RAKBank reported a 33% surge in net profit before tax of Dh1.2 billion for the first half of 2024. The bank’s net profit after tax rose by 21% year-on-year to Dh1.1 billion.
Total income for the first half of 2024 reached Dh2.3 billion, an 8.7% increase from the previous year. This growth was supported by a net interest margin of 4.6% and higher income from foreign exchange and investments. Operating expenditure increased by 3% year-on-year to Dh789 million, reflecting the bank’s ongoing investment in technology and talent.
RAKBank’s total assets grew by 11.9% year-on-year to Dh80.4 billion. Gross loans and advances rose by 9.4% to Dh43.7 billion, driven by growth across all segments, including a 19.4% increase in wholesale banking loans and advances. Customer deposits increased by 19.4% to Dh58.5 billion, with a CASA ratio of 61.6%.
The bank’s return on equity stood at 20.4%, and the return on assets was 2.9% year-to-date. RAKBank maintained a strong capital adequacy ratio of 18.0% and an eligible liquid asset ratio of 15.5%. The cost of risk improved to 1.7%, down from 2.6% in the first half of 2023, while the impaired loan ratio decreased to 2.4% from 2.6% as of December 31, 2023.
For the second quarter of 2024, RAKBank reported an operating income of Dh1.174 billion, a 6.6% increase year-on-year. Profit before tax for the quarter was Dh566 million, reflecting a 25.6% rise compared to the same period last year. Gross loans and advances for the quarter grew by 1.1% from the first quarter of 2024, with mortgage loans surpassing the Dh10 billion mark. Customer deposits for the quarter increased by 5.6% from the previous quarter, driven by growth in both time and CASA deposits.
