Q2 Pillar 3 Disclosures (consolidated pillar 3 disclosures q2 2025)

For the period ended 30 June 2025

The National Bank of Ras Al-Khaimah (P.S.C.)

1. ‌Introduction

   The Bank is required to publish Pillar 3 disclosures on a quarterly basis in line with the Central Bank of UAE (CBUAE) Standards & Guidance for Capital Adequacy of Banks in the UAE Capital Adequacy (hereinafter, Capital Adequacy Standards) and Pillar 3 Explanatory Notes. Pillar 3 - Market Disclosure complements Pillar 1 - Minimum Capital Requirements and Pillar 2 - Internal Capital Adequacy Assessment Process (ICAAP) and supervisory review process. The purpose of Pillar 3 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.

   The Pillar 3 Disclosures should be read in conjunction with 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 Capital Adequacy Standards. All sections of the following document have been prepared under the scope of regulatory consolidation unless specifically mentioned.

2. ‌Overview of risk management, key prudential metrics and RWA

   ‌Tab KM1

   	Amounts in AED'00	a	b	c	d	e
   		30 Jun'25	31 Mar'25	31 Dec'24	30 Sep'24	30 Jun'24
   	Available capital (amounts)
   1	Common Equity Tier 1 (CET1)	11,767,754	11,092,115	10,586,339	11,274,416	10,612,786
   1a	Fully loaded ECL accounting model	11,767,754	11,092,115	10,342,078	11,043,536	10,386,660
   2	Tier 1	11,767,754	11,092,115	10,586,339	11,274,416	10,612,786
   2a	Fully loaded ECL accounting model Tier 1	11,767,754	11,092,115	10,342,078	11,043,536	10,386,660
   3	Total capital	13,461,796	12,748,389	12,220,761	12,900,099	11,286,975
   3a	Fully loaded ECL accounting model total capital	13,461,796	12,748,389	11,973,447	12,666,333	11,058,022
   	Risk-weighted assets (amounts)
   4	Total risk-weighted assets (RWA)	71,814,082	68,594,606	67,530,692	65,803,921	62,863,890
   	Risk-based capital ratios as a percentage of RWA
   5	Common Equity Tier 1 ratio (%)	16.4%	16.2%	15.7%	17.1%	16.9%
   5a	Fully loaded ECL accounting model CET1 (%)	16.4%	16.2%	15.4%	16.8%	16.6%
   6	Tier 1 ratio (%)	16.4%	16.2%	15.7%	17.1%	16.9%
   6a	Fully loaded ECL accounting model Tier 1 ratio (%)	16.4%	16.2%	15.4%	16.8%	16.6%
   7	Total capital ratio (%)	18.7%	18.6%	18.1%	19.6%	18.0%
   7a	Fully loaded ECL accounting model total capital ratio (%)	18.7%	18.6%	17.8%	19.3%	17.7%
   	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%
   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 (%)	7.9%	7.7%	7.2%	8.6%	7.5%
   	Leverage Ratio
   13	Total leverage ratio measure	105,082,136	99,913,407	96,120,986	91,871,665	88,247,756
   14	Leverage ratio (%)	11.2%	11.1%	11.0%	12.3%	12.0%
   14a	Fully loaded ECL accounting model leverage ratio (%)	11.2%	11.1%	10.8%	12.0%	11.8%
   14b	Leverage ratio (%) (excluding the impact of any applicable temporary exemption of central bank reserves)	11.2%	11.1%	11.0%	12.3%	12.0%
   	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	12,238,575	13,212,005	12,246,531	10,567,929	10,687,834
   22	Total liabilities	80,709,662	77,486,945	74,733,107	70,544,936	68,982,697
   23	Eligible Liquid Assets Ratio (ELAR) (%)	15.2%	17.1%	16.4%	15%	15.5%
   	ASRR
   24	Total available stable funding	76,698,816	74,852,237	72,271,932	69,515,321	67,158,923
   25	Total Advances	61,873,258	57,159,079	57,976,262	55,892,731	53,301,531
   26	Advances to Stable Resources Ratio (%)	80.7%	76.4%	80.2%	80.4%	79.4%

   Capital ratios and Leverage Ratio have slightly improved due to the inclusion of Quarter 2 profits in Tier 1 Capital.

