RAKBank reports profit before tax of Dh2.3 billion

Ras Al Khaimah: The National Bank of Ras Al Khaimah (RAKBank) has reported a profit before tax of Dh 2.3 billion for 2024, a 27 per cent year-on-year (YoY) increase. The bank said in a statement that this marks the first time in the bank’s history that its pre-tax profit has crossed the Dh2 billion threshold.

RAKBank total income for 2024 reached Dh4.7 billion, up 7 per cent y-o-y, driven by diversified asset growth, stable CASA deposits, and enhanced non-interest income. Net profit after tax rose to Dh2.1 billion, a 16 per cent increase compared to 2023. 

The bank’s total assets grew by 19 per cent y-o-y to Dh88.3 billion, supported by robust growth in gross loans and advances, which crossed Dh 50 billion, up 19 per cent. Customer deposits increased by 18 per cent to Dh59.6 billion, with a CASA ratio of 62.7 per cent, one of the highest in the industry. 

Mohamed Omran Alshamsi, Chairman of RAKBank, attributed the record-breaking performance to the bank’s commitment to ‘innovation, operational efficiency, and customer-centric solutions’. “Surpassing the Dh2 billion profit milestone reflects RAKBANK’s dedication to excellence and its role as a key partner in the UAE’s economic growth,” he said. 

Operating expenses stood at Dh 1.7 billion, increasing y-o-y by 3.6 per cent, with Cost to income ratio (CIR) at 35.2 per cent compared to 36.4 per cent for FY’23, as the bank continues to scale the business and deliver operational efficiencies through investment in technology and strategic cost management initiatives.

Gross loans and advances stood at Dh50.3 billion as of December 2024, up 19.2 per cent y-o-y, and customer deposits were at Dh59.6 billion, which grew 18.4 per cent y-o-y. CEO Raheel Ahmed also said the success of the bank’s transformation strategy is an increased focus on becoming a "digital bank with a human touch." Key initiatives included enhanced digital banking services, the launch of a microfinance product, and supporting over 91,000 SMEs. 

Ahmed expressed cautious optimism, citing strong UAE economic performance despite global uncertainties. “Our prudent risk management and strategic investments in technology position us for sustained growth in 2025,” he said.