of 30 September 2022 was 14.5%, compared to 11.6% as at 31 December 2021, and advances to stable resources ratio stood comfortably at 84.8% compared to 82.9% at the end of 2021.

Healthy Cash Flows from operating activities

• Cash and cash equivalent as at 30 September 2022 were AED 5.1B compared to AED 2.3B as at 30 September 2021. 
• Net cash generated from operating activities was AED 4.9B, AED 1.9B was used in investing activities and AED 1.2B used in financing activities. 

Impact of Projected Capital Expenditure and developments

• The Group incurred AED 58.7M in capital expenditure primarily focused on implementing and embedding Consumer Protection Framework while enhancing our AML / CFT systems, and investing in digital experiences. 
• RAKBANK will carry on advancing its investment towards customer-centric technology transformation.

Further embedding ESG into RAKBANK’s Strategy and Mission

• RAKBANK customers logged into our digital solutions over 9 million times in the third quarter of 2022, plus over 250,000 customers are digitally active. This further drives our strategic vision of creating a seamless digital journey for our customers.
• As we continue to be our customers’ long term financial partner and remain by their side through any life changing event, we have introduced RAKBANK Money Assist not only to help them assess their debt situations and make sounder financial decisions but also to support them in planning, spending, and taking control of their finances. 
• Moreover, the Bank is working closely with the Ras Al Khaimah Municipality on an energy audit program for the industrial sector. The program will help industrial companies identify energy saving opportunities that will make them more environmentally friendly and competitive. The Bank’s role is to extend a credit facility to dilute these initiatives over time along with any other financial support that such companies may need when investing in the necessary equipment/gear to become energy efficient.
• In 2021, the Bank’s Environmental, Social and Governance (ESG) framework was 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.

Strategy Going Forward

• RAKBANK has developed a refreshed 5-year strategy to build on the Bank’s existing strengths while creating sustainable growth across all key business lines and delivering a simply better customer experience.

Risk Management in the Current Economic Scenario

• The global economic activity is experiencing an overall slowdown, with inflation growing exponentially. There are plenty of factors that contributed to the situation from the Russian-Ukraine conflict, the effects of COVID-19, Supply-chain challenges, and more.
• According to the IMF, the global growth is forecast to slow from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the aftermath of the COVID-19 pandemic.
• These factors are going to prompt greater caution at the Bank and risk focus as we tread cautiously into the last quarter of 2022 & into 2023.
• The inflation increasing can have a ripple effect on the economy as it directly influences interest rates and borrowing costs. The Bank is looking for methods to offer continuous financial and non-financial support to its customers.

Ratings

RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown in the table below. This rating reflects the institutional strength of the Bank that is backed up by trust and transparency in financial reporting.

04/10/2022

A centralized, risk-controlled, and secure platform providing real-time services to customers

United Arab Emirates, 03 October 2022 – RAKBANK announced that it has joined the Arab Monetary Fund (AMF)’s Buna payment platform today. In line with the Bank’s digital transformation strategy, this partnership aims to provide customers with an enhanced payment service platform for sending and receiving cross-border, multicurrency payments safely and securely.

Buna enables commercial banks, central banks, and other financial institutions, in the Arab region and beyond to send and receive payments in Arab currencies as well as key international currencies. It offers real-time services through a centralized, risk-controlled, and secure platform. 

As RAKBANK is a participating Bank in Buna Payments platform, it will now have access to Real time Gross Settlement (RTGS) for foreign remittances offering an efficient, accessible, and risk-controlled payments process to its customers. The main objective is to harness the capabilities of the Buna payment platform to better serve its customers. This partnership will further strengthen the country’s regional cross-border payments sector and provide a seamless payment infrastructure.

Raheel Ahmed, Chief Executive Officer of RAKBANK, said: “Joining the Buna payments platform is a pivotal step in RAKBANK’s plan to support regional cross border trade. It is important for us to explore strategic initiatives that enhance the region’s payments infrastructure. As a customer-focused bank in the UAE, we understand the importance of convenience and speed when it comes to payments. This announcement is in line with our commitment to investing in smarter banking solutions and increasingly using technology to make our range of services more accessible to additional customers, wherever they are. We would like to thank Buna for their exceptional cooperation which has made this process easy and swift.”