   The drop in ELAR is a result of lower balances placed with CBUAE as well as an increase in total liabilities, driven by an increase in balances due to other banks, primarily coming from borrowings under repurchase agreements.

   ASRR has increased due to an increase in interbank placements with maturity exceeding three months, primarily on account of an increase in lending under reverse repurchase agreements.

   ‌Tab OV1

   AED'000

   a

   b

   c

   RWA

   Minimum capital

   requirements

   30 Jun 2025 31 Mar 2025 30 Jun 2025

   1 Credit risk (excluding counterparty credit risk) 61,037,557 58,279,545 6,408,943

   Of which: foundation internal ratings-based (F-IRB) approach Of which: supervisory slotting approach

   Of which: advanced internal ratings-based (A-IRB) approach

2 Of which: standardised approach (SA) 61,037,557 58,279,545 6,408,943

3

4

5

6 Counterparty credit risk (CCR) 568,838 445,990 59,728

7 Of which: standardised approach for counterparty credit risk 568,838 445,990 59,728

8

9

10 Credit valuation adjustment (CVA) 456,957 316,372 47,980

11

1. Equity investments in funds - look-through approach - - -

2. Equity investments in funds - mandate-based approach - - -

3. Equity investments in funds - fall-back approach - - -

4. Settlement risk - - -

   Of which: securitisation internal ratings-based approach (SEC-IRBA)

1. Securitisation exposures in the banking book - - -

17

1. Of which: securitisation external ratings-based approach (SEC-ERBA) - - -

2. Of which: securitisation standardised approach (SEC-SA) - - -

3. Market risk 1,934,770 2,393,544 203,151

   Of which: internal models approach (IMA)

1. Of which: standardised approach (SA) 1,934,770 2,393,544 203,151

22

23 Operational risk 7,815,960 7,159,154 820,676

24

25

26 Total (1+6+10+11+12+13+14+15+16+20+23) 71,814,082 68,594,606 7,540,479

The increase in Credit Risk Weighted Assets is a result of an increase in overall Balance Sheet size and change in mix as well as reassessment of Operational Risk Weighted Assets which have been partially offset by a reduction in Market Risk Weighted Assets primarily due to reduction in the residual tenor of interest rate sensitive contracts in trading book.

Risk Weighted Assets for Counterparty Credit Risk and Credit Valuation Adjustment have increased due to an increase in notional amounts of Derivatives.

1. ‌Composition of capital

   ‌Tab CC1

   Capital ratios have improved against 31stDecember 2024 primarily due to the inclusion of current year profits in Common Equity Tier 1 balance.

   a		b
   		Source based on reference
   Amounts in AED'000 numbers/letters of the balance sheet
   			under the regulatory scope of
   			consolidation
   Common Equity Tier 1 capital: instruments and reserves
   Directly issued qualifying common share (and equivalent for non-joint stock companies) capital plus related stock
   1 surplus	2,011,495		CC2 (c)
   			CC2 (e) + Prudential Filter (transitional
   2 Retained earnings	5,825,338		arrangement)
   			CC2 (d) + CC2 (f) + CCR (g) + CCR (h) + CCR
   			(i) + CCR (j) - Regulatory haircut on
   			unrealized gains of Available For Sale
   3 Accumulated other comprehensive income (and other reserves)	4,317,524		securities
   4 Directly issued capital subject to phase-out from CET1 (only applicable to non-joint stock companies)	-
   5 Common share capital issued by third parties (amount allowed in group CET1)	-
   6 Common Equity Tier 1 capital before regulatory deductions	12,154,357
   Common Equity Tier 1 capital regulatory adjustments
   7 Prudent valuation adjustments	-
   			CC2 (a) as per published financial
   8 Goodwill (net of related tax liability)	(166,386)		statements
   9 Other intangibles including mortgage servicing rights (net of related tax liability)	(225,559)		CC2 (b)
   Deferred tax assets that rely on future profitability, excluding those arising from temporary differences (net of
   10 related tax liability)	-
   11 Cash flow hedge reserve	5,342		CC2 (j)
   12 Securitisation gain on sale	-
   13 Gains and losses due to changes in own credit risk on fair valued liabilities	-
   14 Defined benefit pension fund net assets	-
   15 Investments in own shares (if not already subtracted from paid-in capital on reported balance sheet)	-
   16 Reciprocal cross-holdings in CET1, AT1, Tier 2	-
   Investments in the capital of banking, financial and insurance entities that are outside the scope of regulatory
   consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10%
   17 threshold)	-
   Significant investments in the common stock of banking, financial and insurance entities that are outside the scope
   18 of regulatory consolidation (amount above 10% threshold)	-
   19 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability)	-
   20 Amount exceeding 15% threshold	-
   21 Of which: significant investments in the common stock of financials	-
   22 Of which: deferred tax assets arising from temporary differences	-
   23 CBUAE specific regulatory adjustments	-
   24 Total regulatory adjustments to Common Equity Tier 1	(386,603)
   25 Common Equity Tier 1 capital (CET1)		11,767,754

