For the period ended 30 September 2025
The National Bank of Ras Al-Khaimah (P.S.C.)
Introduction 3
Overview of risk management, key prudential metrics and RWA 4
Tab KM1 4
Tab OV1 5
Leverage ratio 6
Tab LR1 6
Tab LR2 7
Liquidity 8
Tab ELAR 8
Tab ASRR 8
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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.
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Overview of risk management, key prudential metrics and RWA
Tab KM1
Amounts in AED'00
a
b
c
d
e
30 Sep'25
30 Jun'25
31 Mar'25
31 Dec'24
30 Sep'24
Available capital (amounts)
1
Common Equity Tier 1 (CET1)
12,490,128
11,767,754
11,092,115
10,586,339
11,274,416
1a
Fully loaded ECL accounting model
12,490,128
11,767,754
11,092,115
10,342,078
11,043,536
2
Tier 1
13,561,249
11,767,754
11,092,115
10,586,339
11,274,416
2a
Fully loaded ECL accounting model Tier 1
13,561,249
11,767,754
11,092,115
10,342,078
11,043,536
3
Total capital
15,300,112
13,461,796
12,748,389
12,220,761
12,900,099
3a
Fully loaded ECL accounting model total capital
15,300,112
13,461,796
12,748,389
11,973,447
12,666,333
Risk-weighted assets (amounts)
4
Total risk-weighted assets (RWA)
78,041,945
71,814,082
68,594,606
67,530,692
65,803,921
Risk-based capital ratios as a percentage of RWA
5
Common Equity Tier 1 ratio (%)
16.0%
16.4%
16.2%
15.7%
17.1%
5a
Fully loaded ECL accounting model CET1 (%)
16.0%
16.4%
16.2%
15.4%
16.8%
6
Tier 1 ratio (%)
17.4%
16.4%
16.2%
15.7%
17.1%
6a
Fully loaded ECL accounting model Tier 1 ratio (%)
17.4%
16.4%
16.2%
15.4%
16.8%
7
Total capital ratio (%)
19.6%
18.7%
18.6%
18.1%
19.6%
7a
Fully loaded ECL accounting model total capital ratio (%)
19.6%
18.7%
18.6%
17.8%
19.3%
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 (%)
8.9%
7.9%
7.7%
7.2%
8.6%
Leverage Ratio
13
Total leverage ratio measure
109,401,847
105,082,136
99,913,407
96,120,986
91,871,665
14
Leverage ratio (%)
12.4%
11.2%
11.1%
11.0%
12.3%
14a
Fully loaded ECL accounting model leverage ratio (%)
12.4%
11.2%
11.1%
10.8%
12.0%
14b
Leverage ratio (%) (excluding the impact of any
applicable temporary exemption of central bank reserves)
12.4%
11.2%
11.1%
11.0%
12.3%
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
13,196,956
12,238,575
13,212,005
12,246,531
10,567,929
22
Total liabilities
83,607,090
80,709,662
77,486,945
74,733,107
70,544,936
23
Eligible Liquid Assets Ratio (ELAR) (%)
15.8%
15.2%
17.1%
16.4%
15%
ASRR
24
Total available stable funding
82,431,371
76,698,816
74,852,237
72,271,932
69,515,321
25
Total Advances
63,329,370
61,873,258
57,159,079
57,976,262
55,892,731
26
Advances to Stable Resources Ratio (%)
76.8%
80.7%
76.4%
80.2%
80.4%
Capital ratios and Leverage Ratio have slightly improved due to the inclusion of Quarter 3 profits in Common Equity Tier 1 Capital as well as the issuance of Additional Tier 1 notes during the same quarter.
ASRR improved mainly due to:
Increase in eligible customer/NBFI deposits
Increase in Shareholder's funds (explained above)
Offset by, increase in customer advances and a decrease in eligible interbank borrowings
Tab OV1
AED'000
a
b
c
RWA
Minimum capital
requirements
30 Sep 2025 30 Jun 2025 30 Sep 2025
1 Credit risk (excluding counterparty credit risk) 64,423,969 61,037,557 6,764,517
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) 64,423,969 61,037,557 6,764,517
3
4
5
6 Counterparty credit risk (CCR) 809,275 568,838 84,974
Of which: Internal Model Method (IMM) Of which: other CCR
7 Of which: standardised approach for counterparty credit risk 809,275 568,838 84,974
8
9
Equity positions under the simple risk weight approach
10 Credit valuation adjustment (CVA) 415,778 456,957 43,657
11
Equity investments in funds - look-through approach - - -
Equity investments in funds - mandate-based approach - - -
Equity investments in funds - fall-back approach - - -
Settlement risk - - -
Of which: securitisation internal ratings-based approach (SEC-IRBA)
Securitisation exposures in the banking book - - -
17
Of which: securitisation external ratings-based approach (SEC-ERBA) - - -
Of which: securitisation standardised approach (SEC-SA) - - -
Market risk 4,204,334 1,934,770 441,455
Of which: internal models approach (IMA)
Of which: standardised approach (SA) 4,204,334 1,934,770 441,455
22
Amounts below thresholds for deduction (subject to 250% risk weight) Floor adjustment
23 Operational risk 8,188,590 7,815,960 859,802
24
25
26 Total (1+6+10+11+12+13+14+15+16+20+23) 78,041,945 71,814,082 8,194,404
The increase in Market Risk Weighted Assets is due to higher notional amounts of interest rate sensitive derivatives as well as an increase in net open position of foreign currencies.
