RAKBank reported a 53.4 per cent jump in net profit at Dh1.16 billion for the full year ended 2022, it said on Monday, while total income grew 6.9 per cent at Dh3.42 billion.
Income growth for the full year was supported by a strong net interest income of Dh2.49 billion, up 14.8 per cent year-on-year, while non-interest income stood at Dh962.5 million, lower by 9.4 per cent year-on-year mainly due to lower trading profits in Q1’22, the lender said.
“Just as the UAE economy accelerated its post-COVID recovery in 2022, RAKBank’s performance has entered a new and transformative era of growth. Following this strong recovery, we are now on track for sustained expansion underpinned by targeted investments and a sharp focus on fiscal and operational resilience,” said chairman Mohamed Omran Alshamsi.
“Looking ahead, we foresee 2023 to be a year of opportunity in the midst of uncertainty caused by geopolitical and economic headwinds. Therefore, we will diversify our business mix and further strengthen our credit profile and lay the foundation of a long term, sustainable growth.”
The bank’s Board of Directors has recommended the distribution of a cash dividend of 34 fils per share.
CEO Raheel Ahmed said the performance marks a year of reset for the bank – “a reset of performance, a reset of strategy, a reset of the way we work”.
“With the successful completion of the reset phase, now it is time to deliver on the new strategy. We will continue to develop a sustainable business mix including growing the contribution of ‘lower risk’ segments such as Wholesale Banking, Commercial Banking and the Affluent Segment. We will change the way the Bank generates revenue by reducing our reliance on unsecured lending and increasing the proportion of fee and non-financing income as well as driving cross-sell across all segments. Finally, we will create a more scalable business by making investments to enhance our digital journeys and capabilities and improve efficiency in both customer acquisition and servicing,” he said.
Gross loans and advances stood at Dh38.1 billion, a 7.6 per cent increase year-on-year, while customer deposits were reported at Dh44.9 billion, up 15.3 per cent y-o-y.