   a b Source based on reference Amounts in AED'000 numbers/letters of the balance sheet under the regulatory scope of consolidation
   Additional Tier 1 capital: instruments
   26 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus	-
   27 Of which: classified as equity under applicable accounting standards	-
   28 Of which: classified as liabilities under applicable accounting standards	-
   29 Directly issued capital instruments subject to phase-out from additional Tier 1	-
   Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by subsidiaries and held by third 30 parties (amount allowed in AT1)	-
   31 Of which: instruments issued by subsidiaries subject to phase-out	-
   32 Additional Tier 1 capital before regulatory adjustments	-
   Additional Tier 1 capital: regulatory adjustments
   33 Investments in own additional Tier 1 instruments	-
   Investments in capital of banking, financial and insurance entities that are outside the scope of regulatory 34 consolidation	-
   Significant investments in the common stock of banking, financial and insurance entities that are outside the scope 35 of regulatory consolidation	-
   36 CBUAE specific regulatory adjustments	-
   37 Total regulatory adjustments to additional Tier 1 capital	-
   38 Additional Tier 1 capital (AT1)	-
   39 Tier 1 capital (T1= CET1 + AT1)	11,767,754
   Tier 2 capital: instruments and provisions
   40 Directly issued qualifying Tier 2 instruments plus related stock surplus	918,250
   41 Directly issued capital instruments subject to phase-out from Tier 2	-
   Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 30) issued by subsidiaries and held by 42 third parties (amount allowed in group Tier 2)	-
   43 Of which: instruments issued by subsidiaries subject to phase-out	-
   44 Provisions	775,792 Capped at 1.25% of Credit RWA
   45 Tier 2 capital before regulatory adjustments	1,694,042
   Tier 2 capital: regulatory adjustments
   Investments in capital, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued common share capital of the entity (amount above 10%	- -
   Significant investments in the capital, financial and insurance entities that are outside the scope of regulatory 48 consolidation (net of eligible short positions)	-
   49 CBUAE specific regulatory adjustments	-
   50 Total regulatory adjustments to Tier 2 capital	-
   51 Tier 2 capital (T2)	1,694,042
   52 Total regulatory capital (TC = T1 + T2)	13,461,796
   53 Total risk-weighted assets	71,814,082

   1. Investments in own Tier 2 instruments

   2. threshold)

   a

   Amounts in AED'000

   b

   Source based on reference numbers/letters of the balance sheet under the regulatory scope of consolidation

