For the period ended 31 March 2026
The National Bank of Ras Al-Khaimah (P.S.C.)
Introduction 3
Overview of risk management, key prudential metrics and RWA 3
Tab KM1 3
Tab OV1 5
Leverage ratio 6
Tab LR1 6
Tab LR2 7
Liquidity 8
Tab ELAR 8
Tab ASRR 8
-
Introduction
The Bank is required to publish Pillar 3 disclosures on a quarterly basis in line with the Central Bank of UAE (CBUAE) Standards and Guidance for Capital Adequacy of Banks in the UAE (hereinafter, Capital Adequacy Standards) and Explanatory Notes on Pillar 3 Disclosure requirements. The purpose of Pillar 3 - Market Disclosures is to enable market participants to access key information relating to a bank's regulatory capital and risk exposures in order to increase transparency and confidence about a bank's exposure to risk and the overall adequacy of its regulatory capital. These disclosures complement the Pillar 1 - Minimum Capital Requirements, Pillar 2 - Internal Capital Adequacy Assessment Process (ICAAP), and supervisory review process.
These disclosures have been prepared in accordance with the disclosure templates and requirements introduced by the Central Bank of the UAE under CBUAE/BSD/2022/5280 (December 2022). The Bank has a formal disclosure policy in place which highlights the roles and responsibilities of management and the Board of Directors (Board) with respect to public disclosures. The policy requires Senior Management to, through appropriate process documentation, ensure review and approval mechanism has been defined for these disclosures.
The Pillar 3 Disclosures should be read in conjunction with the published Financial Statements of the Bank. The scope of consolidation for Pillar 3 disclosures is different compared to the scope of consolidation for financial reporting. Under the scope of regulatory consolidation, all subsidiaries of the Bank are consolidated with the exception of Ras Al Khaimah National Insurance Company PSC in line with the requirement to exclude insurance entities for the purpose of regulatory reporting as per Capital Adequacy Standards. All sections of the following document have been prepared under the scope of regulatory capital consolidation specifications unless otherwise mentioned.
-
Overview of risk management, key prudential metrics and RWA
Tab KM1
Amounts in AED'000
a
b
c
d
31 Mar'26
31 Dec'25
30 Sep'25
30 Jun'25
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
12,481,187
11,714,344
12,490,128
11,767,754
1a
Fully loaded ECL accounting model
12,481,187
11,714,344
12,490,128
11,767,754
2
Tier 1
13,583,087
12,816,244
13,561,249
11,767,754
2a
Fully loaded ECL accounting model
Tier 1
13,583,087
12,816,244
13,561,249
11,767,754
3
Total capital
15,377,477
14,595,793
15,300,112
13,461,796
3a
Fully loaded ECL accounting model
total capital
15,377,477
14,595,793
15,300,112
13,461,796
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
82,020,011
80,643,757
78,041,945
71,814,082
5
Common Equity Tier 1 ratio (%)
15.2%
14.5%
16.0%
16.4%
5a
Fully loaded ECL accounting model
CET1 (%)
15.2%
14.5%
16.0%
16.4%
6
Tier 1 ratio (%)
16.6%
15.9%
17.4%
16.4%
6a
Fully loaded ECL accounting model
Tier 1 ratio (%)
16.6%
15.9%
17.4%
16.4%
7
Total capital ratio (%)
18.7%
18.1%
19.6%
18.7%
7a
Fully loaded ECL accounting model
total capital ratio (%)
18.7%
18.1%
19.6%
18.7%
8
Capital conservation buffer
requirement (2.5% from 2019) (%)
2.5%
2.5%
2.5%
2.5%
Amounts in AED'000
a
b
c
d
31 Mar'26
31 Dec'25
30 Sep'25
30 Jun'25
9
Countercyclical buffer requirement (%)*
0.0%
0.0%
0.0%
0.0%
10
Bank D-SIB additional requirements
(%)
0.0%
0.0%
0.0%
0.0%
11
Total of bank CET1 specific buffer
requirements (%)
2.5%
2.5%
2.5%
2.5%
12
CET1 available after meeting the
bank's minimum capital requirements (%)
8.1%
7.4%
8.9%
7.9%
Leverage Ratio
13
Total leverage ratio measure
117,537,825
115,678,518
109,401,845
105,082,136
14
Leverage ratio (%)
11.6%
11.1%
12.4%
11.2%
14a
Fully loaded ECL accounting model
leverage ratio (%)
11.6%
11.1%
12.4%
11.2%
14b
Leverage ratio (%) (excluding the
impact of any applicable temporary exemption of central bank reserves)
11.6%
11.1%
12.4%
11.2%
Liquidity Coverage Ratio
15
Total HQLA
16
Total net cash outflow
17
LCR ratio (%)
Net Stable Funding Ratio
18
Total available stable funding
19
Total required stable funding
20
NSFR ratio (%)
ELAR
21
Total HQLA
16,120,029
15,200,066
13,196,956
12,238,575
22
Total liabilities
91,264,463
88,218,063
83,607,090
80,709,662
23
Eligible Liquid Assets Ratio (ELAR) (%)
17.7%
17.2%
15.8%
15.2%
ASRR
24
Total available stable funding
89,316,817
85,823,109
82,431,371
76,698,816
25
Total Advances
66,151,613
66,042,098
63,329,370
61,873,258
26
Advances to Stable Resources Ratio
(%)
74.1%
77.0%
76.8%
80.7%
* As of 31st March 2026, the Bank's Countercyclical Capital Buffer (CCyB) requirement stands at 0.04%. Central Bank of the UAE reduced the CCyB rate from 0.5% to 0% on relevant private sector credit exposures in the UAE effective 17 March 2026.
