RAKBANK has reported impressive financial results for the first half of 2024, showcasing significant growth in key metrics. The bank’s net profit before tax surged by 33% to AED 1.2 billion, while net profit after tax increased by 21% year-on-year, reaching AED 1.1 billion.
Total income for the period rose by 8.7% to AED 2.3 billion, bolstered by a robust net interest margin of 4.6% and increased income from foreign exchange and investments. The bank’s operating expenditure also saw a modest increase of 3% year-on-year, amounting to AED 789 million, as RAKBANK continues to invest in technology and talent development.
The bank’s total assets grew by 11.9% year-on-year, reaching AED 80.4 billion. Gross loans and advances rose by 9.4% to AED 43.7 billion, driven by a strong performance across all segments, particularly in wholesale banking loans and advances, which saw a notable 19.4% increase. Customer deposits experienced a significant rise of 19.4%, totaling AED 58.5 billion, with a Current Account Savings Account (CASA) ratio of 61.6%.
RAKBANK’s return on equity stood at an impressive 20.4%, and the return on assets was 2.9% year-to-date. The bank maintained a strong capital adequacy ratio of 18.0% and an eligible liquid asset ratio of 15.5%. Notably, the cost of risk improved to 1.7%, down from 2.6% in the first half of 2023, while the impaired loan ratio decreased to 2.4% from 2.6% as of December 31, 2023.
For the second quarter of 2024, RAKBANK reported an operating income of AED 1.174 billion, marking a 6.6% increase year-on-year. Profit before tax for the quarter was AED 566 million, reflecting a 25.6% rise compared to the same period last year. Gross loans and advances for the quarter grew by 1.1% from the first quarter of 2024, with mortgage loans surpassing the AED 10 billion mark. Customer deposits for the quarter increased by 5.6% from the previous quarter, driven by growth in both time and CASA deposits.
RAKBANK’s robust financial performance in the first half of 2024 highlights its strong market position and effective strategic initiatives, setting a positive outlook for the remainder of the year.
