RAKBANK Achieves Historic Profit Milestone, Crossing AED 2 Billion Mark

Business

RAKBANK Achieves Historic Profit Milestone, Crossing AED 2 Billion Mark

The National Bank of Ras Al Khaimah (RAKBANK) has announced its financial results for 2024, marking a historic milestone by surpassing AED 2 billion in profit before tax for the first time in its history. The bank reported a profit after tax of AED 2.1 billion, a 16% year-on-year (YoY) increase, while profit before tax reached AED 2.3 billion, up 27% YoY.

Record-Breaking Income and Robust Growth
RAKBANK’s total income for 2024 rose by 7% YoY to AED 4.7 billion, supported by diversified asset growth and a stable customer base. The bank’s total assets reached AED 88.3 billion, reflecting a 19% YoY increase, while customer deposits grew by 18.4% YoY to AED 59.6 billion, with a CASA ratio of 62.7%, one of the highest in the industry.

Gross loans and advances surged by 19.2% YoY to AED 50.3 billion, driven by significant growth in Wholesale Banking (35%) and Business Banking (7.5%), aligning with the bank’s diversification strategy.

Operational Efficiencies and Profitability
RAKBANK achieved a net interest margin of 4.5%, supported by well-diversified assets and higher non-interest income. Operating expenses for the year were AED 1.7 billion, increasing by 3.6% YoY, while the cost-to-income ratio improved to 35.2%, down from 36.4% in 2023.

The bank’s return on equity (ROE) stood at 18.4%, while return on assets (ROA) was 2.6%. Capital adequacy ratio (CAR) improved to 18.1%, compared to 17.6% at the end of 2023, underscoring RAKBANK’s strong financial foundation.

Improved Credit Quality and Liquidity
The portfolio’s credit quality improved significantly, with a net impairment charge to average loans and advances ratio at 1.7%, down from 2.5% last year. The non-performing loans and advances to gross loans ratio also improved to 2.1% from 2.6% in 2023.

RAKBANK demonstrated a strong liquidity position, with an Eligible Liquid Asset Ratio of 16.4%, up from 13.0% in 2023, and an Advances to Stable Resources Ratio of 80.2%.

Q4 2024 Performance
During Q4 2024, RAKBANK recorded a profit after tax of AED 386 million and profit before tax of AED 424 million, reflecting a decline of 10.4% and 4.6% YoY, respectively. However, operating income for the quarter rose by 3.7% YoY to AED 1,160 million. Gross loans and advances increased by 2.3% compared to Q3 2024, while customer deposits grew by 4.2%.

RAKBANK’s exceptional performance in 2024 underscores its commitment to operational efficiency, strategic growth, and delivering value to shareholders.