The National Bank Of Ras Al Khaimah · ADX:RAKBANK
The National Bank Of Ras Al Khaimah — FY2023 Earnings Presentation
23 slides from The National Bank Of Ras Al Khaimah's earnings presentation, February 2024
Slide 1: Q4/FY'2023 Earnings Presentation
Q4/FY’2023 Earnings Presentation February 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: 2023 Key Highlights
1. KEY HIGHLIGHTS 2023 Key Highlights Delivering record historical profitability, with robust and well diversified balance sheet growth, backed by solid capitalization Record Profitability & Solid Returns ▪ Income up 30% YoY on the back of double-digit balance sheet growth, industry leading NIM augm
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 Continued Diversification of 15% Business Banking 3.1% 2.5% 31% 2.1% our Business for Sustai
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: FY 2023 Key Highlights
3. FINANCIAL PERFORMANCE FY 2023 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 1,798 74.0 17.8% +55% +12% +140 bps F Total Income (Mn) Gross Loans
Slide 13: FY 2023 Income Statement
3. FINANCIAL PERFORMANCE FY 2023 Income Statement RAKBANK achieved the highest ever annual Profit after tax of AED 1,784 Mn, up 53% year on year, and an Operating Profit of AED 2,802.9 Mn, up 43% YoY Profit after tax (AED Mn) Profit after tax Movement YoY (AED Mn) +53.4% 1,784 162 -166 -208 1,784 -1
Slide 14: Quarterly Income Statement
3. FINANCIAL PERFORMANCE Quarterly Income Statement Delivered a Profit after tax increase of 52% YoY and 15% YoY Operating Profit growth for Q4 2023, on the back of strong net interest growth and lower provisions Profit after tax (AED Mn) Profit after tax Movement YoY (AED Mn) +51.6% 450 450 452 431
Slide 15: Income
3. FINANCIAL PERFORMANCE Income Quarterly income up 15% YoY to AED 1,078 million, through strong NIM performance and growth in Business Banking Total Income (AED Mn) Total Income Movement YoY (AED Mn) +14.9% 1,073 1,116 1,137 1,078 1,078 -4 939 143 939 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Total Income Q4’2
Slide 16: Operating Expenses
3. FINANCIAL PERFORMANCE Operating Expenses Cost-income ratio improved 21 basis points to 34.6% in Q4 2023 with strong cost discipline mitigating inflationary pressure and ongoing investment Expenses (AED Mn) Expenses Movement YoY (AED Mn) +15.6% 434 373 389 406 373 -5 12 322 -6 17 33 322 Q4’22 Q1’2
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) -21.4% 332 332 260 251 261 261 234 -4 -185 1
Slide 18: Non-Performing Finance
3. FINANCIAL PERFORMANCE Non-Performing Finance Impaired Loan provision coverage ratio increased to 227% against 182% in Q4’22, remaining one of the strongest in the industry Non Performing Loans (AED Mn) Non Performing Loans Movement by Segment YoY (AED Mn) -3% 3.0% 3.0% 2.8% 2.5% 2.6% 1,141 210 -1
Slide 19: Balance Sheet
3. FINANCIAL PERFORMANCE Balance Sheet Growth on both sides of the balance sheet with 12% growth in Assets and 11% in Liabilities Assets and Liabilities (AED Bn) Total Assets Movement YoY (AED Bn) +10.9% 74.0 0.5 +11.5% 1.0 1.8 68.9 71.9 72.0 74.0 0.9 66.3 62.5 62.2 63.6 57.3 59.4 3.4 66.3 Dec’22 Ma
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) 9.3 7.2 7.7 32.0% 31.0% 36.2% 5.5 5.5 5.7 48.1% 52.7% 53.7% 3.9 3.4 2.4 2.8 2.1 2.2 15
Slide 21: Liabilities and Customer Deposits
3. FINANCIAL PERFORMANCE Liabilities and Customer Deposits 16% YoY deposits growth across all segments with CASA representing 67% of total deposits from customers Breakdown of Total Liabilities (exc. Equity) by Type Customer Deposits Movement YoY (AED Bn) 50.4 4% 4% -0.1 4% 5% 5% 7% 7% 7% 7% 5% 3.4
Slide 22: Capital
3. FINANCIAL PERFORMANCE Capital Robust capitalization well within regulatory requirements Breakdown of Equity (AED Bn) Capitalization Ratios (%) +14.7% 18.5 10.4 9.4 9.4 9.8 17.7 17.8 9.0 2.0 1.7 2.0 2.0 16.8 1.7 16.4 4.3 17.4 4.0 4.4 4.0 3.9 16.6 16.7 One of the 15.7 highest CET 1 3.8 4.0 15.3 rat
Slide 23: Contact Useful Information
F Contact Useful Information Gregory Thomas Download links for: E-mail: ir@rakbank.ae Investor Relations Website Q4/FY 2023 Earnings Presentation | 23
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