RAKBank reported a 53.4% increase in net profit for 2023, reaching Dh1.78 billion, with operating income rising by 29.7% to Dh4.4 billion during the same period. The bank credited its 2023 profit to solid growth on both sides of the balance sheet, resulting in net interest income of Dh3.3 billion, a 34% increase, supported by a robust fee income of Dh1.1 billion, up 17.8%.
The bank’s operating income saw a 29.7% year-on-year increase, backed by a net interest margin of 4.9%, higher interest rates, and robust foreign exchange and investment income performance. Gross loans and advances reached Dh42.0 billion, marking a 10.1% increase year-on-year, with wholesale banking loans and advances growing at 16.3%.
“We are, on the one hand, deepening our multi-year transformation to build out important foundations in terms of digital, technology and ways of working to become the leader in customer experience,” said HE Mohammad Omran Alshamsi, Chairman of RAKBank. “On the other hand, we have achieved record financials in revenue, profit, business assets and customer deposits.”
As of December, the bank’s total assets stood at Dh74 billion, compared to Dh66.3 billion at the end of the previous year. Cash and cash equivalents reached Dh7.9 billion in the last year, reflecting an increase of Dh1.4 billion compared to December 2022.
“Being the leading SME bank in the UAE, we will continue to support entrepreneurs and small businesses that are one of the greatest assets in a flourishing economy,” said Raheel Ahmed, Group CEO of RAK Bank. “We opened over 10K accounts for start-ups and SMEs whilst providing them Dh2.2 billion in financing to establish or scale their businesses. Equally, we grew commercial SME business by 68% year-on-year.”
RAKBank’s gross interest income and income from Islamic financing increased by Dh1.57 billion, offset by an increase in interest expense and distributions to depositors by Dh729.5 million. Interest income from conventional loans and investments rose by Dh1.46 billion, while interest costs on traditional deposits and borrowings increased by Dh627.3 million. Net income from Sharia-compliant financing increased by Dh10 million due to improved yields on loans and investment books.
