The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — FY2022 Earnings Presentation
27 slides from The National Bank Of Ras Al Khaimah's earnings presentation, April 2023
Slide 1: Q4/FY'2022 Earnings Presentation
Q4/FY’2022 Earnings Presentation April 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. 2023 Outlook 5. ESG 6. Our Awards
Slide 4: 1. Key Highlights
1. Key Highlights
Slide 5: 2022 – Key Highlights
1. KEY HIGHLIGHTS 2022 – Key Highlights During 2022 we refreshed our strategy with a vision to “become the digital bank with a human touch, with you in key moments of truth” Delivering a brilliant customer experience via seamless digital journeys and hyper-personalization will underpin our value
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 continuing to diversify our asset mix… …And improve our risk profile Total Business Assets by Segment Cost of Risk 4.8% Continued Diversification of our 22% 20% 19% Business Banking 3.1% 43% 39% Personal Banki
Slide 10: 2. Financial Performance
2. Financial Performance
Slide 11: Key Highlights
2. FINANCIAL PERFORMANCE Key Highlights 2022 saw a return to growth and a significant improvement in profitability Strong Growth in Profitability Solid Balance Sheet Growth Robust Capital Position and Strong Return YoY % YoY % YoY % Net Profit (mn) Total Assets (bn) CAR 1,163 66.5 16.4% +53.4% +15.5
Slide 12: Income Statement
2. FINANCIAL PERFORMANCE Income Statement 53% YoY growth in net profit driven by positive jaws and reduced provisions Net profit (AED mn) Net profit Movement YoY (AED mn) +53.4% 1,100 1,163 1,163 918 -100 273 321 -89 758 758 505 FY’18 FY’19 FY’20 FY’21 FY’22 Net Profit FY’21 Net Interest Non-Interes
Slide 13: Revenue
2. FINANCIAL PERFORMANCE Revenue Revenue up by 7% to AED 3,452 million driven by net interest income growth and maintaining a robust NIM Total Income (AED mn) Total Income Movement YoY (AED mn) Growth driven by margins on deposits +6.9% in Business Banking 3,827 3,979 3,452 3,564 3,452 3,231 321 -10
Slide 14: Operating Expenses
2. FINANCIAL PERFORMANCE Operating Expenses Cost to Income ratio improving supported by cost control despite inflationary pressures Expenses (AED mn) Expenses Movement YoY (AED mn) +6.4% 1,570 1,488 1,484 1,395 1,396 1,484 1,396 76 -9 6 -12 27 FY’18 FY’19 FY’20 FY’21 FY’22 Expenses Staff Costs Depre
Slide 15: Provisions for Impairments
2. FINANCIAL PERFORMANCE Provisions for Impairments A 25% decline in impairments due to improved risk profile and strong UAE economic performance Provisions for Impairments (AED mn) Provisions for Impairments Movement per Segment YoY (AED mn) 1,663 1,421 1,077 1,313 -25.3% 1,077 -347 804 30 804 -90
Slide 16: Non-Performing Finance
2. FINANCIAL PERFORMANCE Non-Performing Finance Significant improvement of NPL ratio and Coverage due to improved risk profile and strong UAE economic performance Non Performing Loans (AED mn) Non Performing Loans Movement by Segment YoY (AED mn) 5.2% -19% 4.2% 4.0% 4.0% 1,416 -189 1,141 3.0% -55 -3
Slide 17: Balance Sheet
2. FINANCIAL PERFORMANCE Balance Sheet 15% broad based growth in Assets and 17% growth in Liabilities driven by customer deposits Assets and Liabilities (AED bn) Total Assets Movement YoY (AED bn) +17% 66.5 2.0 0.8 0.6 +15% 57.6 2.5 3.0 66.5 57.1 57.6 57.5 52.7 49.3 52.8 49.2 45.5 44.9 Dec ’18 Dec ’
Slide 18: Transforming Our Asset Mix
2. FINANCIAL PERFORMANCE Transforming Our Asset Mix Improving the balance of our asset mix between segments and products Total Business Assets by Segment (AED bn) Total Business Assets – Personal Banking (AED bn) 18.8 19.6 7.7 16.7 17.4 6.8 15.4 5.9 6.0 5.6 5.9 12.5 9.3 6.7 8.3 8.1 9.0 5.3 3.5 3.0 2
Slide 19: Liabilities and Customer Deposits
2. FINANCIAL PERFORMANCE Liabilities and Customer Deposits Deposit growth of 15% while maintaining a strong CASA contribution Breakdown of Total Liabilities by Type Customer Deposits Movement YoY (AED bn) 44.9 5% 5% 5% 4% 4% 3.7 -0.1 11% 10% 8% 11% 7% 38.9 3.0 -0.7 10% 10% 5% 6% 11% 75% 75% 82% 79%
Slide 20: Capital
2. FINANCIAL PERFORMANCE Capital Robust capitalization well within regulatory requirements Breakdown of Equity (AED bn) Capitalization Ratios (%) +7.7% 18.6 9.0 18.1 8.4 17.8 17.8 7.8 7.8 1.7 17.2 7.1 1.7 16.8 17.0 16.8 17.0 1.7 1.7 16.5 16.4 1.7 17.5 4.0 4.1 17.0 4.1 4.1 16.7 16.7 4.0 16.0 15.7 15.
Slide 21: 3. 2023 Outlook
3. 2023 Outlook
Slide 22: Market Outlook
3. 2023 OUTLOOK Market Outlook The UAE economy has recovered strongly from the pandemic years with robust continued performance expected UAE GDP Growth (YoY % Change) Dubai Property Price Change (Median price per sqft.) Source: IMF World Economic Outlook Source: Dubai Land Department 5.1% 4.2% 4.2%
Slide 23: 4. ESG
4. ESG
Slide 24: Developing Our ESG Agenda
4. ESG Developing Our ESG Agenda RAKBANK is committed to ESG with the Board approving a refreshed framework and approach during 2022 ESG Agenda Highlights During 2022 the Bank has reduced GHG Emissions by 15%, Electricity Consumption by 13% and Water Consumption by 6% Announced a partnership wit
Slide 25: 5. Our Awards
5. Our Awards
Slide 26: An Award Winning Franchise
5. OUR AWARDS An Award Winning Franchise UAE’s Mid-sized UAE’s SME Bank Domestic Retail Best SME Bank Best SME Bank in of the Year Bank of the Year Banking Excellence UAE Asian Banking & Asian Banking & Awards Global Finance Finance Awards Finance Awards Magazine UAE’s Fraud Number 2 Top Initiative
Slide 27: Contact Useful Information
F Contact Useful Information Geraldine Dagher Download links for: Phone: +971 4 291 5064 Financial Statements Email: ir@rakbank.ae Earnings release with Management Discussion & Analysis Q4/FY’2022 Earnings Presentation | 27
The National Bank of Ras Al Khaimah (RAKBANK) — FY2022 Earnings Presentation on 6ix