RAK Bank, one of the leading banks in the UAE, has reported a decade-high profit surge of 53.4%. The bank has attributed the significant growth to the strong performance of both sides of the balance sheet. The bank’s net profit for 2021 amounted to AED 1.31 billion ($356.4 million) compared to AED 853.4 million ($232.4 million) in 2020.
The robust increase on both sides of the balance sheet indicates a balanced approach to the bank’s operations, with the bank achieving solid growth in both loans and deposits. RAK Bank has been successful in expanding its customer base, which has resulted in a significant increase in deposits. At the same time, the bank has maintained a healthy loan book, with a focus on asset quality.
The bank has also reported an increase in net interest income, which is a key indicator of a bank’s profitability. Net interest income increased by 9.8% to AED 2.3 billion ($625.6 million) in 2021, compared to AED 2.1 billion ($571.9 million) in 2020. The bank’s total operating income also increased by 18.7% to AED 3.3 billion ($897.2 million) in 2021, compared to AED 2.8 billion ($761.3 million) in 2020.
“The growth was diversified across all of our segments and was accompanied by growths in total assets of 15.5 per cent, loans & advances of 7.6 per cent. It is also worth noting that customer deposits grew by 15.3 per cent YoY and CASA ratio was 70.4 per cent as of 31 December 2022 – an important achievement given the rising interest rate environment.
He said the bank has seen balance sheet momentum across Wholesale Banking and Business Banking segments that grew by Dh1.589 billion (18.3 per cent YoY) and Dh996 million (12.4 per cent YoY), respectively. Retail banking grew by Dh102.8 million (0.5 per cent YoY).
Gross loans & advances at Dh38.1B billion, reflects a 7.6 per cent increase YoY on the back of a changing balance sheet mix in line with the strategic direction of the bank, the bank said. Customer deposits stood at Dh44.9 billion, an increase of 15.3 per cent YoY.
RAK Bank has been able to achieve these impressive results despite the challenging economic conditions caused by the COVID-19 pandemic. The bank has demonstrated resilience and adaptability, with a focus on digital transformation and customer experience. The bank has invested heavily in technology, enabling it to offer innovative products and services to its customers.
The bank’s CEO, Peter England, has said that the bank’s strong performance is a testament to the dedication and hard work of the bank’s employees. He has also emphasized the bank’s commitment to supporting the UAE’s economic growth by providing financial solutions to individuals and businesses.
RAK Bank’s impressive profit growth is a result of the bank’s balanced approach to operations, with a focus on customer experience and digital transformation. The bank’s strong performance despite the challenging economic conditions caused by the COVID-19 pandemic demonstrates the bank’s resilience and adaptability. RAK Bank’s commitment to supporting the UAE’s economic growth by providing financial solutions to individuals and businesses is a positive sign for the future of the UAE’s economy.
