RAKBANK records net profit rise of 53.4% to Dhs1.16bn in 2022

The National Bank of Ras Al Khaimah (RAKBANK) has announced its financial results for FY 2022 and Q4 2022.

RAKBANK reported net profit growth of 53.4 per cent year on year (YoY) for 2022, reaching a total of Dhs1.16bn, its highest in over a decade. The Q4 2022 net profit was reported at Dhs84.6m, a YoY increase of 27.3 per cent.

Total income for the year reached Dhs3.45bn, a 6.9 per cent YoY increase, while Q4’s total income was Dhs994.8m, a 25.5 per cent YoY increase.

RAKBANK’s total income was supported by a strong net interest income of Dhs2.489bn, a 14.8 per cent YoY increase, and the Q4 net interest income was Dhs733.1m, a 34 per cent YoY increase.

RAKBANK performance benefits from a resilient economic environment

A well-diversified balance sheet and resilient UAE economic environment led to a 25.3 per cent reduction in impairments as against the previous year. The impairments for Q4 reflected an increase of Dhs141m versus Q4 2021 largely on account of prudent management overlays in anticipation of the expected developments in the fast-evolving regulatory landscape, uncertain global economy and rising interest rate environment, according to a statement by the bank.

Gross loans and advances at Dhs38.1bn, reflecting a 7.6 per cent increase YoY on the back of a changing balance sheet mix in line with the strategic direction of the bank. Customer deposits stood at Dhs44.9bn, an increase of 15.3 per cent YoY.

Raheel Ahmed, CEO RAKBANK said the growth was diversified across all segments, with total assets growing by 15.5 per cent, loans and advances by 7.6 per cent, and customer deposits by 15.3 per cent YoY. The retail banking segment saw a growth of Dhs102.8m (0.5 per cent YoY).

He added that the bank has seen balance sheet momentum across the wholesale banking and business banking segments, which grew by Dhs1.58bn (18.3 per cent YoY) and Dhs996m (12.4 per cent YoY) respectively.

RAKBANK’s board of directors has also recommended a cash dividend of 34 fils per share for shareholders’ consideration and approval at the annual general meeting.

A year of reset

“This stand-out performance marks the year of reset. A reset of performance: where we have achieved a V-shaped recovery by curbing the declines in the pandemic years. We re-ignited growth on both sides of the balance sheet, while prudently managing costs and strengthening our capital position to achieve an ROE of 13.5 per cent. A reset of strategy: where the board, management, and employees across the bank set out our vision to become the ‘digital bank with a human touch with our customers in their key moments of truth’, and defined the strategic programs to achieve that vision. A reset of the way we work: working as one team, across departments front to back, towards a common goal with clear ownership and accountability,” added Ahmed.

RAKBANK chairman Mohamed Omran Al Shamsi stated that the bank is on track for sustained expansion following its strong recovery in 2022, and that the bank will diversify its business mix, further strengthen its credit profile, and lay the foundation for long-term, sustainable growth in 2023, a year of opportunity amidst uncertainty caused by geopolitical and economic headwinds.

Al Shamsi said: “Looking ahead, we foresee 2023 to be a year of opportunity in the midst of uncertainty caused by geopolitical and economic headwinds. Therefore, we will diversify our business mix and further strengthen our credit profile, and lay the foundation for long-term, sustainable growth. Through the execution of our latest multi-year strategic plan, we will build on the bank’s existing strengths, while continuing to transform the Bank to navigate through a challenging external environment, and ultimately exceed the expectations of our customers.

“By accelerating our digital transformation, we will continue to build digital journeys that enable fast, easy, personal, and relevant customer experiences. These outcomes are fundamental to the bank’s continued success.”

In other news, in November last year, RAKBANK partnered with Abu Dhabi Global Market (ADGM), along with Abu Dhabi Islamic Bank (ADIB) and Wio Bank to support small and medium-sized enterprises (SMEs) in Abu Dhabi with access to key financial services.

Read: Abu Dhabi Global Market partners with ADIB, Wio Bank, RAKBANK to support SMEs