RAKBANK’s net profit at Dhs1.1b after tax

The National Bank of Ras Al Khaimah (RAKBANK) on Monday reported its financial results for the first half of 2024. RAKBANK delivers record net profit after tax of Dhs1.1 billion, growth of 21 per cent year over year (YoY), driven by diversified growth in balance sheet, continued sales momentum and strong credit quality.

The bank’s income up 8.7 per cent YoY, supported by a net interest margin of 4.6 per cent, on the back of well diversified asset growth and sticky CASA base, augmented by higher Foreign Exchange & Investment income.

Operating expenditure was at Dhs789 million, reflecting a growth of 3 per cent YoY, as the Bank continues to grow the business and invest in technology and talent on a sustainable basis.

Gross loans & advances at Dhs43.7 billion up 9.4 per cent YoY, driven by growth across all segments, with Wholesale Banking loans and advances growing by 19.4 per cent, in line with the Bank’s diversification strategy and the customer deposits at Dhs58.5 billion up 19.4 per cent YoY, with a CASA ratio of 61.6 per cent.

Portfolio credit quality remains robust with cost of risk at 1.7 per cent v/s 2.6 per cent 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 per cent compared to 5.7 per cent in H1, 2023.

Shareholder returns remain strong with Return on Equity (ROE) of 20.4 per cent and Return on Assets (ROA) of 2.9 per cent.

The Bank remains liquid and well capitalised with Capital Adequacy Ratio (CAR) at 18.0 per cent vs. 17.8 per cent as at 31st December 2023.

Strong liquidity position as reflected by an Eligible Liquid Asset Ratio of 15.5 per cent and Advances to Stable Resources Ratio at 79.4 per cent. The impaired loan ratio improved to 2.4 per cent against 2.6 per cent as at Dec.31, 2023.