   Capital ratios and buffers

   54 Common Equity Tier 1 (as a percentage of risk-weighted assets) 16.4%

   55	Tier 1 (as a percentage of risk-weighted assets)	16.4%
   56 57	Total capital (as a percentage of risk-weighted assets) Institution specific buffer requirement (capital conservation buffer plus countercyclical buffer requirements plus higher loss absorbency requirement, expressed as a percentage of risk-weighted assets)	18.7% 2.5%
   58	Of which: capital conservation buffer requirement	2.5%
   59	Of which: bank-specific countercyclical buffer requirement	0.0%
   60 61	Of which: higher loss absorbency requirement (e.g. DSIB) Common Equity Tier 1 (as a percentage of risk-weighted assets) available after meeting the bank's minimum capital requirement.	0.0% 7.9%
   	The CBUAE Minimum Capital Requirement
   62	Common Equity Tier 1 minimum ratio	7.0%
   63	Tier 1 minimum ratio	8.5%
   64	Total capital minimum ratio	10.5%
   	Amounts below the thresholds for deduction (before risk weighting)
   65
   66	Significant investments in common stock of financial entities	150,858
   67
   68	Deferred tax assets arising from temporary differences (net of related tax liability)	-
   	Applicable caps on the inclusion of provisions in Tier 2
   69	Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised approach (prior to application of cap)	930,950
   70	Cap on inclusion of provisions in Tier 2 under standardised approach	775,792
   71
   72
   	Capital instruments subject to phase-out arrangements (only applicable between 1 Jan 2018 and 1 Jan 2022)
   73	Current cap on CET1 instruments subject to phase-out arrangements
   74	Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities)
   75	Current cap on AT1 instruments subject to phase-out arrangements
   76	Amount excluded from AT1 due to cap (excess after redemptions and maturities)
   77	Current cap on T2 instruments subject to phase-out arrangements
   78	Amount excluded from T2 due to cap (excess after redemptions and maturities)

   ‌Tab CC2

   AED'000	a Balance sheet as in published financial statements 30 Jun 2025	b Under regulatory scope of consolidation 30 Jun 2025	c Reference
   Assets

   Cash and balances with UAE Central Bank	8,758,657	8,758,643
   Due from other banks, net	16,328,045	16,195,552
   Investment securities measured at fair value	9,705,112	9,465,513
   Investment securities measured at amortised cost	8,356,784	8,674,028
   Loans and advances, net	48,661,917	48,661,917
   Insurance contract assets and receivables, net	248,147	-
   Customer acceptances	326,995	326,995
   Other Assets	1,451,497	1,456,804
   Property and equipment	599,836	599,182
   Right-of-use assets	128,791	128,791
   Goodwill and intangible assets	395,015	225,559
   Of which: Goodwill	166,386	-	(a)
   Of which: Software	228,629	225,559	(b)
   Total assets	94,960,797	94,492,985
   Liabilities
   Due to other banks	10,110,996	10,110,996
   Deposits from customers	61,079,251	61,210,238
   Customer acceptances	326,995	326,995
   Debt securities issued and other long term borrowings	6,278,126	6,278,126
   Subordinated notes	915,446	915,446
   Insurance contract liabilities and payables	514,988	-
   Other liabilities	3,258,223	3,216,397
   Lease liabilities	118,249	118,249
   Deferred tax liability/(asset)	17,854	3,562
   Total liabilities	82,620,128	82,180,010
   Shareholders' equity
   Share capital	2,011,495	2,011,495	(c)
   Legal reserve	1,128,804	1,128,804	(d)
   Retained earnings	5,817,805	5,825,338	(e)
   Other reserves	3,345,484	3,347,339
   Of which: Voluntary Reserve	402,299	402,299	(f)
   Of which: General Banking Risk Reserve	1,000,000	1,000,000	(g)
   Of which: Credit Risk Reserve	1,742,000	1,742,000	(h)
   Of which: Fair Value Reserve	206,527	208,381	(i)
   Of which: Cash Flow Hedge Reserve	(5,342)	(5,342)	(j)
   Non-controlling interests	37,082	-
   Total shareholders' equity	12,340,669	12,312,975

   Due from other banks increased compared to 31stDecember 2024 as a result of higher placements with other banks, syndicated loans and reverse repurchase agreements. On the other hand, Due to other banks increased compared to 31stDecember 2024 as a result of higher borrowings under repurchase agreements.

