RAKBANK Reports AED 772 Million Pre-Tax Profit in Q1 2025 Amid Global Uncertainty
The National Bank of Ras Al Khaimah (RAKBANK) has announced its financial results for the first quarter of 2025, delivering a profit before tax of AED 772 million. This performance, despite ongoing global economic uncertainty, showcases the bank’s resilience and strategic growth trajectory.
RAKBANK reported a profit after tax of AED 704 million, marking a 22.7% year-on-year increase compared to the same period in 2024. Operating profit rose to AED 866 million, up 10.2% YoY, driven by a robust balance sheet and a rise in non-interest income.
Operating expenses increased by 11.8% year over year, reflecting continued investments in technology, data infrastructure, and the workforce and efforts to enhance the customer experience. The Cost-to-Income Ratio stood at 33.4%, slightly up from 33.1% in Q1 2024.
The bank’s total assets surpassed AED 90 billion for the first time in its history, demonstrating strong financial positioning. Gross loans and advances also saw significant growth, crossing AED 50 billion, a 16.7% year-over-year increase led by all business segments. Notably, Wholesale Banking loans surged by 30.1% year-over-year, in alignment with the bank’s ongoing diversification strategy.
Customer deposits climbed to AED 61 billion, reflecting an 18.2% YoY growth, with a CASA (Current and Savings Accounts) ratio of 65%, one of the highest in the sector.
RAKBANK’s asset quality remains solid, with the cost of risk declining to 0.8% from 1.5% a year earlier. The impaired loan ratio improved to 2.1%, compared to 2.6% in Q1 2024, while provisions to gross loans dropped to 5.6%, ensuring strong coverage.
Shareholder returns continued to impress, with Return on Equity (ROE) at 22.4%, up from 21.4% in Q1 2024, and Return on Assets (ROA) at 3.2%, slightly higher than the 3.1% reported last year.
RAKBANK also maintained a strong capital base, with a Capital Adequacy Ratio (CAR) of 18.6%, compared to 17.2% in the previous year. Liquidity remains robust, with an Eligible Liquid Asset Ratio of 17.1% and an Advances to Stable Resources Ratio of 76.4%.
This strong quarterly performance underscores RAKBANK's strategic focus on sustainable growth, digital transformation, and portfolio diversification.
