Dubai, UAE – RAKBANK, the National Bank of Ras Al Khaimah, has reported its highest-ever net profit of AED 1.35 billion ($367 million) through September 2023, a 54% increase compared to the previous year.
The bank’s income increased by 35.4% year-on-year, thanks to continued growth in low-cost deposits and expansion across all segments of its business.
While the bank accelerated its strategic transformation, it managed to control cost increases, which rose by 10.4% year-on-year. This demonstrates efficient operational management.
The bank’s gross loans and advances increased to AED 41.1 billion ($11.2 billion), a 9.5% YoY increase, with growth seen in Wholesale Banking, Business Banking, and Retail Banking. Customer deposits also grew by 16% YoY, reaching AED 48.5 billion.
The bank maintained strong credit quality, with a cost of risk at 2.5% and an impaired loan coverage ratio of 210.3% for the YTD through September 2023.
It delivered strong returns to its shareholders, with a Return on Equity (ROE) of 18.9% and a Return on Assets (ROA) of 2.7% for the same period. The bank also remained liquid and well-capitalized.
The bank’s Capital Adequacy Ratio (CAR) improved to 18.5% in September 2023, up from 16.9% in September 2022.
It maintained a high level of liquidity, with a Regulatory Eligible Liquid Asset Ratio of 16.9% in September 2023. The Advances to Stable Resources Ratio also stood at a comfortable 81.6%.
The bank enhanced shareholder value with an improved Return on Assets, moving from 2.0% in the prior period to 2.7%. The Impaired Loan ratio also improved, decreasing from 3.2% in the previous period to 2.8%.
