Q3 Results (rakbank cfs 2025 q3 english)

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

Deloitte & Touche (M E) Building 2, Level 3

Emaar Square Downtown Dubai PO Box 4254

Dubai

United Arab Emirates

Tel: +971(O)4376 8888

Fax:+971 (0) 4376 8899

www deloitte com

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

Introduction

We have reviewed the accompanying Group condensed consolidated interim statement of financial position of The National Bank of Ras AI-Khaimah (P. S.C.) (the "Bank") and its Subsidiaries (together referred to as the "Group") as at 30 September 2025 and the related Group statements of profit or loss, comprehensive income, changes in equity and cash flows for the nine-month period then ended and a summary of material accounting policy information and other explanatory notes. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard 34 Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.

Other matter

The consolidated financial statements of the Group for the year ended 31 December 2024 were audited by another auditor who expressed an unmodified opinion on those statements on 23 January 2025. The interim financial information of the Group for the nine-month period ended 30 September 2024 was reviewed by another auditor who expressed an unmodified conclusion on 21 October 2024.

Musa Ramahi Registration No. 872

23 October 2025 Dubai

United Arab Emirates

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

Condensed consolidated interim statement of financial position as at 30 September 2025

"

This condensed consolidated interim financial information was duly approved and authorised by the Board of Directors on 23 October 2025 and signed on their behalf by:

Raheel Ahmed

Chief Executive Officer

Mohammad Jaffer Nini Chief Financial Officer

The accompanying notes form an integral part of these condensed consolidated interim financial information. (2)

ended 30 September

ended 30 September

Items that will not be reclassified subsequently to

Changes in fair value of financial assets measured

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

Nine months period ended

30 September

1. Incorporation and Principal Activities

   The National Bank of Ras Al-Khaimah (P.S.C.) (the "Bank") is a public shareholding company incorporated in the Emirate of Ras Al-Khaimah in the United Arab Emirates ("UAE"). The head office of the Bank is located at the National Bank of Ras Al-Khaimah building, Al Rifa area, Exit No. 129, Sheikh Mohammed Bin Zayed Road, Ras Al-Khaimah, UAE.

   The Bank is engaged in providing Retail, Commercial, Islamic banking and Treasury services through a network of nineteen branches in the UAE. The Bank is controlled by the Government of Ras Al-Khaimah by majority of voting rights.

   At 30 September 2025, The National Bank of Ras Al-Khaimah (P.S.C.) comprises the Bank and five subsidiaries (together referred to as the "Group"). The condensed consolidated interim financial information for the nine months period ended 30 September 2025 comprises the Bank and following direct subsidiaries:

   Subsidiary	Authorized and issued capital	Ownership interest	Incorporated	Principal Activities
   Ras Al Khaimah National Insurance Company PSC	AED 121.275 million	79.23%	UAE	Underwriting all types of Insurance business
   				Back-office support services to
   BOSS FZCO	AED 0.5 million	80.00%*	UAE	the Bank
   				Technological support services
   RAK Technologies FZCO	AED 0.5 million	80.00%*	UAE	to the Bank
   Protego Insurance Brokers L.L.C.	AED 28.5 million	100.00%	UAE	Insurance brokerage
   				Sales and support services to
   RAKAZA (Management Office)	AED 5.0 million	100.00%	UAE	the Bank

   *These represent legal ownership of the Bank. However, beneficial ownership is 100% as the remaining interest is held by a related party on trust and for the benefit of the Bank.

   As part of ongoing efforts to streamline operations and optimize business structure, the Group initiated voluntary liquidation of four subsidiaries RAK Technologies FZCO, RAK Funding Cayman Limited, RAK Global Markets Cayman Limited and RAK Financial Services Limited (RAKFS) in 2024. As of 30 September 2025, the license/certificate of RAK Funding Cayman Limited, RAK Global Markets Cayman Limited and RAKFS have been revoked. Liquidation formalities are in progress for RAK Technologies FZCO.