   ‌Tab CCA

   a

   Quantitative / qualitative information

   b

   Quantitative / qualitative information

   1. Issuer The National Bank of Ras Al Khaimah (P.J.S.C) The National Bank of Ras Al Khaimah (P.J.S.C)

   2. Unique identifier (eg CUSIP, ISIN or Bloomberg identifier for private placement)

      AEN000601015 XS2630917107

   3. Governing law(s) of the instrument CBUAE, SCA and all applicable laws & regulations English Law

      Regulatory treatment Common Equity Tier 1 Tier 2

   4. Transitional arrangement rules (i.e. grandfathering) N/A N/A

   5. Post-transitional arrangement rules (i.e. grandfathering) Common Equity Tier 1 Tier 2

   6. Eligible at solo/group/group and solo Solo & Group Solo & Group

   7. Instrument type (types to be specified by each jurisdiction) Ordinary Shares Subordinated Debt

   8. Amount recognised in regulatory capital (currency in millions, as o AED 2,011 AED 918

   9. Nominal amount of instrument (currency in millions) AED 2,011 USD 250

      9a Issue price N/A 100%

      9b Redemption price N/A At par for Optional Redemption, Tax and Capital Event

   10. Accounting classification Shareholders' Equity Long Term Liability

   11. Original date of issuance Various 10-Sep-24

   12. Perpetual or dated Perpetual Dated 10.25 NC 5

   13. Original maturity date No Maturity 10-Dec-34

   14. Issuer call subject to prior supervisory approval No Yes

   15. Optional call date, contingent call dates and redemption amount N/A 10-Sep-29, Tax Event or Capital Event; At par

   16. Subsequent call dates, if applicable N/A Every day from 10-Sep-29 to (and including) 10-Dec-29 and each interest payment date thereafter

       Coupons / dividends Dividends Coupons

   17. Fixed or floating dividend/coupon Floating Fixed

   18. Coupon rate and any related index N/A 5.8732%

   19. Existence of a dividend stopper No No

   20a Fully discrectionary, partially discrectionary or mandatory (in ter Fully Discretionary Mandatory

   20b Fully discrectionary, partially discrectionary or mandatory (in ter Fully Discretionary Mandatory

   1. Existence of step-up or other incentive to redeem No No

   2. Non-cumulative or cumulative Non-cumulative N/A

   3. Convertible or non-convertible Non-convertible Non-convertible

   4. Writedown feature No Yes

      If the UAE Central Bank (as the Regulator) notifies the Issuer that it

   5. If writedown, writedown trigger(s) N/A

      is, or will become, non-viable (as defined in the T&C) without: (i) a Write-down; or (ii) a public sector injection of capital or

      equivalent support

   6. If writedown, full or partial N/A Full or Partial (Both options available)

   7. If writedown, permanent or temporary N/A Permanent

   8. If temporary write-own, description of writeup mechanism N/A N/A

      28a Type of subordination N/A Contractual

      Prior to liquidation, Tier 2 Capital Securities would rank senior to

   9. Position in subordination hierarchy in liquidation (specify instrum N/A

      the Common Equity Shares and junior to all unsubordinated payment obligations

   10. Non-compliant transitioned features No No

   11. If yes, specify non-compliant features N/A N/A

2. ‌Leverage ratio

   ‌Tab LR1

   a

   30 Jun 2025 AED'000

b

31 Mar 2025

a

30 Jun 2025

Amounts in AED'000

1 On-balance sheet exposures (excluding derivatives and securities financing transactions (SFTs), but including collateral) 97,090,516 93,106,350 Gross-up for derivatives collateral provided where deducted from balance sheet assets pursuant to the operative

Derivative exposures have increased on account of higher notional amounts of derivatives, primarily on account of higher volumes of Foreign Exchange contracts.

1. ‌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	8,758,643
   1.2 UAE Federal Government Bonds and Sukuks	2,660,477
   Sub Total (1.1 to 1.2)	11,419,120	11,419,120
   1.3 UAE local governments publicly traded debt securities	656,744
   1.4 UAE Public sector publicly traded debt securities	-

   Sub total (1.3 to 1.4)		656,744	656,744
   1.5	Foreign Sovereign debt instruments or instruments issued by	162,711	162,711
   their respective central banks
   1.6 Total		12,238,575	12,238,575
   2 Total liabilities			80,709,662
   3 Eligible Liquid Assets Ratio (ELAR)			15.2%
   ‌Tab ASRR
   Items Amounts in AED'000
   1		Computation of Advances
   	1.1	Net Lending (gross loans - specific and collective provisions + interest in suspense)	45,764,008
   	1.2	Lending to non-banking financial institutions	3,885,135
   	1.3	Net Financial Guarantees & Stand-by LC (issued - received)	1,024,446
   	1.4	Interbank Placements	11,199,669
   		Total Advances	61,873,258
   2		Calculation of Net Stable Ressources
   	2.1	Total capital + general provisions	15,242,009
   		Deduct:
   	2.1.1	Goodwill and other intangible assets	225,559
   	2.1.2	Fixed Assets	599,182
   	2.1.3	Funds allocated to branches abroad	-
   	2.1.5	Unquoted Investments	50,352
   	2.1.6	Investment in subsidiaries, associates and affiliates	351,544
   		Total deduction	1,226,637
   		Net Free Capital Funds	14,015,372
   		Other stable resources:
   	2.3.1	Funds from the head office	-
   	2.3.2	Interbank deposits with remaining life of more than 6 months	7,131,968
   	2.3.3	Refinancing of Housing Loans	-
   	2.3.4	Borrowing from non-Banking Financial Institutions	1,314,990
   	2.3.5	Customer Deposits	52,033,950
   	2.3.6	Capital market funding/ term borrowings maturing after 6 months from reporting date	2,202,536
   		Total other stable resources	62,683,444
   		Total Stable Resources (2.2+2.3.7)	76,698,816
   3		Advances TO STABLE RESOURCES RATIO (1.6/ 2.4*100)	80.7%

