RAKBANK's net profit rises by 105% to AED450 million in Q1 2023

RAKBANK's net profit rises by 105% to AED450 million in Q1 2023

RAS AL KHAIMAH, 26th April, 2023 (WAM) -- The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for the first quarter of 2023 (Q1 2023) ending 31st March.

RAKBANK delivered a Net Profit increase of 105 percent for Q1 2023 driven by a robust and diversified growth on both sides of the balance sheet. This was underpinned by strong sales momentum and lower cost of funds..

Total Income performance was supported by a strong net interest income of AED 788.8 million, up 46.0% year-on-year (YoY). Net interest margins increased to 4.9% against 3.8% (Q1’22) and continues to be among the highest in the Industry. Q1’23 non-interest income of AED 284.4 million, up 52.5% YoY. The growth in non-interest income was driven by higher forex and derivative income.

Gross loans and advances at AED 38.7 billion, reflecting a 1.4% increase compared to 31st December 2022 on the back of a changing balance sheet mix in line with the strategic direction of the bank.

Customer deposits stood at AED 46.4 billion, an increase of 3.3% compared to 31st December 2022. The Bank has a strong Current and Saving Account (CASA) franchise with the CASA ratio of 70.5%.

Cost of Risk remained low due to the Bank’s diverse business mix and resilient UAE economic environment, leading to a 30.9% reduction in impairments as against Q4’22. Impaired Loan provision coverage ratio increased to 192.1% against 137.8% in Q1’22.

Raheel Ahmed, CEO of RAKBANK, said, "We are focusing on expanding strategic hires to lead our growth, and we remain committed to and supporting the career aspirations and ambitions of our colleagues. Special attention is drawn to developing our Emirati talents as we align ourselves to the UAE leadership’s mission of growing and nurturing local talent."