RAKBANK delivers record Profit Before Tax of D 1.5B, up 26%, driven by Non-Interest Income growth and robust asset quality

(MENAFN- Gambit Communications HQ) Key Financial Highlights – H1 2025

. Profit after tax of D 1,374M for H1’25 up 26.1% over ’1’24. Profit after tax fo’ Q2’25 was D 669M, reflecting an increase of 22% YoY
. Operating Profit of D 1,680M up 7.7% YoY on the back of strong growth in balance sheet and continued non-interest income momentum
. Operating Expenses grew by 12.9% vs last year driven by continued investments in technology, data, people and customer experience. Cost to income ratio (CIR) at 34.6% vs. 33.6% for H1’24
. Total Assets grew by 18.1% YoY to D 95B, with Gross loans & advances increased to D 51.3B mark, an increase of 17.4% YoY. Growth in loans driven by all segments, with Wholesale Banking loans growing by 33.0% YoY, aligning with the Bank's diversification strategy
. CASA deposit base grew to D 40.4B, up 12.2% YoY, with CASA1 ratio of 66%, one of the highest in the industry
. Portfolio credit quality remains robust with Net Impairment charge to average loans and advances ratio at 0.7% against 1.7% during the same period last year, resulting from a strategic shift in business mix towards secured, low risk assets as well as favorable economic and credit environment
. The impaired loan ratio for H1’25 improved to 1.9% against 2.4% for ’1’24 wh‘le ‘Provisions to Gross’Loans’ ratio was 5.2% compared to 6.2% ’s of H1’24, providing adequate coverage
. Shareholder returns improved with Return on Equity (ROE) of 22.1% against 20.4% in H1’24 and Return on Assets (ROA) of 3.1% against 2.9% in ’1’24
. The Bank remains well capitalized with capital adequacy ratio (CAR) of 18.8% as at H1’25 against 18.0% as at ’1’24
. Strong liquidity position is reflected by an Eligible Liquid Asset Ratio of 15.1% vs. 15.5% at H1’24 and Lending to Stable Resources Ratio at 80.7% vs. 79.4% at ’1’24

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