Commenting on this, Mehdi Manaa, Chief Executive Officer of Buna, said: ‘’We are pleased to welcome RAKBANK as participant in Buna. With the onboarding of RAKBANK, we look forward to unlocking the opportunities in enhancing cross border payments in multiple Arab and international currencies in compliance with global standards and international best practices. This is a major step to realize our vision to empower economies and strengthen integration within the Arab world. At this occasion, I would also like to thank the Central Bank of UAE for its continuous support to Buna.”

This move comes as the first of many initiatives by the Bank, aimed at enhancing their international payments capabilities. Buna has rapidly grown its network to include over 84 participant banks.
 

26/07/2022

Key Highlights Q2 / H1 2022

Strong profit growth driven by diversified balance sheet & lower cost of risk in a buoyant macro-economic environment. 

• Net profit for the quarter at 307.3 mn up 39.7% compared to Q1 2022, reflecting the highest quarterly Net Profit since 2015.
• Compared to Q1 2022, total Income increased by 12.1% to AED 815 mn during this quarter, supported by a strong increase of 4.2% on the Net Interest Income to AED 563.0 mn and an increase of 35.1% on the Non Interest Income to AED 252.0 mn.
• Gross Loans & Advances at AED 35.8 bn, up 7.8% YoY and 4.7% year-to-date.
• Customer Deposits at AED 39.6 bn, up 6.8% YoY and 5.1% year-to-date.
• Balance sheet crosses the AED 60 bn milestone.
• Well diversified asset growth and continued improvement in the macro-economic environment led to 58.0% YoY reduction in impairments.

        
Healthy returns whilst remaining well capitalized and having one of the best provision coverage ratios in the industry.

• Net Interest Margins stable at 3.9%, continues to be one of the highest in the Industry.
• Non-Performing Loans ratio at 3.6% continues to improve.
• Loan Provision coverage ratio at 142.1% remains one of the strongest in the industry.
• Solid returns with annualized ROA at 1.9% and annualized ROE at 12.7%.
• With Capital Adequacy Ratio (CAR) at 16.8%, the Bank remains well capitalized.
   

RAKBANK CEO, Raheel Ahmed, commented:

“RAKBANK continued the momentum in Q1 to deliver a strong set of financial results in Q2, recording a net profit of AED 527 mn for H1 2022. Our return on equity is at 12.7% & we continue to maintain an industry leading provision coverage ratio of 142.1%.

We have seen broad based asset growth (7.8% YOY) across all segments of our business, as part of our diversification strategy. Similarly, we are equally pleased with strong deposit growth (6.8% YoY). We maintained our net interest margins at 3.9%, one of the highest in the industry. 

Innovation is in our DNA. To support the UAE’s vision to become a global hub for digital assets, we have partnered with Kraken, a global crypto exchange licensed by ADGM, to soon enable their customers to trade directly between crypto & dirhams through local bank accounts. Similarly, as the “go to” bank for the budding entrepreneurs and the thriving SMEs we offered financing solutions to more than 2,400 small and medium enterprise customers in the last six months. This will not only enable them to launch or grow their businesses, but also contribute to the country’s economic growth. We also partnered with DIFC & a few other banks to launch the region's first Open Finance Lab to promote the development and growth of the UAE financial technology sector.

We continue to accelerate our focus on being trusted advisors to our customers and clients for all their financial needs enabled by digital solutions, personalization (through analytics) & a customer obsessed mind-set and culture. I am pleased to report that we crossed 5Mn digital transactions in H1 of 2022 (up 20% YoY). Customer engagement also continues to strengthen with 26% YoY spend growth on our cards & 6% YoY increase in payments by customers on RAKBANK rails.

In line with the buoyancy in the UAE economy, our outlook for H2 2022 remains positive. However, we continue to carefully monitor the rising interest rates, inflation & the current geopolitical tensions & its potential impact on our customers and clients & supporting them to manage their finances through these uncertain times.”