   Further, during the current period, the Group incorporated two new wholly owned subsidiaries viz. RAKAZA and RAKBANK Digital Assets LLC. RAKBANK Digital Assets LLC's principal activity is to issue payment tokens and the formalities with regards to capital infusion are in progress.

2. Application of new and revised IFRS Accounting Standards

   New and revised IFRS Accounting Standards applied with no material effect on the condensed consolidated financial information

   The following new and revised IFRS Accounting Standards, which became effective for annual periods beginning on or after 1 January 2025, have been adopted in condensed consolidated interim financial statements. Their adoption has not had any material impact on the disclosures or on the amounts reported in these condensed consolidated interim financial statements:

   New and revised IFRS Accounting Standard Summary

   Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates relating to Lack of Exchangeability

   The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.

3. Material accounting policy information

   1. Basis of preparation

      The condensed consolidated interim financial information of the Group is prepared under the historical cost basis except for certain financial instruments which are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

      These condensed consolidated interim financial information are prepared in accordance with International Accounting Standard 34: Interim Financial Reporting ("IAS 34"), issued by the International Accounting Standard Board ("IASB") and also comply with the applicable requirements of the laws in the U.A.E.

      The accounting policies used in the preparation of these condensed consolidated interim financial information are consistent with those used in the audited annual consolidated financial statements for the year ended 31 December 2024.

      As required by the Securities and Commodities Authority of the U.A.E. ("SCA") Notification No. 2624/2008 dated 12 October 2008, accounting policies relating to financial assets, cash and cash equivalents and Islamic financing and investing assets have been disclosed in the condensed consolidated interim financial information.

      These condensed consolidated interim financial information do not include all the information required for full annual consolidated financial statements and should be read in conjunction with the Group's audited annual consolidated financial statements as at and for the year ended 31 December 2024. In addition, results for the nine months period ended 30 September 2025 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2025.

   2. Consolidation

      The condensed consolidated interim financial information incorporate the condensed consolidated interim financial information of National Bank of Ras Al-Khaimah (P.S.C.) and its subsidiaries (collectively referred to as "Group").

      1. Subsidiaries

         Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.

      2. Transactions eliminated on consolidation

         Intra-group balances and income and expenses (except for foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated in preparing the condensed consolidated interim financial information. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

      3. Acquisition accounting

The acquisition method of accounting is used to account for the acquisition of subsidiaries. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest, and the Group allocates the purchase price to these net assets acquired. The measurement period for purchase price allocations ends as soon as information on the facts and circumstances becomes available but does not exceed 12 months. The Group policy is aligned with that laid out in IFRS 3.

3. Material accounting policy information (continued)

1. Consolidation (continued)

   iii) Acquisition accounting (continued)

   The consideration transferred for the acquiree is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred or assumed, but excludes acquisition related costs such as advisory, legal, valuation and similar professional services which are charged to the statement of profit or loss.

   The Group measures non-controlling interest that represents present ownership interest and entitles the holder to a proportionate share of net assets in the event of liquidation on a transaction by transaction basis.

   Goodwill is measured by deducting the net assets of the acquiree from the aggregate of the consideration transferred for the acquiree, the amount of non-controlling interest in the acquiree and fair value of an interest in the acquiree held immediately before the acquisition date.

2. Islamic financing

   The Group engages in Shari'ah compliant Islamic banking activities through various Islamic instruments such as Murabaha, Salam, Mudaraba, and Wakala. The accounting policy for initial recognition, subsequent measurement and derecognition of Islamic financial assets and liabilities are below:

   1. Murabaha financing

      A sale contract whereby the Group sells to a customer commodities and other assets at an agreed upon profit mark up on cost. The Group purchases the assets based on a promise received from customer to buy the item purchased according to specific terms and conditions. Profit from Murabaha is quantifiable at the commencement of the transaction. Such income is recognised as it accrues over the period of the contract on effective profit rate method on the balance outstanding.