2. ‌Credit risk

   ‌Tab CR1

   Group defines a non-retail, retail and investment instrument as in default, which is largely aligned with the definition of credit-impaired, when it meets one or more of the following criteria:

   Quantitative criteria

   The borrower is 90 (or more) days past due on its contractual payments.

   Qualitative criteria:

   The bank classifies the loans as Non-Performing Asset (NPA) when:

   • Such loans, which may lead to incurring of some loss due to adverse factors (financial, economic, legal, political or managerial) which may hinder repayment, or due to weakening of security.

   • Loans whose full recovery seems doubtful on the basis of information available, leading, generally, to a loss of part of these loans (when the financial position of the customer and securities are not sufficient).

   • Loans where bank has exhausted all courses of action available but failed to recover anything, or where there is a possibility that nothing shall be recovered.

   a b c d e f Gross carrying values of Of which ECL accounting provisions for credit Allowances/ losses on SA exposures Net values (a+b-c) Defaulted Non-defaulted Impairments Allocated in regulatory Allocated in regulatory
   	exposures	exposures		category of Specific	category of General
   1 Loans	1,072,284	50,194,255	(2,604,624)	(754,673)	(1,849,951)	48,661,916
   2 Debt securities	67,394	17,008,881	(109,785)	(50,755)	(59,030)	16,966,490
   3 Off-balance sheet exposures	12,020	10,184,045	(44,426)	(2,495)	(41,931)	10,151,639
   4 Total	1,151,698	77,387,182	(2,758,835)	(807,923)	(1,950,912)	75,780,045

   Specific provision includes the Expected Credit Loss (ECL) on Stage 3 exposures within each category while General provision includes the ECL on Stage 1 and Stage 2 exposures.

   ‌Tab CR2

   a

   AED'000

‌Tab CR4

a

b

c

d

e

f

Exposures before CCF and CRM

Exposures post-CCF and CRM

RWA and RWA density

Asset classes

On-balance sheet

amount

Off-balance sheet

amount

On-balance sheet

amount

Off-balance sheet

amount

RWA

RWA density

Movements arise on account of the changing mix of Bank's exposures in Government Related Entities and Regulatory Retail Portfolios, as well as other components of Balance Sheet.

‌Tab CR5

Movements arise on account of the changing mix of exposures in Banks and Corporates, as well as other components of Balance Sheet.

1. ‌Counterparty credit risk

   ‌Tab CCR1

   1 SA-CCR (for derivatives)

   2

   3 Simple Approach for credit risk mitigation (for SFTs)

   248,730

   671,743

   -

   1.4

   -

   1,288,663

   -

   -

   568,838

   -

   -

   4 Comprehensive Approach for credit risk mitigation (for SFTs)

   5

   6 Total

   -

   -

   -

   -

   568,838

   RWA

   EAD post-CRM

   EEPE

   Potential future

   exposure

   Replacement cost

   f

   e

   d

   Alpha used for computing regulatory EAD

   c

   b

   a

   
   
   