The available capital and related capital ratios have improved compared to previous quarter primarily due to the inclusion of current year's profits. Liquidity ratios also show an improvement as a result of increased HQLA and available stable funding.
Tab OV1
AED'000
a
b
c
RWA
Minimum capital
requirements
31 Mar 2026
31 Dec 2025
31 Mar 2026
1
Credit risk (excluding counterparty credit risk)
69,106,828
67,602,762
7,256,217
2
Of which: standardised approach (SA)
69,106,828
67,602,762
7,256,217
3
Of which: foundation internal ratings-based (F-IRB) approach
4
Of which: supervisory slotting approach
5
Of which: advanced internal ratings-based (A-IRB)
approach
6
Counterparty credit risk (CCR)
713,046
875,271
74,870
7
Of which: standardised approach for counterparty
credit risk
713,046
875,271
74,870
8
Of which: Internal Model Method (IMM)
9
Of which: other CCR
10
Credit valuation adjustment (CVA)
271,335
425,885
28,490
11
Equity positions under the simple risk weight approach
12
Equity investments in funds - look-through approach
-
-
-
13
Equity investments in funds - mandate-based approach
-
-
-
14
Equity investments in funds - fall-back approach
-
-
-
15
Settlement risk
-
-
-
16
Securitisation exposures in the banking book
-
-
-
17
Of which: securitisation internal ratings-based
approach (SEC-IRBA)
18
Of which: securitisation external ratings-based approach (SEC-ERBA)
-
-
-
19
Of which: securitisation standardised approach (SEC-
SA)
-
-
-
20
Market risk
3,238,797
3,362,589
340,074
21
Of which: standardised approach (SA)
3,238,797
3,362,589
340,074
22
Of which: internal models approach (IMA)
23
Operational risk
8,690,006
8,377,250
912,451
24
Amounts below thresholds for deduction (subject to 250% risk weight)
25
Floor adjustment
26
Total
82,020,011
80,643,757
8,612,101
-
Leverage ratio
Tab LR1
a
31 Mar 2026 AED'000
Total consolidated assets as per published financial statements 107,322,537 Adjustments for investments in banking, financial, insurance or commercial entities that
are consolidated for accounting purposes but outside the scope of regulatory
consolidation 317,244
Adjustment for securitised exposures that meet the operational requirements for the
3
recognition of risk transference -
4 Adjustments for temporary exemption of central bank reserves (if applicable) -Adjustment for fiduciary assets recognised on the balance sheet pursuant to the
5
operative accounting framework but excluded from the leverage ratio exposure measure (632,282)
Adjustments for regular-way purchases and sales of financial assets subject to trade date
6
accounting -
Adjustments for eligible cash pooling transactions -
Adjustments for derivative financial instruments 1,145,297
Adjustment for securities financing transactions (i.e. repos and similar secured lending) 405,703 Adjustments for off-balance sheet items (i.e. conversion to credit equivalent amounts of
10
off-balance sheet exposures) 7,187,823
Adjustments for prudent valuation adjustments and specific and general provisions which
11
have reduced Tier 1 capital -
Other adjustments 1,791,503
- Leverage ratio exposure measure 117,537,825
The difference between the total assets as per consolidated financial statements and the leverage ratio exposure measure is primarily on account of off-balance sheet items including derivatives. Other adjustments mainly include adjustments for provisions and suspended interest, amongst others.