   2. Salam

      Bai Al Salam is a Sale contract where the Customer (Seller) undertakes to deliver/supply a specified tangible asset to the Group (Buyer) at mutually agreed future date(s) in exchange for an advance price fully paid on the spot by the buyer.

      Revenue on Salam financing is recognised on the effective profit rate basis over the period of the contract, based on

      the Salam capital outstanding.

   3. Mudaraba

      A contract between the Group and a customer, whereby one party provides the funds (Rab Al Mal - customer) and the other party (the Mudarib - the Group) invests the funds in a project or a particular activity and any profits generated are distributed between the parties according to the profit shares that were pre-agreed in the contract. The Mudarib would bear the loss in case of default, negligence or violation of any of the terms and conditions of the Mudaraba, otherwise, losses are borne by the Rab Al Mal.

      3. Material accounting policy information (continued)

      1. Islamic financing (continued)

   4. Wakala

      An agreement between the Group and customer whereby one party (Rab Al Mal - principal) provides a certain sum of money to an agent (Wakil), who invests it according to specific conditions in return for a certain fee (a lump sum of money or a percentage of the amount invested). The agent is obliged to return the invested amount in case of default, negligence or violation of any of the terms and conditions of the Wakala. The Group may be Wakil or Rab Al Mal depending on the nature of the transaction.

      Estimated income from Wakala is recognised on an accrual basis over the period, adjusted by actual income when received. Losses are accounted for on the date of declaration by the agent.

   5. Ijara

      Ijara financing is a finance lease agreement whereby the Group (lessor) leases an asset based on the customer's (lessee) request and promise to lease the assets for a specific period in lieu of rental instalments. Ijara ends in transferring the ownership of the asset to the lessee at the end of the lease inclusive of the risks and rewards incident to an ownership of the leased assets. Ijara assets are stated at amounts equal to the net investment outstanding in the lease including the income earned thereon less impairment provisions.

   6. Profit distribution mechanism

Deposits of Islamic banking are managed in accordance with Shari'ah principles through a Mudaraba pool and profit is distributed in accordance with the Shari'ah approved profit distribution mechanism. To ensure the competitive return to the depositors, Shari'ah compliant reserves are maintained as followed;

• Profit Equalisation Reserves (PER) is appropriated out of the Common Mudaraba Pool's profit in order to

  maintain the adequate return on investments for participants of Common Mudaraba Pool.

• Investment Risk Reserve (IRR) is appropriated from the depositors' share of profits set aside as a reserve.

1. Cash and cash equivalents

   In the condensed consolidated interim statement of cash flows, cash and cash equivalents include cash on hand, money in current and call accounts and placements with original maturity of less than three months excluding the statutory deposit required to be maintained with the UAE Central Bank.

   4. Cash and balances with UAE Central Bank
   	30 September 2025		31 December 2024
   	AED'000		AED
   	(Un-audited)		(Audited)
   Cash in hand	993,441		895,228
   Balances with the UAE Central bank	8,808,879		7,875,084
   	9,802,320		8,770,312
   	===============		===============

   As per the CBUAE regulations, the Bank is allowed to draw their balances held in the UAE Central Bank reserve account, while ensuring that they meet the reserve requirements over 14 days period. Therefore, the balances have been classified as part of cash and cash equivalents (Note 28).

   5. Due from other banks, net
   	30 September 2025		31 December 2024
   	AED'000		AED
   	(Un-audited)		(Audited)
   Placements with other banks	1,767,949		955,505
   Demand deposits	1,287,982		1,127,681
   Banker's acceptances	7,296,335		6,076,344
   Syndicated loans	4,299,633		3,651,141
   Reverse repurchase agreements	1,491,902		-
   Trade loans	606,045		550,950
   Others	32,207		46,693
   Total due from other banks	16,782,053		12,408,314
   Provision for expected credit loss	(86,619)		(47,714)
   Due from other banks, net	16,695,434		12,360,600
   	===============		===============

   As at 30 September 2025, the Bank holds quoted debt securities with a fair value of AED 1,750 million (31 December 2024: Nil) as collateral under reverse repurchase agreements amounting to AED 1,492 million (31 December 2024: Nil). These securities have subsequently been pledged to secure repurchase borrowings of AED 1,595 million [Note 9].

