RAKBANK has announced a record quarterly post-tax net profit of AED 574.2M ($156.3M), marking a 27.5 percent increase (39.7 percent increase on a pre-tax basis) driven by sustained momentum on both sides of the balance sheet in the first quarter.
Net Interest Income has reached AED 879.5M, reflecting an 11.5 percent year-on-year growth, supported by a strong fee income of AED 294.9M, up by 9.6 percent year-on-year.
RAKBANK Results
Raheel Ahmed, Group CEO, commented, “Our strategic transformation is progressing positively as we remain dedicated to our goal of becoming the ‘digital bank with a human touch.’”
“In line with our strategy to diversify, I’m pleased to announce that our corporate loans and advances have exceeded AED 10B.”
“Our Wholesale Banking segment now contributes 28 percent of our income and 40 percent of our pre-tax profit.”
“Moreover, our fee income has grown by 9.6 percent year-on-year, highlighting the resilience of our revenue streams.”
Key points from the RAKBANK quarterly report include:
Gross loans and advances have reached AED 43.2B, up by 11.7 percent year-on-year.
Corporate Banking has expanded by over 30 percent, with corporate loans and advances surpassing AED 10B for the first time.
Customer deposits have increased by 19.5 percent year-on-year.
Total Income for Q1 amounted to AED 1.174B, rising by 11 percent year-on-year, supported by a net interest margin of 4.7 percent.
Continued migration to digital channels by customers, targeted operational efficiencies, and strong revenue growth have resulted in a decrease in the Cost to Income ratio to 33.1 percent compared to 35.4 percent in Q1 2023.
Raheel Ahmed further remarked, “As the UAE economy maintains its positive momentum and growth into the second quarter of 2024, we remain vigilant of challenges such as inflation, increasing interest rates, and geopolitical developments.”
“We are closely monitoring the impact of unprecedented weather conditions on our customers and exploring ways to best support them.”