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RAKBank's nine-month net profit soars 25%

Operating income for the nine months to September 2024 was up 8.1% year on year

Published: Mon 21 Oct 2024, 7:12 PM

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For the third quarter, RAKBank's profit before tax was at Dh659 million, an increase of 45.7 per cent year on year. — Supplied photo

For the third quarter, RAKBank's profit before tax was at Dh659 million, an increase of 45.7 per cent year on year. — Supplied photo

RAKBank announced on Monday that its nine-month net profit after tax of Dh1.7 billion, a growth of 25 per cent year on year, driven by growth in loan portfolio across all business segments, improved asset quality and tailwinds from higher net interest income.

Operating income for the nine months to September 2024 was up 8.1 per cent year on year, supported by a net interest margin of 4.6 per cent, the bank said in a statement.

Operating expenses remained flat to last year at Dh1.2 billion for September 2024 year-to-date. Cost to income ratio (CIR) at 33.6 per cent compared to 36.2 per cent for September 2023 year-to-date as the result of improving operating efficiencies.

Gross loans and advances stood at Dh48.9 billion as at September 2024, up 19.1 per cent year on year, driven by growth across all segments, with wholesale banking loans and advances growing by 41 per cent year on year, in line with diversification strategy.

Customer deposits reached Dh57.3 billion, an increase of 18.2 per cent year on year, with a CASA ratio of 62.4 per cent, remaining one of the highest in the industry.

Portfolio credit quality remains robust with cost of risk at 1.6 per cent year-to-date September 2024 as against 2.5 per cent during the same period last year, supported by a benign credit environment and a strategic shift in business mix towards secured, low risk assets.

Shareholder returns remain strong with return on equity (ROE) of 20.6 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 19.6 per cent for Q3 against 17.8 per cent as at the close of FY’23.

For the third quarter, profit before tax was at Dh659 million, an increase of 45.7 per cent year on year. Operating income stood at Dh1.204 billion, an increase of 7 per cent year on year.

Raheel Ahmed, RAKBank's Group CEO

Raheel Ahmed, RAKBank's Group CEO

Raheel Ahmed, RAKBank's Group CEO, said: “Our strategic transformation is steadily advancing as we work towards becoming a ‘digital bank with a human touch.’ At RAKBank, innovation drives our commitment to delivering convenient, transparent, and personalized solutions, showcased by key initiatives. Earlier this year, we launched our Microfinance product, aimed at meeting the financial needs of the underbanked and financially excluded segments. We are one of the first banks in the UAE to execute an international remittance using China’s digital Yuan (eCNY) in exchange for the Digital Dirham (CBDC). As a leader in the SME sector, we continue to champion the growth and success of small and medium-sized businesses. As we enter the final quarter of 2024, we remain focused on continuing to execute our strategic goals. The UAE economy also continues to demonstrate resilience, supported by stable oil prices, real estate growth, and a thriving trade and tourism sector. However, we remain vigilant of the global macroeconomic environment as we continue to navigate the year with agility and foresight.”



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