   The below represents deposits and balances due from:
   	30 September 2025		31 December 2024
   	AED'000		AED
   	(Un-audited)		(Audited)
   Banks in UAE	687,835		361,023
   Banks outside UAE	16,094,218		12,047,291
   Total due from other banks	16,782,053		12,408,314
   	===============		===============
   6. Investment securities, net
   	30 September 2025		31 December 2024
   	AED'000		AED
   	(Un-audited)		(Audited)
   Securities at fair value through other comprehensive income (FVOCI)
   Quoted equity securities	609,829		483,497
   Unquoted equity securities	382		-
   Quoted debt securities*	8,162,779		7,861,347
   Unquoted debt securities	-		360,763
   	8,772,990		8,705,607
   	================		================

   6. Investment securities, net (continued)
   	30 September 2025		31 December 2024
   	AED'000		AED
   	(Un-audited)		(Audited)
   Securities at fair value through profit or loss (FVTPL)
   Quoted funds	113,225		92,958
   Unquoted funds	52,234		47,901
   Quoted equity securities	169,683		54,307
   Quoted debt securities	355,482		258,549
   	690,624		453,715
   	===============		===============
   Investment securities measured at fair value	9,463,614		9,159,322
   	===============		===============
   Securities held at amortised cost
   Quoted debt securities*	8,830,364		7,489,118
   	8,830,364		7,489,118
   Provision for expected credit loss for Securities held at amortised cost	(40,253)		(44,837)
   Investment securities measured at amortised cost	8,790,111		7,444,281
   	===============		================
   Investment securities, net	18,253,725		16,603,603
   	===============		===============

   *As at 30 September 2025, quoted debt securities with fair value of AED 3,298 million and carrying value of AED 3,264 million (31 December 2024: fair value of AED 3,089 million and carrying value of AED 3,086 million) have been given as collateral against repo borrowings of AED 2,797 million (31 December 2024: AED 2,646 million) [Note 9].

   As at 30 September 2025, the provision for credit loss on debt securities at FVOCI amounted to AED 67 million (31 December 2024: AED 68.0 million) [Note 35].

   6. Investment securities, net (continued)
   The composition of the investment portfolio by category is as follows:
   	30 September	31 December
   	2025	2024
   	AED'000	AED
   	(Un-audited)	(Audited)
   Federal and local Government - UAE	3,450,805	3,360,126
   Government related entity - UAE	1,300,337	957,828
   Government - GCC	755,349	828,242
   Government - Others	887,792	868,770
   Banks and financial institutions - UAE	1,704,125	1,534,221
   Banks and financial institutions - GCC	1,957,160	1,266,776
   Banks and financial institutions - Other	2,900,808	3,030,966
   Public limited companies - UAE	853,118	849,907
   Public limited companies - GCC	1,827,654	1,609,165
   Public limited companies - Others	1,711,477	1,663,776
   Total debt securities	17,348,625	15,969,777
   Quoted equity securities	779,512	537,804
   Unquoted equity securities	382	-
   Quoted funds	113,225	92,958
   Unquoted funds	52,234	47,901
   Total investment securities	18,293,978	16,648,440
   	==============	===============
   7. Loans and advances, net
   	30 September	31 December
   	2025 AED'000	2024 AED'000
   	(Un-audited)	(Audited)
   (a) Loans and advances Retail Banking	24,369,244	23,303,622
   Wholesale Banking	18,320,084	16,160,978
   Business Banking	11,173,119	10,609,394
   Total loans and advances [Note 7(b)]	53,862,447	50,073,994
   Provision for expected credit loss [Note 7(c)]	(2,634,279)	(2,850,054)
   Net loans and advances	51,228,168 ===============	47,223,940 ===============
   (b) Analysis of loans and advances
   Personal loans	5,917,030	5,595,253
   Mortgage loans	12,488,046	11,953,601
   Credit cards	2,763,259	2,554,683
   Auto loans	459,644	430,513
   RAK Business loans	4,122,607	4,057,184
   Other Business banking loans	7,050,512	6,552,210
   Wholesale banking loans	18,320,084	16,160,978
   Other Retail loans	2,741,265	2,769,572
   Total loans and advances	53,862,447	50,073,994
   	===============	===============