   ‌Tab CCR2

   AED'000

   a

   EAD post-CRM

   b

   RWA

   1. All portfolios subject to the Standardised CVA capital charge* 1,894,078 456,957

   2. All portfolios subject to the Simple alternative CVA capital charge - -

      ‌Tab CCR3
      		a	b	c	d	e	f	g	h
      	Risk weight	0%	20%	50%	75%	100%	150%	Others	Total credit exposure
      Regulatory portfolio
      Sovereigns		141,934	-	-	-	-	-	-	141,934
      Public Sector Entities (PSEs)		-	-	-	-	-	-	2,161	2,161
      Multilateral development banks (MDBs)		-	-	8,292	-	-	-	-	8,292
      Banks		-	90,377	756,551	-	43,143	31,137	-	921,209
      Securities firms		-	31,408	10,690	-	-	-	-	42,098
      Corporates		-	-	-	-	-	-	172,969	172,969
      Regulatory retail portfolios		-	-	-	-	-	-	-	-
      Secured by residential property		-	-	-	-	-	-	-	-
      Secured by commercial real estate		-	-	-	-	-	-	-	-
      Equity Investment in Funds (EIF)		-	-	-	-	-	-	-	-
      Past-due loans		-	-	-	-	-	-	-	-
      Higher-risk categories		-	-	-	-	-	-	-	-
      Other assets		-	-	-	-	-	-	-	-
      Total		141,934	121,786	775,533	-	43,143	31,137	175,130	1,288,663

      a b c d e f Collateral used in derivative transactions Collateral used in SFTs Fair value of collateral received Fair value of posted collateral
      	Segregated	Unsegregated	Segregated	Unsegregated	Fair value of collateral received	Fair value of posted collateral
      Cash - domestic currency	-	-		- -	-	-
      Cash - other currencies	-	223,009		- 125,452	73,778	-
      Domestic sovereign debt	-	-		- -	-	-
      Government agency debt	-	-		- -	-	-
      Corporate bonds	-	-		- -	-	-
      Equity securities	-	-		- -	-	-
      Other collateral	-	-		- -	-	-
      Total	-	223,009		- 125,452	73,778	-

      ‌Movements arise on account of the changing mix of derivative exposures with other Banks, as well as other counterparty types. Tab CCR5

      The collaterals placed and received for the OTC derivatives are in line with the Mark to Market movements on account of such trades while collateral received for SFT transactions have increased due to higher volumes of SFT transactions.

      Classification: RAKBANK-Public

      ‌Tab CCR6

      AED'000

      a

      EAD (post-CRM)

      b

      RWA

      1 Exposures to QCCPs (total) 4,511

      
      
      

      ‌The Bank does not have any outstanding Credit Default Swaps (CDS), bought or sold as of 30thJune 2025 Tab CCR8

      Exposures for trades at QCCPs (excluding initial margin and

      1. default fund contribution); of which: 24,898 996

      2. (i) OTC derivatives 24,354 974

      3. (ii) Exchange-traded derivatives 544 22

      4. (iii) Securities financing transactions - -

      5. (iv) Netting sets where cross-product netting has been approved - -

      6. Segregated initial margin -

         
         
         

      7. Non-segregated initial margin 87,878 3,515

      8. Pre-funded default fund contributions - -

         
         
         

      9. Unfunded default fund contributions - -

      10. Exposures to non-QCCPs (total -

      11. Exposures for trades at non-QCCPs (excluding initial margin - -

          and default fund contribution); of which:

      12. (i) OTC derivatives - -

      13. (ii) Exchange-traded derivatives - -

      14. (iii) Securities financing transactions - -

      15. (iv) Netting sets where cross-product netting has been approved - -

      16. Segregated initial margin -

          
          
          

      17. Non-segregated initial margin 11 -

      18. Pre-funded default fund contributions - -

      19. Unfunded default fund contributions - -

      Classification: RAKBANK-Public

2. ‌Market risk

‌Tab MR1

1. General Interest rate risk (General and Specific) 909,228

2. Equity risk (General and Specific) 548,698

3. Foreign exchange risk 466,483

   5,972

1. Commodity risk 4,389

   Options

2. Simplified approach 5,972

3. Delta-plus method -

7

1. Securitisation -

2. Total 1,934,770

   The decrease in Market Risk Weighted Assets against 31stDecember 2024 is on account of the following -

   • Reduction in Foreign Exchange Risk, which is in turn due to a drop in net open position of certain foreign currencies

   • Partially offset by an increase in Interest Rate Risk and Equity Risk, which is in turn due to an increase in position of trading equities

20