The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — Q3 2024 Earnings Presentation
20 slides from The National Bank Of Ras Al Khaimah's earnings presentation, November 2024
Slide 1: Earnings Presentation Q3 | September 24 YTD
Earnings Presentation Q3|September 24’ YTD November 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 4. Appendix
Slide 4: 1. Key Highlights
1. Key Highlights
Slide 5: Record profit before tax of AED 1.9B for Sep'24 YTD, up 37% YoY
1. KEY HIGHLIGHTS RAKBANK achieves a record profit before tax of AED 1.9B for Sep’24 YTD, up 37% YoY. Delivered through execution of the Bank’s strategy, continued business momentum, and strong credit quality Sep’24 YTD Key Highlights Profit before Tax Total Assets CIR 1,854 M 83.9 B 33.6% +37% YoY
Slide 6: 2. RAKBANK Strategy
2. RAKBANK Strategy
Slide 7: 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 8: 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 Continued Diversification of Become the most Personalized Deliver Scalable Growth Ongoing Commitment to our our Business for Sustainable Invest in Our People Bank in UAE with a Brilliant through Personalization & Com
Slide 9: 3. Financial Performance
3. Financial Performance
Slide 10: Record Profit After Tax of AED 1.7B, Growth of 25% YoY
3. FINANCIAL PERFORMANCE RAKBANK Delivers Record Profit After Tax of AED 1.7B, Growth of 25% YoY Income Statement Q3|Sep’24 YTD Income Statement – Summary Sep’24 YTD YoY % Q3'24 YoY % (AED M) Net Interest Income 2,663 8.3% 902 7.0% ▪ NII supported by well-diversified balance sheet growth across all
Slide 11: Consistent Double-Digit Growth in Profit Resulting in Strong Shareholder Returns
3. FINANCIAL PERFORMANCE Consistent Double-Digit Growth in Profit Resulting in Strong Shareholder Returns Profit After Tax (AED M) 9.5% 13.5% 18.4% 18.9% 20.6% 1,784 +24.9% 1,689 F +53.4% 1,353 1,163 758 FY 2021 FY 2022 FY2023 Sep’23 YTD Sep’24 YTD ROE % Numbers may not add up due to rounding Q3|Sep
Slide 12: Positive Jaws with Total Income Growth Ahead of Costs
3. FINANCIAL PERFORMANCE Due to positive Jaws with Total Income Growth Significantly Ahead of Increase in Costs Strong Growth in Net Interest Income and Improving Cost/Income Ratio Operating Income (AED M) Operating Expenses (AED M) +55 bps (962) bps 4.0% 4.1% 4.9% 4.8% 4.6% 43.2% 42.3% 36.4% 36.2%
Slide 13: Supported by Growth of the Balance Sheet
3. FINANCIAL PERFORMANCE Supported by Growth of the Balance Sheet Strong Loan Book Across Segment and Deposit Growth Underpinned by CASA Deposits Evolution of Gross Loans (AED B) Evolution of Customer Deposits (AED B) 86% 80% 78% 81% 10.1% 7.6% 10.1% 16.5% 75% 70% 67% 62% 48.9 CAGR +11.3% 57.3 CAGR
Slide 14: Underpinned by Prudent Risk Management
3. FINANCIAL PERFORMANCE Underpinned by Prudent Risk Management High Quality Balance Sheet As a Testament to Strong Underwriting Criteria Cost of Risk Non-Performing Loan Ratio Decline of (154) bps Decline of (174) bps 4.0% 3.0% 2.6% 2.2% 3.1% F 2.5% 2.5% 2.1% Dec’21 Dec’22 Dec’23 Sep’24 Loan Provis
Slide 15: Transforming Our Asset Mix
3. FINANCIAL PERFORMANCE Transforming Our Asset Mix Strategic Diversification and Risk Reduction in Asset Portfolio Total Business Assets by Segment (AED B) Total Business Assets – Personal Banking (AED B) 11.1 18% 21% 30% 36% 7.2 5.5 5.6 30% 3.9 3.3 35% 14% 2.5 16% 2.1 FY 2021 Sep’24 YTD F Mortgage
Slide 16: Strong Financial Base Supporting Sustainable Growth
3. FINANCIAL PERFORMANCE Strong financial Base Supporting Sustainable Growth The Bank remains liquid and well capitalized Breakdown of Equity (AED B) Capitalization Ratios 11.6 10.8 19.6%* 10.4 10.3 9.8 2.0 2.0 18.5% 2.0 2.0 2.0 17.8% 18.0% 4.5 17.2% 4.3 3.9 4.3 4.3 17.4% 16.9% 17.1% 16.7% 16.1% 4.5
Slide 17: 4. Appendix
4. Appendix
Slide 18: 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 RAKBANK Awards & Accolades ▪ Founded in 1976 and headquartered in the emirate of Ras Al Khaimah (‘RAK’) ▪ Major transformation in 2001, rebranding to RAKBANK ▪ Listed on Abu Dhabi Securities Exchange (AD
Slide 19: Balance Sheet: Sep'24 Highlights
3. FINANCIAL PERFORMANCE Balance Sheet: Sep’24 Highlights Investments (AED B) Gross Loans and Deposits by Geography 15.6 15.3 13.2 13.8 10.0 Gross Loans Deposits 48.9 B 57.3 B F Sep’23 Dec’23 Mar’24 Jun’24 Sep’24 Investment Quality and Geography 4% 3% 8% 3% 5% 7% 8% 17% 8% 34% 44% 63% 21% 60% 12% 80
Slide 20: Contact Useful Information
F Contact Useful Information E-mail: ir@rakbank.ae Download links for: Investor Relations Website Q3|Sep'24 YTD Earnings Presentation | 20
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