Tab LR2
a b
Amounts in AED'000 31 Mar 2026 31 Dec 2025
On-balance sheet exposures
1 On-balance sheet exposures (excluding derivatives and securities financing transactions
(SFTs), but including collateral)
109,241,828
107,111,308
2 Gross-up for derivatives collateral provided where deducted from balance sheet assets
pursuant to the operative accounting framework
231,247
110,836
3 (Deductions of receivable assets for cash variation margin provided in derivatives
transactions)
(458,372)
(297,160)
4 (Adjustment for securities received under securities financing transactions that are
recognised as an asset)
-
-
5 (Specific and general provisions associated with on-balance sheet exposures that are
deducted from Tier 1 capital)
-
-
6 (Asset amounts deducted in determining Tier 1 capital)
(442,824)
(431,060)
7 Total on-balance sheet exposures (excluding derivatives and SFTs)
108,571,879
106,493,924
Derivative exposures
8 Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or with bilateral netting)
354,221
475,916
9 Add-on amounts for PFE associated with all derivatives transactions
1,018,200
1,257,458
10 (Exempted CCP leg of client-cleared trade exposures)
-
-
11 Adjusted effective notional amount of written credit derivatives
-
-
12 (Adjusted effective notional offsets and add-on deductions for written credit derivatives)
-
-
13 Total derivative exposures
1,372,421
1,733,374
Securities financing transactions
14 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions
-
-
15 (Netted amounts of cash payables and cash receivables of gross SFT assets)
-
-
16 CCR exposure for SFT assets
405,703
398,190
17 Agent transaction exposures
-
-
18 Total securities financing transaction exposures
405,703
398,190
Other off-balance sheet exposures
19 Off-balance sheet exposure at gross notional amount
23,083,210
21,938,353
20 (Adjustments for conversion to credit equivalent amounts)
(15,895,388)
(14,885,323)
21 (Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital)
-
-
22 Off-balance sheet items
7,187,822
7,053,030
Capital and total exposures
23 Tier 1 capital
13,583,087
12,816,244
24 Total exposures
117,537,825
115,678,518
Leverage ratio
25 Leverage ratio (including the impact of any applicable temporary exemption of central bank reserves)
11.6%
11.1%
25a Leverage ratio (excluding the impact of any applicable temporary exemption of central
bank reserves)
11.6%
11.1%
26 CBUAE minimum leverage ratio requirement
3.0%
3.0%
27 Applicable leverage buffers
0.0%
0.0%
Tier 1 Capital and consequently, the Leverage Ratio have improved due to the inclusion of current year profits.
- Liquidity
Tab ELAR
Amounts in AED'000 | |||
1 | High Quality Liquid Assets | Nominal amount | Eligible Liquid Asset |
1.1 | Physical cash in hand at the bank + balances with the CBUAE | 11,639,066 | |
1.2 | UAE Federal Government Bonds and Sukuks | 3,446,534 | |
Subtotal | 15,085,600 | 15,085,600 | |
1.3 | UAE local governments publicly traded debt securities | 936,402 | |
1.4 | UAE Public sector publicly traded debt securities | - | |
Subtotal | 936,402 | 936,402 | |
1.5 | Foreign Sovereign debt instruments or instruments issued by their respective central banks | 98,027 | 98,027 |
1.6 | Total | 16,120,029 | 16,120,029 |
2 | Total liabilities | 91,264,463 | |
3 | Eligible Liquid Assets Ratio (ELAR) | 17.7% | |
Tab ASRR
Amounts in AED'000 | ||
Items | Amount | |
1 | Computation of Advances | |
1.1 | Net Lending (gross loans - specific and collective provisions + interest in suspense) | 51,824,492 |
1.2 | Lending to non-banking financial institutions | 4,381,780 |
1.3 | Net Financial Guarantees & Stand-by LC (issued - received) | 823,663 |
1.4 | Interbank Placements | 9,121,678 |
1.5 | Total Advances | 66,151,613 |
2 | Calculation of Net Stable Resources | |
2.1 | Total capital + general provisions | 17,017,047 |
Deduct: | ||
2.1.1 | Goodwill and other intangible assets | 278,745 |
2.1.2 | Fixed Assets | 641,888 |
2.1.3 | Funds allocated to branches abroad | - |
2.1.5 | Unquoted Investments | 53,907 |
2.1.6 | Investment in subsidiaries, associates and affiliates | 351,544 |
2.1.7 | Total deduction | 1,326,084 |
2.2 | Net Free Capital Funds | 15,690,963 |
2.3 | Other stable resources: | |
2.3.1 | Funds from the head office | - |
2.3.2 | Interbank deposits with remaining life of more than 6 months | 3,489,741 |
2.3.3 | Refinancing of Housing Loans | - |
2.3.4 | Borrowing from non-Banking Financial Institutions | 5,700,598 |
2.3.5 | Customer Deposits | 62,237,001 |
2.3.6 | Capital market funding/ term borrowings maturing after 6 months from reporting date | 2,198,514 |
2.3.7 | Total other stable resources | 73,625,854 |
2.4 | Total Stable Resources | 89,316,817 |
3 | Advances To Stable Resources Ratio | 74.1 |