The National Bank of Ras Al Khaimah has reported its financial results for the first half of 2024. RAKBANK delivered a record net profit after tax of AED 1.1 billion, with a year-on-year growth of 21% driven by diversified growth in the balance sheet, continued sales momentum, and strong credit quality. The local bank recorded AED 80.4 billion in total assets acquired in the first half of 2024, emphasizing an addition of 11.9% year-on-year.
RAKBANK’s comprehensive biannual financial report highlighted income was up by 8.7%, primarily supported by a net interest margin of 4.6%, on the back of well-diversified asset growth and a sticky CASA base, augmented by higher foreign exchange and investment income. Raheel Ahmed, Group CEO of RAKBANK, stated, “Our strategic transformation remains on course, and we are making strong progress on becoming the ‘digital bank with a human touch’. The progress of our transformation is evidenced in our record-breaking financial performance in H1 2024. We continue to diversify our balance sheet, reduce our risk profile, and add on new innovative products and services for our customers.” RAKBANK has been a keen driver of technological and sustainable investments in the UAE, showcasing operating expenditure at AED 789 million, reflecting a growth of 3% year-on-year. Customer deposits were valued at AED 58.5 billion, noting a 19.4% climb year-on-year with a CASA ratio of 61.6%.
RAKBANK holds the title of the first bank in the region to issue a social bond. This is a key milestone for RAKBANK as it reinforces its commitment to supporting SMEs and the UAE’s economy. In line with the bank’s Social Finance Framework, the proceeds of the bond will be utilized to support the healthcare industry and provide loans to micro, small, and medium enterprises, in line with the “We the UAE 2031” vision.
In the first half of 2024, RAKBANK managed to drive growth across all the segments, with mortgage loans surpassing the AED 10 billion mark. “As we enter the second half of 2024, we remain watchful of the geo-political dynamics shaped by elections affecting 72% of the world’s population, ongoing military conflicts, and economic indicators in major economies like the USA and China. However, the UAE economy remains resilient on the back of oil prices, real estate, trade, and tourism. We approach the second half of 2024 with confidence as we remain committed to building on the bank’s strengths and delivering on our strategy,” added Ahmed.
