Income, Profit & Balance sheet growth continues into 2024 as the Bank's strategy embeds further. Record Net Profit before tax of AED 1.2B up 33% YoY

Tuesday, July 30, 2024/ Editor -

Ras Al Khaimah, United Arab Emirates, July 29, 2024 – The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the first Half of 2024.

Highlights

Total Income

AED 2.3B

+8.7%

YoY

Total Assets

AED 80.4B

+11.9%

YoY

Deposits

AED 58.5B
+19.4%

YoY

Return on Equity
20.4%

YTD

Return on Assets

2.9%

YTD

Key Financial Highlights – H1 2024

RAKBANK delivers record net profit after tax of AED 1.1B, growth of 21% YoY, driven by diversified growth in balance sheet, continued sales momentum and strong credit quality.

Income up 8.7% YoY, supported by a net interest margin of 4.6%, on the back of well diversified asset growth and sticky CASA base, augmented by higher Foreign Exchange & Investment income.
Operating Expenditure was at AED 789M, reflecting a growth of 3% YoY, as the Bank continues to grow the business and invest in technology and talent on a sustainable basis.
Gross loans & advances at AED 43.7B up 9.4% YoY, driven by growth across all segments, with Wholesale Banking loans and advances growing by 19.4%, in line with the Bank’s diversification strategy.
Customer deposits at AED 58.5B up 19.4% YoY, with a CASA ratio of 61.6%.
Portfolio credit quality remains robust with cost of risk at 1.7% v/s 2.6% in H1’23, supported by benign credit environment and shift in business mix towards secured low risk assets.
Total provisions coverage on gross loans & advances is at 6.1% compared to 5.7% in H1’23.
Shareholder returns remain strong with Return on Equity (ROE) of 20.4% and Return on Assets (ROA) of 2.9%.
The Bank remains liquid and well capitalised with Capital Adequacy Ratio (CAR) at 18.0% vs. 17.8% as at 31st December 2023.
Strong liquidity position as reflected by an Eligible Liquid Asset Ratio of 15.5% and Advances to Stable Resources Ratio at 79.4%
The impaired loan ratio improved to 2.4% against 2.6% as at 31st December 2023.

Key Financial Highlights – Q2 2024

Operating Income for Q2’24 was at AED 1,174M, reflecting an increase of 6.6% YoY.
Profit before tax for Q2’24 was at AED 566M, reflecting an increase of 25.6% YoY.
Gross loans & advances for the quarter are up 1.1% vs Q1’24 driven by growth across all the segments, with Mortgage loans surpassing the AED 10B mark.
Customer Deposits reflected a growth of 5.6% vs Q1’24, driven by growth in both time & CASA deposits.