RAKBank has reported a sharp 26.1% year-on-year increase in net profit after tax for the first half of 2025, reaching AED 1.37 billion. The bank’s performance was bolstered by rising fee income, robust digital activity, and significantly lower impairment charges. For Q2 alone, the lender posted AED 669 million in profit, a 22% rise from the same period last year.
Lower Impairments, Higher Lending Boost Profits
RAKBank recorded a 52.5% drop in impairment costs, falling to AED 173 million, reflecting a continued improvement in portfolio quality. The impaired loan ratio decreased to 1.9% compared to 2.4% in H1 2024. Total assets reached AED 95 billion, up 18.1% year-on-year, while gross loans and advances climbed 17.4% to AED 51.3 billion. Growth was led by wholesale banking loans, which jumped 33%, aligning with the bank’s diversification strategy.
The CASA (Current Account and Savings Account) deposit base also expanded by 12.2% to AED 40.4 billion, resulting in a CASA ratio of 66%—among the highest in the UAE banking industry.
Card Spending and Digital Usage See Strong Growth
Group CEO Raheel Ahmed highlighted that card spending rose 10% year-on-year, while the bank logged over 28 million digital interactions during the six-month period. Digital transactions increased 15% compared to H1 2024, indicating robust customer engagement across platforms.
“We have once again achieved strong balance sheet growth and fee income,” Ahmed stated. “Our financial institutions group has expanded into new markets with a focus on trade, while our corporate banking operations continue to scale in areas such as trade finance, escrow services, and debt capital markets.”
UAE Banks Ride H1 Momentum Despite Global Volatility
RAKBank joins ADCB in posting upbeat half-yearly results, defying global headwinds including geopolitical tensions and trade-related uncertainty. UAE banking stocks have continued to perform strongly on the DFM and ADX, benefiting from diversified income streams and increased digitalisation.
The bank also increased its technology investments significantly, with capital expenditure rising to AED 125 million in H1 2025, up from AED 65.9 million a year earlier.