   7. Loans and advances, net (continued)
   	30 September		31 December
   	2025		2024
   	AED'000		AED'000
   	(Un-audited)		(Audited)
   (c) Movement in provision for expected credit loss
   Balance at the beginning of the period/year	2,850,054		2,514,887
   Impairment allowance for the period/year	343,172		904,440
   Written-off during the period/year	(558,947)		(569,273)
   Balance at the end of the period/year	2,634,279		2,850,054
   	==============		==============

   1. Net impairment charge on loans and advances - for the nine months period ended:

      	30 September		30 September
      	2025 AED'000		2024 AED'000
      	(Un-audited)		(Un-audited)
      Impairment allowance for the period	343,172		640,650
      Net recoveries during the period	(116,354)		(108,866)
      Net impairment charge for the period (Note 24)	226,818 ==============		531,784 ===============

      Net recovery mainly represents amounts subsequently recovered from fully written-off loans.

   2. Islamic financing assets:

   The below table summarises the Islamic financing assets that are part of loans and advances above:

   30 September 2025

   31 December

   2024

   i) Islamic financing assets

   AED'000 AED'000 (Un-audited) (Audited)

   Islamic retail financing assets	3,682,550		3,402,960
   Islamic business banking assets	2,621,433		2,479,573
   Islamic wholesale banking assets	868,987		586,007
   Total Islamic financing assets	7,172,970		6,468,540
   Provision for expected credit loss	(346,417)		(341,089)
   Net Islamic financing assets	6,826,553		6,127,451
   	==============		==============
   ii) Analysis of Islamic financing assets Islamic Business Banking Finance	2,621,433		2,479,573
   Islamic Salam Personal finance	2,514,710		2,201,306
   Islamic Ijara Property Finance	1,068,608		1,117,606
   Islamic Wholesale Banking	868,987		586,007
   Islamic Auto Murabaha	51,120		38,425
   Islamic Credit Cards	48,112		45,623
   Total Islamic financing assets	7,172,970 ===============		6,468,540 ===============

   8. Other assets
   	30 September		31 December
   	2025		2024
   	AED'000		AED'000
   	(Un-audited)		(Audited)
   Interest receivable	600,133		594,660
   Profit receivable on Islamic financing assets	106,465		95,327
   Prepayments	54,664		68,539
   Foreign exchange and other derivative contracts (Note 18)	578,797		502,670
   Gold in hand	5		-
   Islamic profit paid in advance	11,777		51,716
   Others	292,623		369,340
   	1,644,464		1,682,252
   	===============		===============
   9. Due to other banks
   	30 September		31 December
   	2025		2024
   	AED'000 (Un-audited)		AED'000 (Audited)
   Term borrowings	3,688,164		4,194,217
   Repurchase agreements (Note 6)	4,391,680		2,646,762
   Demand deposits	190,233		258,496
   	8,270,077 ==============		7,099,475 ===============
   As at 30 September 2025:

   • Quoted debt securities with fair value of AED 3,298 million and carrying value of AED 3,264 million (31 December 2024: fair value of AED 3,089 million and carrying value of AED 3,086 million) have been given as collateral against repo borrowings of AED 2,797 million (31 December 2024: AED 2,646 million) [Note 6].

   • Borrowed quoted debt securities with fair value of AED 1,750 million (31 December 2024: Nil) have been given as collateral against repo borrowings of AED 1,595 million (31 December 2024: Nil) [Note 5].

   • Repurchase agreements include borrowings from non-banking financial institutions.

