Stock-Rakbank Image Credit: Supplied

Dubai: RAKBANK delivers a record quarterly net profit after tax of Dh574.2 million, a growth of 27.5 per cent driven by continued momentum on both sides of the balance sheet in Q1. Net Interest Income at Dh879.5 million is up 11.5 per cent year-on-year, supported by a robust fee income of Dh294.9 million, up 9.6 per cent year-on-year.

During the period, gross loans and advances at Dh43.2 billion were up 11.7 per cent year-on-year (up 2.9 per cent vs Q4-23). Corporate Banking has grown by over 30 per cent, and corporate loans and advances have crossed Dh10 billion for the first time.

Customer deposits are up 19.5 per cent year-on-year (9.9 per cent vs. Q4-23). The bank continues to build primary operating account relationships with its customers, which is reflected in one of the highest CASA ratios in the industry, at 64 per cent as of Q1-24.

Total Income for Q1-24, at Dh1,174 billion, is up 11 per cent year-on-year, supported by a net interest margin of 4.7 per cent.

Continued migration to digital channels by customers, targeted operating efficiencies, and robust revenue momentum led to a drop in the Cost to Income ratio to 33.1 per cent against 35.4 per cent in Q1-23.

Shareholder returns remain strong, with a Return on Equity (ROE) of 21.4 per cent and a Return on Assets (ROA) of 3.1 per cent for Q1-24. The bank remains liquid and well capitalized with a Capital Adequacy Ratio (CAR) of 17.2 per cent vs 16.8 per cent as of Q1-23.

Strong liquidity position as reflected by an Eligible Liquid Asset Ratio of 13.5 per cent and Advances to Stable Resources Ratio of 78.7 per cent as at Q1-24.

The impaired loan ratio improved to 2.6 per cent for Q1-24 against 3.0 per cent for the previous year as the risk profile of the bank continues to reduce. While the provision coverage ratio improved to 233.7 per cent against 192.1 per cent (Q1-23) and remains one of the highest in the industry.