RAKBANK reports net profit of AED 534.7mln

For nine months ended 30 September 2021

  • Net Profit surged by 73.2% compared to the third quarter of 2020; up by 21.9% year-to-date
  • Gross loans and advances up by 2.7% to AED 33.5 billion compared with the third quarter of 2020; up by 4.0% year-to-date
  • Total deposits stood at AED 37.0 billion, up by 8.1% year-on-year
  • Non-interest income up by AED 24.1 million compared to same period last year   
  • Provisions for the nine months of 2021 dropped by 31.7% year-on-year 

United Arab Emirates: The National Bank of Ras Al-Khaimah (“RAKBANK”) announced a consolidated Net Profit of AED 534.7 million for the nine-month period ended 30 September 2021, compared to the net profit of AED 438.6 million for the same period last year. The Total Assets equated to AED 54.5 billion as at 30 September 2021, increasing by 4.1% year-on-year and by 3.3% year-to-date.   

There are several factors that led to the spike in the Net Profit throughout the year, which include a reduction in the Provisions for Credit Loss along with an increase in Non-Interest Income to AED 258.9 million on the back of a growth in the Net Fee and Commission Income by AED 14.0 million as well as an increase in Other Operating Income by AED 17.5 million.

RAKBANK CEO, Peter England, commented: “We have seen a continual improvement in asset quality at RAKBANK especially in the last 2 quarters, which has led to a significant improvement in profitability. We have already surpassed our full year 2020 profit numbers in the first 3 quarters of this year. The improvement in asset quality has come about due to the change of mix in our loan book, which we have been gradually implementing over the last few years, and also the significant improvement in the macro-economic environment due to the exemplary handling of the COVID-19 pandemic by the Leadership of the UAE. We see these very positive trends continuing into the 4th quarter which will bode well for a strong start to 2022.”   

Performance review YTD 2021

Total Income decreased by 11.5% to AED 2,438.1 million, compared to the same period last year, mainly due to a decrease in Net Interest Income and Net Income from Islamic financing by AED 342.5 million on account of the lower mix of high yielding assets. This was partially offset by higher Non-Interest Income of AED 24.1 million.

Net Interest Income and Net Income from Shariah-Compliant Islamic financing weakened by 17.4% year-on-year to AED 1,621.3 million and the Non-Interest Income increased by 3.0% to AED 816.8 million, as a result of the year-on-year increase of AED 34.0 million in Net Fees and Commission Income, AED 14.0 million in Investment Income and AED 19.2 million in Other Operating Income. This was partially offset by lower Forex and Derivative Income by AED 32.0 million and lower Gross Insurance Underwriting Profit by AED 11.1 million.


Total Assets increased by AED 1.7 billion or 3.3% year to date and by AED 2.2 billion year-on-year mainly due to the increase in Investment Securities by AED 2.1 billion and in gross Customer Loans & Advances increased by AED 884.4 million.

Asset quality

Provisions for Credit Loss decreased by AED 407.2 million year-on-year. The Non-Performing Loans and Advances to Gross Loans and Advances ratio closed at 4.5% compared to 5.2% as at 31 December 2020. Additionally, the annualised Net Credit Losses to Average Loans and Advances ratio closed at 3.6% compared to 4.9% year-to-date through September 2020.

Capitalization and liquidity

The Bank’s Capital Adequacy ratio as per Basel III was 17.8% compared to 18.6% as at the end of the previous year. The Common Equity Tier 1 ratio of the Bank stood at 16.7%. The regulatory eligible Liquid Asset ratio was 10.4% as at the end of September 2021. The Advances to Stable Resources ratio stood comfortably at 83.9%.

“RAKBANK continues to focus very heavily on its digital transformation and we are increasingly focused on delivering simpler and more convenient banking solutions. We are seeing great traction on our ‘Skiply’ app, which is now being used by over 100,000 families in the UAE access 180 educational institutions who don’t even need to be a RAKBANK customer to benefit from the proposition.” said Peter England. “We have also seen great success in our partnership with YAP that has developed a unique app based banking solution that allows new customers to open and operate RAKBANK accounts and benefit from a range of products and services provided by YAP and RAKBANK. This focus on digitalisation, innovation and partnerships will continue to grow and develop strongly in 2022 and beyond.”   

Financial highlights

Total Assets increased by AED 1.7 billion to AED 54.5 billion compared to 31 December 2020, mainly due to an increase in Gross Loans and Advances by AED 1.3 billion, Investments by AED 1.7 billion and Due from Banks by AED 1.3 billion offset by a reduction in Cash and Balances from Central Bank of the UAE by AED 2.2 billion. The increase in Loans and Advances compared to 31 December 2020 is due to an increase of AED 568.6 million in Wholesale Banking loans, increase of AED 940.9 million in Retail Banking loans offset by a reduction of AED 234.6 million in Business Banking loans.

Customer Deposits increased by AED 43.5 million to AED 37.0 billion compared to 31 December 2020, mainly due to an increase in Time Deposits of AED 1,026.5 million. This was partly offset by a decrease of AED 982.9 million in CASA accounts.

RAKBANK is currently rated by the following leading rating agencies, with their ratings provided below:

RAKBANK’s Environmental, Social and Governance (ESG) framework is currently rated as BBB by Morgan Stanley Capital International (MSCI).


About RAKBANK              

RAKBANK, also known as The National Bank of Ras Al Khaimah (P.S.C), is one of the UAE’s most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of Personal Banking services, the Bank decreased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKislamic, throughout its 27 branches and its Telephone and Digital Banking channels. RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). For more information, please visit www.rakbank.ae  or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.

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