The National Bank of Ras Al Khaimah (RAKBANK) has announced a robust financial performance for the first quarter of 2025, marked by solid growth across key areas including profit, lending, and customer deposits.
Profit and operating growth
RAKBANK posted a profit after tax of Dhs 704 million for Q1 2025, reflecting a 22.7% increase compared to the same period in 2024. The bank also recorded an operating profit of Dhs 866 million, up 10.2% year-on-year, supported by strong balance sheet growth and a rise in non-interest income.
Operating expenses increased by 11.8%, attributed to ongoing investments in technology, data infrastructure, workforce, and customer experience. The cost-to-income ratio remained stable at 33.4%, compared to 33.1% in Q1 2024.
Asset growth and loan expansion
For the first time in its history, RAKBANK’s total assets crossed the Dhs 90 billion mark. Gross loans and advances exceeded Dhs 50 billion, a 16.7% increase year-on-year, driven by growth in all segments. Notably, Wholesale Banking loans surged by 30.1%, in line with the bank’s strategic diversification plans.
Customer deposits also showed strong performance, reaching Dhs 61 billion, an 18.2% year-on-year increase. The bank’s current and savings account (CASA) ratio rose to 65%, one of the highest in the industry.
Strong asset quality and shareholder returns
RAKBANK maintained a healthy credit portfolio, with a cost of risk at 0.8%, significantly down from 1.5% in Q1 2024. The impaired loan ratio improved to 2.1% from 2.6%, while the provisions to gross loans ratio decreased slightly to 5.6%, indicating strong coverage.
The bank also delivered solid returns to shareholders, achieving a Return on Equity (ROE) of 22.4% and Return on Assets (ROA) of 3.2%, both slightly up from the previous year. RAKBANK remains well-capitalized with a Capital Adequacy Ratio (CAR) of 18.6%, up from 17.2% in Q1 2024.
Additionally, the bank reported a strong liquidity position, with an Eligible Liquid Asset Ratio of 17.1% and an Advances to Stable Resources Ratio of 76.4%.
tanvir@dubainewsweek.com
