The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — H1 2023 Earnings Presentation
24 slides from The National Bank Of Ras Al Khaimah's earnings presentation, July 2023
Slide 1: H1 2023 Earnings Presentation
H1 2023 Earnings Presentation July 2023
Slide 2: Disclaimer
Disclaimer The information in this document has been prepared by The National Bank of Ras Al Khaimah (P.S.C) a public joint stock company, United Arab Emirates (“RAKBANK”) and is general background information about RAKBANK’s activities and is not intended to be current as on the date of the documen
Slide 3: Table of Contents
Table of Contents 1. Key Highlights 2. RAKBANK and its Strategy 3. Financial Performance 4. Outlook
Slide 4: 1. Key Highlights
1. Key Highlights
Slide 5: H1 2023 – Key Highlights
1. KEY HIGHLIGHTS H1 2023 – Key Highlights Record net profit in H1 2023 with strong shareholder returns ▪ Highest ever half yearly net profit of AED 901 Mn, up 71% year on year driven by robust and diversified growth on both sides of the balance sheet. This was underpinned by strong sales momentum a
Slide 6: 2. RAKBANK Strategy
2. RAKBANK Strategy
Slide 7: RAKBANK - A Leading UAE Bank
2 . R A K B A N K A N D I T S S T R AT E G Y RAKBANK - A Leading UAE Bank Our Proud History Strong and Stable Credit Ratings ▪ Founded in 1976 and headquartered in the emirate of Ras Al Khaimah Rating Agency Last Update Ratings Outlook (‘RAK’) ▪ Major transformation in 2001, rebranding to RAKBANK an
Slide 8: Our 2026 Vision, Strategy and Objectives
2 . R A K B A N K A N D I T S S T R AT E G Y Our 2026 Vision, Strategy and Objectives 2026 Vision “Become the digital bank with a human touch, with you in key moments of truth” Key Strategic Pillars Become Bank of Choice for Personalize and Digitize Retail Build a Comprehensive Deliver cutting edge
Slide 9: Delivering On Our Strategic Objectives
2 . R A K B A N K A N D I T S S T R AT E G Y Delivering On Our Strategic Objectives We are maintaining a diversified asset mix… …And stabilizing our risk profile Total Business Assets by Segment Cost of Risk 19% 19% Business Banking 2.5% 2.6% Continued Diversification of our 1.5% 43% 40% Personal Ba
Slide 10: 3. Financial Performance
3. Financial Performance
Slide 11: H1 2023 Key Highlights
3. FINANCIAL PERFORMANCE H1 2023 Key Highlights We have more than doubled YoY our H1 2023 Net Profit at AED 901 million Strong Growth in Profitability Solid Balance Sheet Growth Robust Capital Position and Strong Return YoY % YoY % YoY % Net Profit (Mn) Total Assets (Bn) CAR 900.8 71.9 17.7% +71% +1
Slide 12: Quarterly Income Statement
3. FINANCIAL PERFORMANCE Quarterly Income Statement RAKBANK delivered a Net Profit increase of 47% YoY and 58.8% YoY Operating Profit growth for Q2 2023, on the back of strong net interest and fee income growth… Net profit (AED Mn) Net profit Movement YoY (AED Mn) +46.6% 450 450 36 -38 351 -120 450
Slide 13: Half Year Income Statement
3. FINANCIAL PERFORMANCE Half Year Income Statement …While delivering the highest ever half yearly Net Profit of AED 901 Mn, up 71% year on year, and an Operating Profit of AED 1,395 Mn, up 74% YoY Net profit (AED Mn) Net profit Movement YoY (AED Mn) +70.8% 901 134 -54 -220 901 527 514 527 H1’22 H1’
Slide 14: Revenue
