The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — Q1 2024 Earnings Presentation
21 slides from The National Bank Of Ras Al Khaimah's earnings presentation, May 2024
Slide 1: Q1'24 Earnings Presentation
Q1’24 Earnings Presentation May 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: Q1 2024 Key Highlights
1. KEY HIGHLIGHTS Q1 2024 Key Highlights Delivering record profitability, with robust and well diversified balance sheet growth, backed by solid capitalization Record Profitability & Solid Returns ▪ Income up 11% YoY on the back of double-digit balance sheet growth, industry leading NIM further supp
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 a stable our risk profile Total Business Assets by Segment Cost of Risk Continued Diversification of 15% Business Banking 2.5% 2.5% 29% 1.5% our Business for Sustainab
Slide 10: 3. Financial Performance
3. Financial Performance
Slide 11: Q1' 2024 Key Highlights
3. FINANCIAL PERFORMANCE Q1’ 2024 Key Highlights A record performance Strong Growth in Profitability Solid Balance Sheet Growth Robust Capital Position and Robust Returns YoY % YoY % YoY % Profit before tax (Mn) Total Assets (Bn) CAR 629 78.6 17.2% +40% +14% 33 bps F Total Income (Mn) Gross Loans &
Slide 12: Quarterly Income Statement
3. FINANCIAL PERFORMANCE Quarterly Income Statement Delivered an increase in Profit after tax of 28% YoY & a 15% increase in YoY Operating Profits for Q1 2024, on the back of strong net interest income growth Profit after tax (AED Mn) Profit after tax Movement YoY (AED Mn) +27.5% 574 76 -55 574 450
Slide 13: Income
3. FINANCIAL PERFORMANCE Income Quarterly income up 11% YoY to AED 1,174 million, through strong NIM performance and growth in Business Banking Total Income (AED Mn) Total Income Movement YoY (AED Mn) +11.0% 1,116 1,137 1,174 1,174 1,058 1,078 26 1,058 91 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Total Income Q
Slide 14: Operating Expenses
3. FINANCIAL PERFORMANCE Operating Expenses Cost-income ratio improved 236 basis points to 33.1% in Q1 2024 YoY with continued strong cost discipline Operating Expenses (AED Mn) Operating Expenses Movement YoY (AED Mn) +3.6% 434 406 388 -2 375 373 15 -19 388 375 20 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Expe
Slide 15: Provisions for Credit Loss
3. FINANCIAL PERFORMANCE Provisions for Credit Loss Cost of Risk further improved 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) -32.7% 260 251 261 233 233 6 -50 -32 157 15
Slide 16: Non-Performing Finance
3. FINANCIAL PERFORMANCE Non-Performing Finance Impaired Loan provision coverage ratio increased to 234% against 227% in Q4’23, remaining one of the strongest in the industry Non Performing Loans (AED Mn) Non Performing Loans Movement by Segment YoY (AED Mn) -4% 3.0% 3.0% 2.8% 2.5% 2.6% 2.6% 1,160 -
Slide 17: Balance Sheet
3. FINANCIAL PERFORMANCE Balance Sheet Growth on both sides of the balance sheet with 14% growth in Assets and 15% in Liabilities Assets and Liabilities (AED Bn) Total Assets Movement YoY (AED Bn) +14.9% 78.6 0.1 0.6 +14.1% 3.3 74.0 78.6 1.5 68.9 71.9 72.0 68.3 59.4 62.5 62.2 63.6 4.2 68.9 Mar’23 Ju
Slide 18: Transforming Our Asset Mix
3. FINANCIAL PERFORMANCE Transforming Our Asset Mix Maintained the balance of asset mix between segments/products with a strong growth in secured financing ( Mortgage loans : 21.5% growth YOY & 5 % vs Q4’23) Total Business Assets by Segment (AED Bn) Total Business Assets – Personal Banking (AED Bn)
Slide 19: Liabilities and Customer Deposits
3. FINANCIAL PERFORMANCE Liabilities and Customer Deposits 19% YoY deposits growth across all segments with CASA representing 64% of total deposits from customers Breakdown of Total Liabilities (exc. Equity) by Type Customer Deposits Movement YoY (AED Bn) 55.4 4% 4% 0.2 5% 5% 5% 7% 7% 7% 5% 7% 6.2 1
Slide 20: Capital
3. FINANCIAL PERFORMANCE Capital Robust capitalization well above regulatory requirements Breakdown of Equity (AED Bn) Capitalization Ratios (%) 18.5 10.4 10.3 9.4 9.4 9.8 17.7 17.8 2.0 2.0 17.2 1.7 2.0 2.0 16.8 4.3 4.3 17.4 3.9 4.0 3.9 16.6 16.7 16.1 15.7 3.8 3.4 3.8 4.0 4.0 Mar’23 Jun’23 Sep’23 De
Slide 21: Contact Useful Information
F Contact Useful Information E-mail: ir@rakbank.ae Download links for: Investor Relations Website Q1’24 Earnings Presentation | 21
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