Financial Highlights for Q2 / H1 2022

Income Statement Highlights:
 

Balance Sheet Highlights:
 

Key Ratios:
 

*Annualized
**After application of Prudential Filter  
 

Key Highlights

Profitability Growth supported by Income momentum and improvement in Provisions

• 72.4% increase in Net Profit to AED 527.4 mn in H1 2022. Net profit for the quarter at 307.3 mn up 39.7% compared to Q1 2022, reflecting the highest quarterly Net Profit since 2015.
• Net Interest Income and Income from Islamic products net of distribution to depositors at AED 1.1 bn for the first half of 2022 an increase of 2.7% compared to H1 2021. 
• Interest income from conventional loans and investments was up by 4.7% compared to H1 2021, and interest costs on conventional deposits and borrowings was up by 14.8%. Net income from Sharia-compliant Islamic financing was down by 0.9%. 
• Non-Interest Income at AED 438.5Mn reflects a reduction of 21.4% mainly on account of exceptional trading losses booked in Q1’22. 
• Non-interest income was down by AED 119.4 mn mainly due to a decrease of AED 66.7 mn in investment income, decrease of AED 15.9 mn in Forex and Derivative income, decrease of AED 12.5 mn in Net Fee and commission, decrease of AED 11.3 mn in other operating income and Net insurance underwriting profit decreased by AED 13.1 mn.
• Total Income continues to benefit from the momentum attained on the balance sheet with Total Income increasing by 12.1% as against the previous quarter, while the same is lower by 5.6% compared to H1 2021 due to lower Non Interest Income.
• Operating Expenditure at AED 740.1 mn for H1 2022 reflected an increase of 9.9% as compared to H1 2021 and 7.2% as compared to Q2 2021 as the bank continued to invest for growth. Compared to the previous quarter the Operating Expenditure is lower by 1.3% as we start delivering the cost efficiencies to fund our strategic investments.
• Compared to H1 2021, operating expenses for first half of this year were higher mainly due to an increase of AED 45.6 mn in staff costs, AED 20.8 mn in Card expenses, AED 3.1 mn in occupancy costs and 1.5 mn in other expenses. This was partly offset by a reduction of AED 3.8 mn in depreciation and AED 1.1 mn in marketing expenses.
• Cost-to-Income ratio for the bank increased to 48.0% compared to 41.2% at the end of same period last year and 43.2% for FY 2021 largely due to the losses in the Trading book during the first quarter, leading to lower income for H1. As for Q2 2022 the same was at 45.1% improving against the 51.2% for Q1 2022.
• Provision for credit loss at AED 274.5 mn as at H1 2022, decreased by 58.0% compared to H1 2021 and 52.8% compared to Q2 2021 driven by a change in business mix, improvement in portfolio credit quality supported by continued improvement in the macro-economic environment. 
• Net Credit Losses to average loans and advances closed at 1.5% compared to 4.0% as at end of first half of 2021.

Balance Sheet crosses AED 60 Bn with a strong uptick across customer segments

• Balance sheet crosses AED 60 bn as the Total Assets increased year to date by AED 4.5 bn reflecting a growth of 7.9%, due to an increase in Gross Loans and Advances by AED 1.6 bn, Cash and Central Bank balance increased by AED 1.3 bn, Lending to Banks which increased by AED 907 mn and Investments increased by 264 mn. 
• Lending in the Wholesale Banking increased by AED 754.0 mn, Retail Banking segment increased by AED 339.7 mn and Business Banking lending increased by AED 522.7 mn compared to 31 December 2021. Strong balance sheet momentum was visible across all the segments 
• Wholesale Banking Segment reflecting a strong YTD growth on the balance sheet of 8.7% on the back of over 20% growth in the Financial Institutions portfolio 
• Growth for Retail Banking supported by a strong sales momentum across products, with Auto loans reflecting 5.1% YTD growth, Mortgages growing by 3.7%, and Credit Cards by 1.2%.
• Business Banking segment recorded a 6.5% growth YTD backed by 4.8% growth on Business Loans while trade and working capital loans reflected 8.9% growth YTD. 
• Total Assets increased by AED 6.5 bn to AED 60.8 bn compared to 30 June 2021 mainly due to an increase in Gross Loans and Advances AED 2.6 bn, AED 2.0 bn in Cash and Central bank balances, AED 846 mn in Investments and AED 475 mn in Due from other banks.
• Non-performing Loans and Advances to Gross Loans and Advances ratio was 3.6% as at 30 June 2022 compared to 5.1% as at 30 June 2021 and 4.1% as at December 2021. 