3. FINANCIAL PERFORMANCE Revenue Quarterly revenue up 37% YoY to AED 1,116 million, through strong NIM performance and growth in all segments Total Income (AED Mn) Total Income Movement YoY (AED Mn) +36.9% 1,073 1,116 1,116 995 36 915 265 815 815 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Total Income Q2’22 Net
Slide 15: Operating Expenses
3. FINANCIAL PERFORMANCE Operating Expenses Cost-income ratio improved 1,170 basis points to 36.3% in Q2 2023 with strong cost discipline mitigating inflationary pressure Expenses (AED Mn) Expenses Movement YoY (AED Mn) +10.3% 389 406 406 368 373 371 368 8 -3 19 13 1 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Ex
Slide 16: Provisions for Impairments
3. FINANCIAL PERFORMANCE Provisions for Impairments Cost of Risk remained stable due to the Bank’s diverse business mix and resilient UAE economic environment Provisions for Impairments (AED Mn) Provisions for Impairments Movement per Segment YoY (AED Mn) +85.8% 339 260 36 -10 260 234 64 191 140 31
Slide 17: Non-Performing Finance
3. FINANCIAL PERFORMANCE Non-Performing Finance Impaired Loan provision coverage ratio increased to 231.5% against 142.1% in Q2’22, remaining one of the strongest in the industry Non Performing Loans (AED Mn) Non Performing Loans Movement by Segment YoY (AED Mn) -23% 3.4% 3.1% 3.0% 3.0% 1,275 2.5% -
Slide 18: Balance Sheet
3. FINANCIAL PERFORMANCE Balance Sheet Growth on both sides of the balance sheet with 16% growth in Assets and in Liabilities Assets and Liabilities (AED Bn) Total Assets Movement YoY (AED Bn) +16.0% 71.9 2.0 1.7 0.2 +15.5% 62.2 3.5 2.2 68.9 71.9 62.2 65.4 66.4 62.5 56.7 57.3 59.4 53.9 Jun’22 Sep’22
Slide 19: Transforming Our Asset Mix
3. FINANCIAL PERFORMANCE Transforming Our Asset Mix Maintained the balance of our asset mix between segments and products Total Business Assets by Segment (AED Bn) Total Business Assets – Personal Banking (AED Bn) 18.7 18.8 19.7 19.6 20.4 8.5 7.2 7.7 15.4 9.3 9.8 5.5 5.5 5.6 9.0 9.5 6.7 3.9 8.1 3.4
Slide 20: Liabilities and Customer Deposits
3. FINANCIAL PERFORMANCE Liabilities and Customer Deposits 19% YoY deposits growth with CASA representing 68% of total deposits from customers Breakdown of Total Liabilities (exc. Equity) by Type Customer Deposits Movement YoY (AED Bn) 49.0 4% 5% 4% 4% 4% -0.1 8% 8% 7% 7% 7% 41.0 -0.7 5.1 11% 11% 10
Slide 21: Capital
3. FINANCIAL PERFORMANCE Capital Robust capitalization well within regulatory requirements Breakdown of Equity (AED Bn) Capitalization Ratios (%) 9.0 9.4 9.4 8.3 8.7 17.7 1.7 1.7 2.0 1.7 16.8 17.0 16.8 1.7 16.4 4.0 4.4 4.0 4.4 4.8 16.6 15.7 15.9 15.7 3.4 3.4 3.4 15.3 2.2 2.2 Jun’22 Sep’22 Dec’22 Mar
Slide 22: 4. Outlook
4. Outlook
Slide 23: Market Outlook
4. OUTLOOK Market Outlook The UAE economy has recovered strongly from the pandemic years with robust continued performance expected despite potential global headwinds UAE Real GDP Growth (YoY % Change) Dubai Property Price Change (Median price per sqft.) Source: IMF World Economic Outlook Source: DX
Slide 24: Contact Useful Information
F Contact Useful Information Gregory Thomas Download links for: E-mail: ir@rakbank.ae / Gregory.Thomas@rakbank.ae Investor Relations Website H1 2023 Earnings Presentation | 24
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