The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — H1 2024 Earnings Presentation
21 slides from The National Bank Of Ras Al Khaimah's earnings presentation, August 2024
Slide 1: H1'24 Earnings Presentation
H1’24 Earnings Presentation August 2024
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 Strategy 3. Financial Performance
Slide 4: 1. Key Highlights
1. Key Highlights
Slide 5: H1 2024 Key Highlights
1. KEY HIGHLIGHTS H1 2024 Key Highlights Delivering record profitability, with robust and well diversified balance sheet growth, backed by solid capitalization Record Profitability & Solid Returns ▪ 33% YoY increase in Profit before tax to AED 1.2Bn in H1 2024 ▪ Total Income risen to AED 2.3Bn, 8.7%
Slide 6: 2. RAKBANK Strategy
2. RAKBANK Strategy
Slide 7: RAKBANK - Leading Bank in The UAE
2 . R A K B A N K A N D I T S S T R AT E G Y RAKBANK - Leading Bank in The UAE Our Proud History Majority Owned by the Government of Ras Al Khaimah ▪ Founded in 1976 and headquartered in the emirate of Ras Al Khaimah Others GCC Nationals (‘RAK’) 1% ▪ Major transformation in 2001, rebranding to RAKBA
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 a stable our risk profile Total Business Assets by Segment Cost of Risk Continued Diversification of 16% 15% Business Banking 2.6% 2.5% 32% 29% 2.0% our Business for S
Slide 10: 3. Financial Performance
3. Financial Performance
Slide 11: H1'2024 Key Highlights
3. FINANCIAL PERFORMANCE H1’ 2024 Key Highlights Another Record-breaking Performance Continued momentum in Profitability Consistent Balance Sheet Growth Robust Capital Position and Returns YoY % YoY % YoY % Profit before Tax (Mn) Total Assets (Bn) CAR 1,195 80.4 18.0% +33% +12% +23 bps F Total Incom
Slide 12: Income Statement
3. FINANCIAL PERFORMANCE Income Statement 33% growth in Profit before Tax driven by strong performance, favorable interest rate environment and a secure loan portfolio Profit After Tax Quarterly Trend (AED Mn) Profit After Tax Movement YoY (AED Mn) +14.4% 574 516 1,090 450 450 452 127 (106) 431 44 (
Slide 13: Operating Income
3. FINANCIAL PERFORMANCE Operating Income Consistent growth in Operating Income in the 1st Half of 2024 attributed to stable NIM performance and expansion across segments Operating Income Quarterly Trend (AED Mn) Operating Income Movement YoY (AED Mn) +6.5% 1,166 1,174 1,174 2,348 1,058 1,102 1,078
Slide 14: Operating Expenses
3. FINANCIAL PERFORMANCE Operating Expenses Cost-to-Income ratio remains within the positive trend reflecting increased focus on expense management Operating Expenses Quarterly Trend (AED Mn) Operating Expenses Movement YoY (AED Mn) +2.0% 434 393 388 400 5 (3) 375 373 29 5 (52) 789 768 37 Q1’23 Q2’2
Slide 15: Provisions for Credit Loss
3. FINANCIAL PERFORMANCE Provisions for Credit Loss Cost of Risk remains at record low levels with Net Impairment Charge improving significantly Year-over-Year Net Impairment Charge Quarterly Trend (AED Mn) Net Impairment Charge Movement by Segment YoY (AED Mn) -19.8% 259 251 261 233 491 (18) 31 208
Slide 16: Non-Performing Loans
3. FINANCIAL PERFORMANCE Non-Performing Loans Provisions to Gross Loans ratio increased to 6.1% against 5.7% in Q2’23 Non-Performing Loans Overview (AED Mn) Non-Performing Loans Movement by Segment YoY (AED Mn) +6% 2.8% 2.5% 2.6% 2.6% 2.4% (53) 1,044 113 981 3 1,162 1,108 1,113 1,044 981 Jun’23 Sep’
Slide 17: Balance Sheet
3. FINANCIAL PERFORMANCE Balance Sheet Expansion in business activity and a strong customer base provide sustainable growth across all segments Assets and Liabilities (AED Bn) Total Assets Movement YoY (AED Bn) 11% 80.4 1.3 (0.1) +12% 2.2 78.6 80.4 1.4 71.9 72.0 74.0 69.6 63.6 68.3 62.5 62.2 3.8 71.
Slide 18: Transforming Our Asset Mix
3. FINANCIAL PERFORMANCE Transforming Our Asset Mix Balanced asset mix between segments/products with a strong growth in secured financing Total Business Assets by Segment (AED Bn) Total Business Assets – Personal Banking (AED Bn) 10.1 29% 7.2 35% 5.5 5.6 50% 56% 3.9 15% 2.4 2.5 15% 2.1 FY 2021 2024
Slide 19: Liabilities and Customer Deposits
3. FINANCIAL PERFORMANCE Liabilities and Customer Deposits Growing Customer Deposits base while maintaining strong CASA ratio Breakdown of Total Liabilities (exc. Equity) by Category Customer Deposits Movement by Category YoY (AED Bn) 58.5 4% 5% 5% 5% 4% 0.2 7% 5% 4% 7% 7% 6.7 8% 10% 11% 7% 10% (0.2
Slide 20: Capital
3. FINANCIAL PERFORMANCE Capital Solid financial foundation supporting sustainable growth and operational integrity Breakdown of Equity (AED Bn) Capitalization Ratios (%) 18.5% 10.4 10.3 10.8 18.0% 9.8 17.7% 17.8% 9.4 2.0 2.0 2.0 17.2% 2.0 2.0 4.3 17.4% 3.9 4.3 4.3 16.9% 4.0 16.6% 16.7% 16.1% 3.8 4.
Slide 21: Contact Useful Information
F Contact Useful Information E-mail: ir@rakbank.ae Download links for: Investor Relations Website H1’24 Earnings Presentation | 21
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