RAKBANK delivers a record quarterly net profit after tax of AED 574.2 million, a growth of 27.5% driven by continued momentum on both sides of the balance sheet in Q1’24. Net interest income at AED 879.5 million is up 11.5% year-on-year (YoY), supported by a robust fee income of AED 294.9 million up 9.6%.
Gross loans and advances at AED 43.2 billion are up 11.7% YoY. Corporate banking has grown by over 30%, and corporate loans and advances have crossed AED 10 billion for the first time.
Customer deposits are up 19.5% YoY. The bank continues to build primary operating account relationships with its customers, which is reflected through one of the highest CASA ratios in the industry at 64% as at Q1 2024.
Total income for Q1 2024 at AED 1,174 million, is up 11% YoY, supported by a net interest margin of 4.7%.
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% against 35.4% in Q1 2023.
Shareholder returns remain strong with a return on equity (ROE) of 21.4% and a return on assets (ROA) of 3.1% for Q1 2024. The bank remains liquid and well capitalised with a capital adequacy ratio (CAR) at 17.2% vs 16.8% as at Q1 2023.
Strong liquidity position as reflected by an eligible liquid asset ratio of 13.5% and advances to a stable resources ratio of 78.7% as at Q1 2024.
The impaired loan ratio improved to 2.6% for Q1 2024 against 3% for the previous year as the risk profile of the bank continues to reduce. The provision coverage ratio improved to 233.7% against 192.1% (Q1 2023) and remains one of the highest in the industry.