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Leverage ratio
Tab LR1
a
30 Sep 2025 AED'000
Total consolidated assets as per published financial statements 99,458,736 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 recognition of risk transference -
Adjustments for temporary exemption of central bank reserves (if applicable) -Adjustment for fiduciary assets recognised on the balance sheet pursuant to the operative accounting framework but
excluded from the leverage ratio exposure measure (578,797)
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 1,537,941
Adjustment for securities financing transactions (ie repos and similar secured lending) 575,284
Adjustments for off-balance sheet items (ie conversion to credit equivalent amounts of off-balance sheet exposures) 6,389,624
Adjustments for prudent valuation adjustments and specific and general provisions which have reduced Tier 1 capital -
Other adjustments 1,701,813
- Leverage ratio exposure measure 109,401,845
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 | 30 Sep 2025 | 30 Jun 2025 | |
On-balance sheet exposures | |||
| 101,315,187 210,038 | 97,090,516 125,452 | |
3 (Deductions of receivable assets for cash variation margin provided in derivatives transactions) | (341,065) | (223,009) | |
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) | (416,191) | (391,945) | |
7 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of rows 1 to 6) | 100,767,969 | 96,601,014 | |
Derivative exposures | |||
Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or 8 with bilateral netting) | 470,669 | 348,222 | |
9 Add-on amounts for PFE associated with all derivatives transactions | 1,198,299 | 940,440 | |
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 (sum of rows 8 to 12) | 1,668,968 | 1,288,662 | |
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 | 575,284 | 718,191 | |
17 Agent transaction exposures | - | - | |
18 Total securities financing transaction exposures (sum of rows 14 to 17) | 575,284 | 718,191 | |
Other off-balance sheet exposures | |||
19 Off-balance sheet exposure at gross notional amount | 18,921,543 | 19,656,720 | |
20 (Adjustments for conversion to credit equivalent amounts) | (12,531,919) | (13,182,451) | |
21 (Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital) | - | - | |
22 Off-balance sheet items (sum of rows 19 to 21) | 6,389,624 | 6,474,269 | |
Capital and total exposures | |||
23 Tier 1 capital | 13,561,249 | 11,767,754 | |
24 Total exposures (sum of rows 7, 13, 18 and 22) | 109,401,845 | 105,082,136 | |
Leverage ratio | |||
25 | Leverage ratio (including the impact of any applicable temporary exemption of central bank reserves) | 12.4% | 11.2% |
25a | Leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves) | 12.4% | 11.2% |
26 | CBUAE minimum leverage ratio requirement | 3.0% | 3.0% |
27 | Applicable leverage buffers | 0.0% | 0.0% |
Leverage Ratio has slightly improved due to the inclusion of Quarter 3 profits in Common Equity Tier 1 Capital as well as the issuance of Additional Tier 1 notes during the same quarter.
- 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 | 9,802,302 | |
1.2 UAE Federal Government Bonds and Sukuks | 2,711,095 | |
Sub Total (1.1 to 1.2) | 12,513,397 | 12,513,397 |
1.3 UAE local governments publicly traded debt securities | 646,436 | |
1.4 UAE Public sector publicly traded debt securities | - |
Sub total (1.3 to 1.4) | 646,436 | 646,436 | |
1.5 | Foreign Sovereign debt instruments or instruments issued by | 37,123 | 37,123 |
their respective central banks | |||
1.6 Total | 13,196,956 | 13,196,956 | |
2 Total liabilities | 83,607,090 | ||
3 Eligible Liquid Assets Ratio (ELAR) | 15.8% | ||
Tab ASRR | |||
Items Amounts in AED'000 | |||
1 | Computation of Advances | ||
1.1 | Net Lending (gross loans - specific and collective provisions + interest in suspense) | 48,049,099 | |
1.2 | Lending to non-banking financial institutions | 3,909,469 | |
1.3 | Net Financial Guarantees & Stand-by LC (issued - received) | 1,043,133 | |
1.4 | Interbank Placements | 10,327,669 | |
Total Advances | 63,329,370 | ||
2 | Calculation of Net Stable Ressources | ||
2.1 | Total capital + general provisions | 17,015,266 | |
Deduct: | |||
2.1.1 | Goodwill and other intangible assets | 249,805 | |
2.1.2 | Fixed Assets | 610,344 | |
2.1.3 | Funds allocated to branches abroad | - | |
2.1.5 | Unquoted Investments | 52,616 | |
2.1.6 | Investment in subsidiaries, associates and affiliates | 351,144 | |
Total deduction | 1,263,909 | ||
Net Free Capital Funds | 15,751,357 | ||
Other stable resources: | |||
2.3.1 | Funds from the head office | - | |
2.3.2 | Interbank deposits with remaining life of more than 6 months | 5,740,033 | |
2.3.3 | Refinancing of Housing Loans | - | |
2.3.4 | Borrowing from non-Banking Financial Institutions | 3,645,655 | |
2.3.5 | Customer Deposits | 55,088,546 | |
2.3.6 | Capital market funding/ term borrowings maturing after 6 months from reporting date | 2,205,780 | |
Total other stable resources | 66,680,014 | ||
Total Stable Resources (2.2+2.3.7) | 82,431,371 | ||
3 | Advances TO STABLE RESOURCES RATIO (1.6/ 2.4*100) | 76.8% | |