RAKBank Reports Record Profit Growth and Robust Balance Sheet for 2024

Ras Al Khaimah, UAE – RAKBank announced a record-breaking performance for 2024, with profit after tax reaching AED 2.1 billion, a 16% increase compared to the previous year. Profit before tax rose by 27% to AED 2.3 billion, supported by the bank’s highest-ever income of AED 4.7 billion, a 7% year-on-year increase.

The strong performance was driven by diversified asset growth, stable customer bases, and higher non-interest income. Total customer loans and advances surpassed AED 50 billion, marking a 19% year-on-year growth.

Operating income for 2024 increased by 7%, supported by a net interest margin of 4.5%. Operating expenses rose 3.6% to AED 1.7 billion, with the cost-to-income ratio improving to 35.2% from 36.4% in 2023 due to strategic cost management and technology investments.

Strong Growth Across Segments

RAKBank’s gross loans and advances grew to AED 50.3 billion, driven by a 35% rise in wholesale banking and a 7.5% increase in business banking loans, reflecting the bank’s diversification strategy. Customer deposits also surged, rising 18.4% to AED 59.6 billion, with a CASA (current and savings account) ratio of 62.7%, one of the highest in the industry.

Portfolio credit quality improved, with the non-performing loans and advances ratio dropping to 2.1% from 2.6% in 2023. The net impairment charge to average loans and advances ratio also decreased to 1.7% from 2.5% last year, driven by a strategic focus on low-risk, secured assets.

Q4 Performance and Strategic Outlook

For the fourth quarter, RAKBank reported a profit after tax of AED 386 million and a profit before tax of AED 424 million, reflecting year-on-year declines of 10.4% and 4.6%, respectively. However, operating income rose 3.7% to AED 1.16 billion, with loans and customer deposits showing quarterly growth of 2.3% and 4.2%, respectively.

Chairman Mohamed Omran Alshamsi emphasized the bank’s commitment to innovation and customer experience. “With a strong and resilient balance sheet, RAKBank will continue investing in talent and technology to deliver exceptional offerings,” he said.

Group CEO Raheel Ahmed highlighted the significance of the year’s achievements amidst a thriving UAE economy. “2024 has been a remarkable year for RAKBank, marked by record profitability and growth across all segments,” Ahmed said. “While we remain cautiously optimistic in light of global economic uncertainties, our focus on sustainable growth remains steadfast.”

Continued Growth and Diversification

The bank’s total assets grew 19.4% to AED 88.3 billion, with increases in gross loans, investments, and cash reserves. Wholesale banking reflected a 35% growth, driven by corporate and financial institution lending, while retail banking expanded through strong sales momentum, including a 28.6% increase in mortgage loans.

RAKBank’s capital adequacy ratio stood at 18.1%, underscoring its robust liquidity and financial strength, ensuring continued growth in 2025 and beyond.