RAKBANK has announced a record quarterly net profit after tax of AED574.2m ($156.3m).
It represents growth of 27.5 per cent (up 39.7 per cent on pre-tax basis) driven by continued momentum on both sides of the balance sheet in Q1.
Net Interest Income at AED879.5m is up 11.5 per cent year-on-year (YoY), supported by a robust fee income of AED294.9m up 9.6 per cent YoY.
RAKBANK Q1 results
Raheel Ahmed, Group CEO, said: “Our strategic transformation is progressing well as we stay steadfast in our journey towards becoming the ‘digital bank with a human touch.’
“In line with our diversification strategy, I am pleased to announce that our corporate loans and advances have crossed AED10bn.
“Our Wholesale Banking business now represents 28 per cent of our income and 40 per cent of our profit before tax.
“Furthermore, our fee income grew by 9.6 per cent YoY, further underscoring the diversity of our income sources”.
Highlights of the RAKBANK quarterly report include:
- Gross loans and advances at AED43.2bn are up 11.7 per cent YoY.
- Corporate Banking has grown by more than 30 per cent, and corporate loans and advances have crossed AED10bn for the first time
- Customer deposits are up 19.5 per cent YoY
- Total Income for Q1 was AED 1.174bn, up 11 per cent YoY, 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 2023.
Raheel Ahmed added: “Whilst the UAE economy continues to demonstrate positive momentum and growth as we enter the second quarter of 2024, we closely monitor the headwinds of inflation, rising interest rates and geopolitical developments.
“We are closely assessing the impact of the unprecedented weather conditions on our customers and how best we can support them”.
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