The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — 9M 2023 Earnings Presentation
23 slides from The National Bank Of Ras Al Khaimah's earnings presentation, October 2023
Slide 1: 9M 2023 Earnings Presentation
9M 2023 Earnings Presentation October 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
Slide 4: 1. Key Highlights
1. Key Highlights
Slide 5: 9M 2023 – Key Highlights
1. KEY HIGHLIGHTS 9M 2023 – Key Highlights Record net profit in 9M 2023 with strong shareholder returns ▪ Highest ever 9M net profit of AED 1,353 Mn, up 54% year on year driven by robust and diversified growth on both sides of the balance sheet. This was underpinned by strong sales momentum and stro
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 (‘RAK’) Rating Agency Last Update Ratings Outlook ▪ 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 2.6% 2.5% Continued Diversification of our 2.0% 42% 40% Personal Ba
Slide 10: Social Finance Framework
2 . R A K B A N K A N D I T S S T R AT E G Y Social Finance Framework In line with RAKBANK’s overarching sustainability strategy, the Bank has established a social finance framework RAKBANK has established a comprehensive Framework that enables RAKBANK Group to issue social finance instruments. Thes
Slide 11: 3. Financial Performance
3. Financial Performance
Slide 12: 9M 2023 Key Highlights
3. FINANCIAL PERFORMANCE 9M 2023 Key Highlights A record performance for the period Strong Growth in Profitability Solid Balance Sheet Growth Robust Capital Position and Robust Returns YoY % YoY % YoY % Net Profit (Mn) Total Assets (Bn) CAR 1,353 72.0 18.5% +54% +10% +160 bps F Total Income (Mn) Gro
Slide 13: 9M Income Statement
3. FINANCIAL PERFORMANCE 9M Income Statement We achieved the highest ever 9M Net Profit of AED 1,353 Mn, up 54% year on year, and an Operating Profit of AED 2,097.4 Mn, up 56% YoY Net profit (AED Mn) Net profit Movement YoY (AED Mn) +53.9% 1,353 165 -116 -279 1,353 879 704 879 9M’22 9M’23 Net Profit
Slide 14: Quarterly Income Statement
3. FINANCIAL PERFORMANCE Quarterly Income Statement RAKBANK delivered a Net Profit increase of 29% YoY and 29.6% YoY Operating Profit growth for Q3 2023, on the back of strong net interest and fee income growth… Net profit (AED Mn) Net profit Movement YoY (AED Mn) +28.7% 450 450 452 32 -61 351 -60 4
Slide 15: Revenue
3. FINANCIAL PERFORMANCE Revenue Quarterly revenue up 24.2% YoY to AED 1,137 million, through strong NIM performance and growth in Retail and Business Banking Total Income (AED Mn) Total Income Movement YoY (AED Mn) +24.2% 1,073 1,116 1,137 1,137 995 32 915 915 190 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Tota
Slide 16: Operating Expenses
3. FINANCIAL PERFORMANCE Operating Expenses Cost-income ratio improved 250 basis points to 38.2% in Q3 2023 with strong cost discipline mitigating inflationary pressure and ongoing infrastructure investment Expenses (AED Mn) Expenses Movement YoY (AED Mn) +16.4% 434 434 389 406 2 1 13 373 371 373 33
Slide 17: Provisions for Credit Loss
3. FINANCIAL PERFORMANCE Provisions for Credit Loss Cost of Risk remained stable due to the Bank’s diverse business mix and resilient UAE economic environment Provisions for Credit Loss (AED Mn) Provisions for Credit Loss Movement per Segment YoY (AED Mn) +31.5% 339 260 101 -78 251 251 234 -6 191 19
Slide 18: Non-Performing Finance
3. FINANCIAL PERFORMANCE Non-Performing Finance Impaired Loan provision coverage ratio increased to 210.3% against 156.5% in Q3’22, remaining one of the strongest in the industry Non Performing Loans (AED Mn) Non Performing Loans Movement by Segment YoY (AED Mn) +1% 3.1% 3.0% 3.0% 2.8% 1,153 1,162 2
Slide 19: Balance Sheet
3. FINANCIAL PERFORMANCE Balance Sheet Growth on both sides of the balance sheet with 10.2% growth in Assets and 9.7% in Liabilities Assets and Liabilities (AED Bn) Total Assets Movement YoY (AED Bn) +9.7% 72.0 65.4 0.4 2.4 0.3 0.6 +10.2% 2.9 68.9 71.9 72.0 65.4 66.4 62.5 62.2 56.7 57.3 59.4 Sep’22
Slide 20: 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) 20.1 19.6 20.4 9.1 18.7 18.8 7.2 7.7 15.4 9.3 9.2 5.5 5.5 5.7 9.0 9.8 6.7 8.1 3.9 3.4
Slide 21: Liabilities and Customer Deposits
3. FINANCIAL PERFORMANCE Liabilities and Customer Deposits 16% YoY deposits growth across all segments with CASA representing 68% of total deposits from customers Breakdown of Total Liabilities (exc. Equity) by Type Customer Deposits Movement YoY (AED Bn) 48.5 5% 4% 4% 4% 5% 0.2 8% 7% 7% 7% 7% 41.8
Slide 22: Capital
3. FINANCIAL PERFORMANCE Capital Robust capitalization well within regulatory requirements Breakdown of Equity (AED Bn) Capitalization Ratios (%) 18.5 9.4 9.4 9.8 8.7 9.0 17.7 1.7 2.0 2.0 17.0 1.7 1.7 16.8 16.4 3.9 17.4 4.0 4.4 4.0 3.9 16.6 15.9 15.7 3.4 3.4 3.4 3.8 15.3 3.1 Sep’22 Dec’22 Mar’23 Jun
Slide 23: Contact Useful Information
F Contact Useful Information Gregory Thomas Download links for: E-mail: ir@rakbank.ae Investor Relations Website Q3 2023 Earnings Presentation | 23
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