Strong Growth in Customer Deposits as we become the main bank for more of our customers 

• Customer deposits increased by 6.8% as against first half of 2021 and 5.1% or AED 1.9 bn to AED 39.6 bn compared to 31 December 2021 mainly due to increase of AED 1.3 bn in time deposits and AED 624.4 mn in CASA accounts endorsing the trust our customers place in the RAKBANK franchise and our services. 

Capital and Liquidity

• The Bank’s total Capital Ratio as per Basel III, after the application of prudential filter was 16.8% compared to 17.0% at the end of the previous year. 
• The regulatory eligible liquid asset ratio at the end of the first half was 13.0%, compared to 11.6% as at 31 December 2021, and advances to stable resources ratio stood comfortably at 82.0% compared to 82.9% at the end of 2021.

Cash Flows

• Cash and cash equivalent as at 30 June 2022 were AED 4.3 bn compared to AED 2.8 bn as at 30 June 2021. 
• Net cash generated from operating activities was AED 2.9 bn, AED 720.2 mn was used in investing activities and AED 1.2 bn used in financing activities. 

Impact of Projected Capital Expenditure and developments

• The Group incurred AED 31.9 mn in capital expenditure primarily focused on implementing and embedding Consumer Protection Framework while enhancing our AML / CFT systems. 
• The Bank will continue to invest in innovative digital first technological solutions to offer a highly personalized & digitized experience for our customers.

Further embedding ESG into RAKBANK’s Strategy and Mission

• Over 2.6 mn digital transactions were conducted in the second quarter of 2022.
• Based on results compounded from customer surveys the Net promoter Score of the Bank for Q2’22 improved to 51 and is above the UAE market benchmark.
• In line with the Bank’s ESG Framework, we supported budding entrepreneurs and the thriving SME sector by offering financing solutions to more than 2,400 small and medium enterprises customer throughout the last six months, that will not only enable them to develop their businesses, but also contribute to the economic growth of the UAE.
• During Ramadan, RAKBANK supported Al Jalila Foundation’s campaign called basma. This campaign was an event for all the women who survived/fighting cancer to a wholesome iftar whereby 100% of the proceeds from basma campaign was used to support pioneering childhood cancer research and help children with cancer whose families are unable to afford quality treatment.
• RAKBANK and Edenred’s collaboration with United Nations Capital Development Fund (UNCDF) aims to improve access, uptake, and usage of the Bank’s digital remittance solutions, RAKMoneyTransfer (RMT), among the 1.3 million blue collared migrant workers receiving their wages digitally (C3 cardholders). In addition to the fully digital solution RMT, the Edenred C3 card offers users flexibility with their finances, including access to micro credit facilities, mobile top ups, etc. and is designed to support financial inclusion for the unbanked section of the society.
• The Bank continues to raise awareness about the evolving tax system here in the UAE by inviting over 800 Business Banking customers to attend a comprehensive webinar on the newly announced Corporate Tax. RAKBANK invited panelists and speakers that comprised of top management from Deloitte and MI Capital, tax industry experts that shared their insight on the United Arab Emirates (UAE) federal Corporate Tax (CT) announcement.
• In 2021, the Bank’s Environmental, Social and Governance (ESG) framework was 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.

