Income, Profit & Balance Sheet Growth Continues Into 2024 As The Bank's Strategy Embeds Further. Record Net Profit Before Tax Of AED 1.2B Up 33% Yoy
Date
7/30/2024 5:13:32 AM
(MENAFN- Dubai PR Network) Ras Al Khaimah, United Arab Emirates, July 29, 2024 – The National bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the first Half of 2024.
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Highlights
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Total Income
AED 2.3B
+8.7%
YoY
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Total Assets
AED 80.4B
+11.9%
YoY
|
Deposits
AED 58.5B
+19.4%
YoY
|
Return on Equity
20.4%
YTD
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Return on Assets
2.9%
YTD
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Key Financial Highlights – H1 2024
RAKBANK delivers record net profit after tax of AED 1.1B, growth of 21% YoY, driven by diversified growth in balance sheet, continued sales momentum and strong credit quality.
Income up 8.7% YoY, supported by a net interest margin of 4.6%, on the back of well diversified asset growth and sticky CASA base, augmented by higher Foreign Exchange & Investment income.
Operating Expenditure was at AED 789M, reflecting a growth of 3% YoY, as the Bank continues to grow the business and invest in technology and talent on a sustainable basis.
Gross loans & advances at AED 43.7B up 9.4% YoY, driven by growth across all segments, with Wholesale Banking loans and advances growing by 19.4%, in line with the Bank's diversification strategy.
Customer deposits at AED 58.5B up 19.4% YoY, with a CASA ratio of 61.6%.
Portfolio credit quality remains robust with cost of risk at 1.7% v/s 2.6% in H1'23, supported by benign credit environment and shift in business mix towards secured low risk assets.
Total provisions coverage on gross loans & advances is at 6.1% compared to 5.7% in H1'23.
Shareholder returns remain strong with Return on Equity (ROE) of 20.4% and Return on Assets (ROA) of 2.9%.
The Bank remains liquid and well capitalised with Capital Adequacy Ratio (CAR) at 18.0% vs. 17.8% as at 31st December 2023.
Strong liquidity position as reflected by an Eligible Liquid Asset Ratio of 15.5% and Advances to Stable Resources Ratio at 79.4%
The impaired loan ratio improved to 2.4% against 2.6% as at 31st December 2023.
Key Financial Highlights – Q2 2024
Operating Income for Q2'24 was at AED 1,174M, reflecting an increase of 6.6% YoY.
Profit before tax for Q2'24 was at AED 566M, reflecting an increase of 25.6% YoY.
Gross loans & advances for the quarter are up 1.1% vs Q1'24 driven by growth across all the segments, with Mortgage loans surpassing the AED 10B mark.
Customer Deposits reflected a growth of 5.6% vs Q1'24, driven by growth in both time & CASA deposits.
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