   10. Deposits from customers
   	30 September		31 December
   	2025		2024
   	AED'000		AED'000
   	(Un-audited)		(Audited)
   Current accounts	38,540,483		32,952,421
   Time deposits	22,243,584		22,286,210
   Saving deposits	3,373,013		2,959,660
   Call deposits	1,464,218		1,451,387
   	65,621,298 ==============		59,649,678 ===============

   Deposits include AED 2,229 million (31 December 2024: AED 2,004 million) held by the Group as cash collateral for loans and advances granted to customers.

   1. Deposits from customers (continued)

      The below table summarises the Islamic deposits of customers that are part of deposits from customers above:

      	30 September		31 December
      	2025		2024
      	AED'000 (Un-audited)		AED'000 (Audited)
      Murabaha term deposit	2,491,696		3,439,143
      Qard-E-Hassan - current accounts	2,415,248		1,433,110
      Wakala deposits	823,915		554,072
      Mudaraba - current accounts	393,870		424,954
      Mudaraba - saving accounts	197,884		214,192
      Mudaraba - call deposits	13,250		8,075
      Mudaraba term investment deposits	6,628		4,492
      	6,342,491		6,078,038
      	=============		==============
      11. Debt securities issued and other long-term borrowings
      	30 September		31 December
      	2025		2024
      	AED'000 (Un-audited)		AED'000 (Audited)
      AED 370 million bilateral borrowing (a)	370,000		370,000
      USD 50 million bilateral borrowing (b)	183,650		183,650
      AED 370 million Islamic bilateral borrowing (c)	370,000		370,000
      USD 100 million bilateral borrowing (d)	367,300		367,300
      USD 100 million bilateral borrowing (e)	367,300		367,300
      AED 550 million bilateral borrowing (f)	550,000		550,000
      AED 550 million Islamic bilateral borrowing (g)	550,000		550,000
      USD 600 million medium term note issued at discount in July 2024 (h)	2,199,258		2,198,254
      USD 75 million Islamic bilateral borrowing (i)	275,475		-
      AED 500 million Islamic bilateral borrowing (j)	500,000		-
      USD 30 million bilateral borrowing (k)	110,190		-
      USD 120 million bilateral borrowing (l)	440,760		-
      Less: Debt securities and other borrowing issue costs	(14,791)		(12,398)
      Fair value adjustment on hedged medium-term note	13,460		(6,288)
      	6,282,602		4,937,818
      	=============		==============

      1. In June 2023 the Group borrowed AED 370 million at an interest rate of 6 months EIBOR + 0.90% per annum which matures in June 2026.

      2. In June 2023 the Group borrowed USD 50 million at an interest rate of daily SOFR + 1.10% per annum which matures in June 2026.

      3. In June 2023 the Group borrowed AED 370 million at a profit rate of 3 months EIBOR + 0.90% per annum which matures in June 2026.

      4. In July 2023 the Group borrowed USD 100 million at an interest rate of USD 3 month SOFR + 1% which matures in July 2026.

   2. Debt securities issued and other long-term borrowings (continued)

2. In September 2023 the Group borrowed USD 100 million at an interest rate of USD daily SOFR + 1% which matures in September 2026.

3. In February 2024 the Group borrowed AED 550 million at an interest rate of 3 months EIBOR + 0.75% per annum which matures in February 2027.

4. In March 2024 the Group borrowed AED 550 million at a profit rate of 3 months EIBOR + 0.75% per annum which matures in March 2027.

5. In July 2024, the Group issued five-year USD 600 million EMTN Bonds under the Groups Social Finance Framework. These were issued at a discounted rate of 99.723% and carries a fixed interest rate of 5.375% per annum. These notes mature in July 2029.

6. In January 2025 the Group borrowed USD 75 million at a profit rate of USD 3 months SOFR + 0.95% per annum which matures in January 2028.

7. In March 2025 the Group borrowed AED 500 million at a profit rate of 3 months EIBOR + 0.75% per annum which matures in March 2028.