Q2 2022 Major Events and Developments

• RAKBANK is one of the four Banks to partner with DIFC to launch the region's first Open Finance Lab to promote the development and growth of the UAE financial technology sector.
• RAKBANK revamped its Digital Market place for SMEs (SMEsouk) with added features and functionalities such as trade license comparator, business toolkit, Digital onboarding, and more.

Risk Management in the Current Economic Scenario

• The ongoing geopolitical crisis in conjunction with the rising interest rates has and is expected to continue to exert an upward pressure on the prices of the most basic necessities. 
• Sharp rise in input costs, as prices for fuel, metals, chemicals etc. remain elevated impacted by the global supply-chain challenges 
• These factors are expected to prompt a greater caution and risk aversion as we tread cautiously into the second half of 2022. 

Strategy Going Forward

• RAKBANK is refreshing its 5-year strategy which defines the bank’s renewed purpose of ‘Simply Better’ banking by becoming the trusted advisor for its customers & clients for their financial needs.  
• We are making rapid process in further strengthening our SME customer experience through the launch of digital onboarding & loan capabilities & diversifying & enhancing our wholesale banking business into a relationship led model.

RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown in the table below. This rating reflects the institutional strength of the Bank that is backed up by trust and transparency in financial reporting.

18/07/2022

RAKBANK will become the first UAE bank to enable Kraken to offer transparent, efficient, dirham-based digital asset trading to their customers, as the UAE takes strides to achieve its vision of becoming a global virtual asset hub.

Abu Dhabi, July 18, 2022 – In line with its commitment to “Simply Better” banking and innovation, RAKBANK and Kraken MENA (Kraken), one of the world’s largest digital asset exchanges, have today announced UAE residents will soon be able to trade virtual assets in AED using their local bank account. As regulated by the Central Bank of UAE, RAKBANK will enable Kraken, which is licensed by Abu Dhabi Global Market (ADGM), to have their UAE-based clients fund their crypto account through local fund transfers from any bank in the UAE.  Kraken was the first global exchange to have received a full license to operate a regulated virtual asset exchange platform in the Abu Dhabi Global Market (ADGM).

Currently, UAE residents who trade virtual assets must use banks or foreign correspondents outside the UAE to fund their trading. As a result, they incur high foreign exchange costs and fees, experience long lead times (more than 24 hours) and are subject to overseas-jurisdiction asset governance. Through this innovative solution, UAE residents will be able to fund their account faster and at lesser costs, all while remaining within the UAE’s jurisdiction.

“We are proud to be the first UAE bank to enable Kraken, so that it can offer this solution to its UAE-resident crypto investors. This is another step towards our goal of making banking simpler and easier through innovation,” said Raheel Ahmed, Chief Executive Officer of RAKBANK. “The UAE is emerging as a global hub for the crypto and virtual assets industry. With this breakthrough solution, Kraken’s UAE-based investors will be able to transact in virtual assets transparently and efficiently through an ADGM-regulated crypto exchange that has the ability to convert between AED and crypto through UAE Central Bank-regulated banking channels.”

“We are pleased to support the UAE’s vision of becoming a global hub for virtual assets. We believe this offering will enable a simpler, faster and cheaper solution for UAE residents,” added Raheel.

“Kraken is one of the largest and most trusted virtual asset exchanges in the world,” said Benjamin Ampen, Managing Director for Kraken MENA. “Investors in the UAE will soon be able to directly participate and invest in the crypto market. Our solution is safer, more secure, more efficient and reduces costs. Alongside our partners at RAKBANK and under the pioneering regulatory oversight of the ADGM, we are about to make our vision of AED-denominated crypto trading in the UAE a reality.”

H.E Ahmed Jassim Al Zaabi, Chairman of Abu Dhabi Global Market (ADGM) said, "We congratulate RAKBANK and Kraken on this successful partnership that showcases the thriving virtual asset ecosystem of Abu Dhabi and the trust that financial institutions have in the ADGM’s regulatory framework. Today, as an International Financial Centre, we are the leading jurisdiction in the region for the regulation of virtual asset activities and we strongly believe that this partnership is a step forward that confirms Abu Dhabi’s role as a catalyst for virtual-asset innovation".
 

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.