For the period ended 31 March 2025
The National Bank of Ras Al-Khaimah (P.S.C.)
The National Bank of Ras Al-Khaimah (P.S.C.) | 1
Table of Contents1. Introduction | 3 | |
2. Overview of risk management, key prudential metrics and RWA Tab KM1 | 3 | 3 |
Tab OV1 | 5 | |
3. Leverage ratio Tab LR1 | 6 | 6 |
Tab LR2 | 7 | |
4. Liquidity Tab ELAR | 8 | 8 |
Tab ASRR | 8 |
The National Bank of Ras Al-Khaimah (P.S.C.) | 2
-
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.
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
e
31 Mar'25
31 Dec'24
30 Sep'24
30 Jun'24
31 Mar'24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
11,092,115
10,586,339
11,274,416
10,612,786
10,083,286
1a
Fully loaded ECL accounting model
11,092,115
10,342,078
11,043,536
10,386,660
9,879,642
2
Tier 1
11,092,115
10,586,339
11,274,416
10,612,786
10,083,286
2a
Fully loaded ECL accounting model
Tier 1
11,092,115
10,342,078
11,043,536
10,386,660
9,879,642
3
Total capital
12,748,389
12,220,761
12,900,099
11,286,975
10,743,594
3a
Fully loaded ECL accounting model
total capital
12,748,389
11,973,447
12,666,333
11,058,022
10,537,407
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
68,594,606
67,530,692
65,803,921
62,863,890
62,552,373
Risk-based capital ratios as a percentage of RWA
5
Common Equity Tier 1 ratio (%)
16.2%
15.7%
17.1%
16.9%
16.1%
5a
Fully loaded ECL accounting model
CET1 (%)
16.2%
15.4%
16.8%
16.6%
15.8%
6
Tier 1 ratio (%)
16.2%
15.7%
17.1%
16.9%
16.1%
6a
Fully loaded ECL accounting model
Tier 1 ratio (%)
16.2%
15.4%
16.8%
16.6%
15.8%
7
Total capital ratio (%)
18.6%
18.1%
19.6%
18.0%
17.2%
7a
Fully loaded ECL accounting model
total capital ratio (%)
18.6%
17.8%
19.3%
17.7%
16.9%
Additional CET1 buffer requirements as a percentage of RWA
8
Capital conservation buffer
requirement (2.5% from 2019) (%)
2.5%
2.5%
2.5%
2.5%
2.5%
9
Countercyclical buffer requirement
(%)
0.0%
0.0%
0.0%
0.0%
0.0%
The National Bank of Ras Al-Khaimah (P.S.C.) | 3
Amounts in AED'000
a
b
c
d
e
31 Mar'25
31 Dec'24
30 Sep'24
30 Jun'24
31 Mar'24
10
Bank D-SIB additional requirements
(%)
0.0%
0.0%
0.0%
0.0%
0.0%
11
Total of bank CET1 specific buffer
requirements (%)
2.5%
2.5%
2.5%
2.5%
2.5%
12
CET1 available after meeting the
bank's minimum capital
requirements (%)
7.7%
7.2%
8.6%
7.5%
6.7%
Leverage Ratio
13
Total leverage ratio measure
99,913,407
96,120,986
91,871,665
88,247,756
85,849,412
14
Leverage ratio (%)
11.1%
11.0%
12.3%
12.0%
11.7%
14a
Fully loaded ECL accounting model
leverage ratio (%)
11.1%
10.8%
12.0%
11.8%
11.5%
14b
Leverage ratio (%) (excluding the
impact of any applicable temporary
exemption of central bank reserves)
11.1%
11.0%
12.3%
12.0%
11.7%
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
13,212,005
12,246,531
10,567,929
10,687,834
9,191,592
22
Total liabilities
77,486,945
74,733,107
70,544,936
68,982,697
67,896,118
23
Eligible Liquid Assets Ratio (ELAR)
(%)
17.1%
16.4%
15.0%
15.5%
13.5%
ASRR
24
Total available stable funding
74,852,237
72,271,932
69,515,321
67,158,923
64,996,152
25
Total Advances
57,159,079
57,976,262
55,892,731
53,301,531
51,158,720
26
Advances to Stable Resources Ratio
(%)
76.4%
80.2%
80.4%
79.4%
78.7%
The available capital and related ratios have improved compared to previous quarter primarily due to the inclusion of current year profits. Advances to Stable Resources Ratio (ASRR) has improved due to an increase in the volume of eligible customer deposits and interbank borrowings alongside a drop in interbank lending.
The National Bank of Ras Al-Khaimah (P.S.C.) | 4
Tab OV1
AED'000
a
b
c
RWA
Minimum capital
requirements
31 Mar 2025
31 Dec 2024
31 Mar 2025
1
Credit risk (excluding counterparty credit risk)
58,279,545
56,705,048
6,119,352
2
Of which: standardised approach (SA)
58,279,545
56,705,048
6,119,352
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)
445,990
360,717
46,829
7
Of which: standardised approach for counterparty
credit risk
445,990
360,717
46,829
8
Of which: Internal Model Method (IMM)
9
Of which: other CCR
10
Credit valuation adjustment (CVA)
316,372
228,066
33,219
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
2,393,544
3,077,707
251,322
21
Of which: standardised approach (SA)
2,393,544
3,077,707
251,322
22
Of which: internal models approach (IMA)
23
Operational risk
7,159,154
7,159,154
751,711
24
Amounts below thresholds for deduction (subject
to 250% risk weight)
25
Floor adjustment
26
Total
68,594,606
67,530,692
7,202,434
Risk Weighted Assets (RWA) on CCR and CVA have increased due to higher mark-to-market on derivative contracts which have led to higher Exposure at Default (EAD).
