The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — Q1 2023 Earnings Presentation
23 slides from The National Bank Of Ras Al Khaimah's earnings presentation, May 2023
Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation May 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: Q1 2023 – Key Highlights
1. KEY HIGHLIGHTS Q1 2023 – Key Highlights Record quarterly results with a net profit of AED 450 Mn, up 105% from last year 105% YoY increase in net income to AED 450 million in Q1 2023 driven by a robust and diversified growth on both sides of the balance sheet. This was underpinned by strong sal
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 reducing our risk profile Total Business Assets by Segment Cost of Risk Continued Diversification of our 19% 19% Business Banking 3.4% 2.5% 40% 40% Personal Banking 1.
Slide 10: 3. Financial Performance
3. Financial Performance
Slide 11: Q1 2023 Key Highlights
3. FINANCIAL PERFORMANCE Q1 2023 Key Highlights We have more than doubled our quarterly Net Profit at AED 450M for Q1’23 Strong Growth in Profitability Solid Balance Sheet Growth Robust Capital Position and Strong Return YoY % YoY % YoY % Net Profit (mn) Total Assets (bn) CAR 450.3 68.9 16.8% +105%
Slide 12: Income Statement
3. FINANCIAL PERFORMANCE Income Statement RAKBANK delivered a Net Profit increase of 105% for Q1 2023 on the back of strong net interest and fee income growth Net profit (AED mn) Net profit Movement YoY (AED mn) +104.6% 450 -17 351 98 -99 450 307 285 220 248 220 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Net Pro
Slide 13: Revenue
3. FINANCIAL PERFORMANCE Revenue Revenue up 48% to AED 1,073 million through strong NIM performance and growth in all segments Total Income (AED mn) Total Income Movement YoY (AED mn) +47.6% 1,073 1,073 995 915 98 815 248 727 727 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Total Income Q1’22 Net Interest Income N
Slide 14: Operating Expenses
3. FINANCIAL PERFORMANCE Operating Expenses Cost-income ratio improved 15 percentage points to 36.2% in Q1 2023 with strong cost discipline mitigating inflationary pressure Expenses (AED mn) Expenses Movement YoY (AED mn) +4.5% 372 368 373 371 389 372 389 17 -2 -6 -5 12 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23
Slide 15: Provisions for Impairments
3. FINANCIAL PERFORMANCE Provisions for Impairments Cost of Risk remained low 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) +73.9% 339 -18 234 234 -5 97 191 140 134 25 134
Slide 16: Non-Performing Finance
3. FINANCIAL PERFORMANCE Non-Performing Finance Impaired Loan provision coverage ratio increased to 192.1% against 137.8% in Q1’22, remaining one of the strongest in the industry Non Performing Loans (AED mn) Non Performing Loans Movement by Segment YoY (AED mn) 3.6% -13% 3.4% 3.1% 3.0% 3.0% 1,333 -
Slide 17: Balance Sheet
3. FINANCIAL PERFORMANCE Balance Sheet Growth on both sides of the balance sheet with 15% growth in Assets and 16% growth in Liabilities Assets and Liabilities (AED bn) Total Assets Movement YoY (AED bn) +16% 68.9 1.9 0.3 +15% 60.0 2.8 2.8 1.1 65.4 66.4 68.9 60.0 62.2 57.3 59.4 53.9 56.7 51.4 Mar’22
Slide 18: 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 19.1 19.6 19.8 7.7 8.0 7.2 15.4 5.9 5.9 6.0 9.3 9.6 9.3 6.7 8.1 9.0 3.5 3.0
Slide 19: Liabilities and Customer Deposits
3. FINANCIAL PERFORMANCE Liabilities and Customer Deposits 16% YoY deposits growth with CASA representing 70% of total deposits from customers Breakdown of Total Liabilities by Type Customer Deposits Movement YoY (AED bn) 46.4 4% 4% 5% 4% 4% 3.8 0.3 10% 8% 8% 7% 7% 39.8 3.1 -0.7 8% 11% 14% 11% 11% 7
Slide 20: Capital
3. FINANCIAL PERFORMANCE Capital Robust capitalization well within regulatory requirements Breakdown of Equity (AED bn) Capitalization Ratios (%) +10.0% 9.0 9.4 8.6 8.3 8.7 1.7 1.7 1.7 1.7 16.8 17.0 16.8 1.7 16.5 16.4 4.0 4.4 4.3 4.4 4.8 15.7 15.9 15.7 15.4 15.3 2.6 3.4 3.4 2.2 2.2 Mar’22 Jun’22 Sep
Slide 21: 4. Outlook
4. Outlook
Slide 22: Market Outlook
4. OUTLOOK Market Outlook The UAE economy has recovered strongly from the pandemic years with robust continued performance expected UAE Real GDP Growth (YoY % Change) Dubai Property Price Change (Median price per sqft.) Source: IMF World Economic Outlook Source: Dubai Land Department 7.4% +45.1% 4.3
Slide 23: Contact Useful Information
F Contact Useful Information Geraldine Dagher Download links for: Phone: +971 4 291 5064 Investor Relations Website E-mail: ir@rakbank.ae Q1 2023 Earnings Presentation | 23
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