8. In June 2025 the Group borrowed USD 30 million at an interest rate of 3 months SOFR + 0.90% per annum which matures in June 2029.

9. In June 2025 the Group borrowed USD 120 million at an interest rate of 3 months SOFR + 0.85% per annum which matures in June 2028.

1. Reinsurance contract assets and insurance contract liabilities

In September 2024, the Bank issued USD 250 million of Subordinated Tier 2 notes. The notes, were issued at a par with coupon rate of 5.8732% p.a. The notes are callable after 5 years and have a final maturity of 10.25 years. The notes will rank pari passu among themselves, rank subordinate and junior to all senior obligations and rank in priority only to all junior obligations.

1. Share capital

   At 30 September 2025, the authorised, issued and fully paid share capital of the Bank comprised 2,011 million shares of AED 1 each (31 December 2024: 2,011 million shares of AED 1 each).

   Cash dividend of 50% amounting to AED 1,005.7 million of the issued and paid-up capital for the year ended 31 December 2024 (2024: 31% amounting to AED 623.6 million) was paid after the shareholder's approval in the annual general meeting held on 18 March 2025.

2. Tier 1 capital notes

In July 2025, the Bank issued Additional Tier 1 (AT1) capital notes amounting to USD 300 million. The notes are perpetual, subordinated and unsecured and are issued at a fixed coupon rate of 6.625% p.a. Subject to interest cancellation clauses, interest is payable semi-annually at a fixed rate of 6.625% p.a. until July 9, 2031; and thereafter, the interest will reset every sixth year. The Bank can elect not to pay a coupon at its own discretion and has the option to call back the securities in 2031 subject to obtaining regulatory approvals. Note holders will not have a right to claim the coupon and such event will not be considered an event of default. The notes carry no maturity date and have been classified as equity. Accordingly, the interest paid is accounted for as a deduction from retained earnings.

The transaction costs associated with this issuance are incremental costs directly attributable to the AT1 transaction that otherwise would have been avoided therefore are also deducted from retained earnings.

The Group is holding AED 31.6 million (31 December 2024: AED 20.8 million) provision for expected credit loss on contingencies and commitments.

Commitments to extend credit shown above represent unfunded amounts out of approved limits offered to customers, which are irrevocable by the Group. Commitments to extend credit amounting to AED 8,820 million (31 December 2024: AED 11,097 million) are revocable at the option of the Group and not included in the above table.

1. Forward foreign exchange and other derivative contracts

   Foreign exchange contracts comprise commitments to purchase foreign and domestic currencies on behalf of

   customers and in respect of the Bank's undelivered spot transactions.

   Outstanding forward foreign exchange contracts, interest rate swaps and other derivative contracts at 30 September 2025 and 31 December 2024 are as follows:

   Fair Values

   	Assets		Liability		Notional
   	AED'000		AED'000		AED'000
   30 September 2025 Foreign exchange contracts	237,501		192,856		62,690,611
   Interest rate swaps	204,661		125,993		12,974,134
   Other derivative contracts	136,635		182,250		25,033,101
   	-------------------------- 578,797		-------------------------- 501,099		-------------------------- 100,697,846
   	=============		=============		=============
   31 December 2024
   Foreign exchange contracts	129,372		128,988		31,041,245
   Interest rate swaps	333,839		186,820		12,657,119
   Other derivative contracts	39,459		128,063		6,221,820
   	502,670		443,871		49,920,184
   	=============		=============		=============