The National Bank of Ras Al-Khaimah (P.S.C.) | 5
-
Leverage ratio
Tab LR1
a
31 Mar 2025
AED'000
Total consolidated assets as per published financial statements 90,803,679 Adjustments for investments in banking, financial, insurance or commercial entities that
are consolidated for accounting purposes but outside the scope of regulatory
consolidation
Adjustment for securitised exposures that meet the operational requirements for the
317,244
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 (481,387)
Adjustments for regular-way purchases and sales of financial assets subject to trade date -accounting
Adjustments for eligible cash pooling transactions -
Adjustments for derivative financial instruments 967,565
Adjustment for securities financing transactions (i.e. repos and similar secured lending) 419,323 Adjustments for off-balance sheet items (i.e. conversion to credit equivalent amounts of
Adjustments for prudent valuation adjustments and specific and general provisions which
11
have reduced Tier 1 capital
-
12 Other adjustments
2,093,690
13 Leverage ratio exposure measure
99,913,407
10 off-balance sheet exposures) 5,793,293
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.
The National Bank of Ras Al-Khaimah (P.S.C.) | 6
Tab LR2
a b
31 Mar 2025 31 Dec 2024
Amounts in AED'000
On-balance sheet exposures
On-balance sheet exposures (excluding derivatives and securities financing transactions
1 93,106,350
90,562,900
2 Gross-up for derivatives collateral provided where deducted from balance sheet assets 182,627
196,235
3 (Deductions of receivable assets for cash variation margin provided in derivatives (182,063)
(296,606)
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)
(373,124)
(372,895)
7 Total on-balance sheet exposures (excluding derivatives and SFTs)
92,733,790
90,089,634
Derivative exposures
8 Replacement cost associated with all derivatives transactions (where applicable net of
349,460
339,662
9 Add-on amounts for PFE associated with all derivatives transactions
617,541
633,479
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
967,001
973,141
Securities financing transactions
14 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting
-
-
15 (Netted amounts of cash payables and cash receivables of gross SFT assets)
-
-
16 CCR exposure for SFT assets
419,323
449,737
17 Agent transaction exposures
-
-
18 Total securities financing transaction exposures
419,323
449,737
Other off-balance sheet exposures
19 Off-balance sheet exposure at gross notional amount
18,315,711
17,282,316
20 (Adjustments for conversion to credit equivalent amounts)
(12,522,418)
(12,673,842)
21
(Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital)
-
-
22 Off-balance sheet items
5,793,293
4,608,474
Capital and total exposures
23 Tier 1 capital
11,092,115
10,586,339
24 Total exposures
99,913,407
96,120,986
Leverage ratio
(SFTs), but including collateral)
pursuant to the operative accounting framework transactions)
eligible cash variation margin and/or with bilateral netting)
transactions
25 Leverage ratio (including the impact of any applicable temporary exemption of central 11.1%
11.0%
bank reserves)
25a Leverage ratio (excluding the impact of any applicable temporary exemption of central 11.1%
11.0%
bank reserves)
26 CBUAE minimum leverage ratio requirement
3.0%
3.0%
27 Applicable leverage buffers
0.0%
0.0%
Off-balance sheet exposures have increased due to an increase in unutilised Wholesale Banking limits. Tier 1 Capital and consequently, the Leverage Ratio have improved due to the inclusion of current year profits.
The National Bank of Ras Al-Khaimah (P.S.C.) | 7
- 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 | 9,870,580 | |
1.2 | UAE Federal Government Bonds and Sukuks | 2,518,875 | |
Subtotal | 12,389,455 | 12,389,455 | |
1.3 | UAE local governments publicly traded debt securities | 689,754 | |
1.4 | UAE Public sector publicly traded debt securities | - | |
Subtotal | 689,754 | 689,754 | |
1.5 | Foreign Sovereign debt instruments or instruments issued by their respective central banks | 132,796 | 132,796 |
1.6 | Total | 13,212,005 | 13,212,005 |
2 | Total liabilities | 77,486,945 | |
3 | Eligible Liquid Assets Ratio (ELAR) | 17.1% | |
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) | 45,371,937 |
1.2 | Lending to non-banking financial institutions | 3,539,361 |
1.3 | Net Financial Guarantees & Stand-by LC (issued - received) | 1,046,885 |
1.4 | Interbank Placements | 7,200,896 |
1.5 | Total Advances | 57,159,079 |
2 | Calculation of Net Stable Resources | |
2.1 | Total capital + general provisions | 14,418,830 |
Deduct: | ||
2.1.1 | Goodwill and other intangible assets | 206,738 |
2.1.2 | Fixed Assets | 580,083 |
2.1.3 | Funds allocated to branches abroad | - |
2.1.5 | Unquoted Investments | 422,690 |
2.1.6 | Investment in subsidiaries, associates and affiliates | 346,544 |
2.1.7 | Total deduction | 1,556,055 |
2.2 | Net Free Capital Funds | 12,862,775 |
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 | 6,740,806 |
2.3.3 | Refinancing of Housing Loans | - |
2.3.4 | Borrowing from non-Banking Financial Institutions | 1,914,008 |
2.3.5 | Customer Deposits | 51,142,616 |
2.3.6 | Capital market funding/ term borrowings maturing after 6 months from reporting date | 2,192,032 |
2.3.7 | Total other stable resources | 61,989,462 |
2.4 | Total Stable Resources | 74,852,237 |
3 | Advances To Stable Resources Ratio | 76.4% |
The National Bank of Ras Al-Khaimah (P.S.C.) | 8