2. Interest income and expense

   Three months period

   ended 30 September

   Nine months period

   ended 30 September

   	2025		2024		2025		2024
   	(un-audited) AED'000		(un-audited) AED'000		(un-audited) AED'000		(un-audited) AED'000
   Interest income
   Personal loans	65,319		67,624		191,016		199,975
   Mortgage loans	97,879		83,635		284,551		239,132
   Credit cards	80,663		80,274		234,641		244,789
   Auto loans	7,147		6,921		20,853		20,501
   RAK Business loans	128,781		134,413		391,905		393,640
   Wholesale banking loans	269,739		236,222		753,600		658,037
   Other Business banking loans	127,249		126,070		385,357		360,884
   Other retail banking loans	36,128		30,199		107,854		94,371
   Investment securities	179,209		171,826		537,198		482,259
   Deposits with the U.A.E. Central Bank	27,262		28,149		84,633		69,624
   Other banks	196,905		224,859		516,641		640,675
   	1,216,281 =============		1,190,192 =============		3,508,249 =============		3,403,887 =============
   Interest expense
   Due to customers	241,972		255,001		695,903		661,140
   Debt securities issued and other borrowings	31,208		22,290		94,232		47,580
   Borrowings from other banks	129,307		100,177		354,087		308,950
   Subordinated note	13,650		3,197		40,950		3,197
   	416,137		380,665		1,185,172		1,020,867
   	=============		=============		=============		=============

3. Income from Islamic financing and distribution to depositors

   Three months period

   ended 30 September

   Nine months period

   ended 30 September

   	2025 (un-audited)	2024 (un-audited)		2025 (un-audited)	2024 (un-audited)
   	AED'000	AED'000		AED'000	AED'000
   Income from Islamic financing Islamic Salam personal finance	49,839	36,983		139,471	106,413
   Islamic Auto Murabaha	869	729		2,450	2,320
   Islamic Business banking finance	82,255	68,441		240,341	210,113
   Islamic Wholesale banking finance	29,394	12,528		75,350	45,020
   Islamic Ijara property finance	12,931	14,573		38,994	43,950
   Islamic Investment income	33,565	26,255		93,425	73,313
   	208,853 =============	159,509 =============		590,031 =============	481,129 =============
   Distribution to depositors
   Distribution of profit on Islamic term investment deposits	38,471	52,933		128,058	162,588
   Bilateral long-term borrowings	19,189	14,237		57,276	37,293
   Distribution of profit on
   Islamic demand deposits	2,473	198		3,042	815
   	60,133	67,368		188,376	200,696
   	=============	=============		=============	=============

4. Net fees and commission income

1. General and administrative expenses

   Three months period

   ended 30 September

   Nine months period

   ended 30 September

   	2025 (un-audited) AED'000	2024 (un-audited) AED'000	2025 (un-audited) AED'000	2024 (un-audited) AED'000
   Staff costs	249,800	241,596	743,860	714,311
   Outsourced staff costs	28,319	9,844	82,595	24,842
   Occupancy costs	14,333	12,132	44,034	36,869
   Marketing expenses	10,046	10,676	30,445	28,765
   Depreciation and amortisation	33,320	30,623	91,588	92,928
   Communication costs	18,325	14,678	44,973	42,154
   Credit card expenses	2,462	13,530	31,666	46,680
   Information and technology
   expenses	39,439	39,745	138,157	121,603
   Others	52,940	31,106	132,412	84,588
   	--------------------------		--------------------------
   	448,984	403,930	1,339,730	1,192,740
   	=============	=============	=============	=============

2. Net impairment charge

   Nine months period

   ended 30 September

   	2025 (un-audited) AED'000		2024 (un-audited) AED'000
   Net impairment charge on loans and advances	226,818		531,784
   Net impairment charge on due from other banks	38,905		(11,822)
   Net impairment release on debt securities measured at FVOCI	(3,674)		(3,614)
   Net impairment release on debt securities measured at amortised cost	(4,584)		(7,704)
   Net impairment charge/(release) on other receivables and acceptances	2,624		(3,446)
   Net impairment charge/(release) on off balance sheet items	10,730		367
   Total net impairment charge	270,819		505,565
   	=============		=============

   Expected credit loss allowance

   A summary of the provision for credit loss and the net movement on financial instruments by category are as follows:

   	At 31 December		Other	At 30 September
   	2024	Change	movement	2025
   	AED'000	AED'000	AED'000	AED'000
   Due from other banks	47,714	38,905		86,619
   Loans and advances	2,850,054	343,172	(558,947)	2,634,279
   Debt investment securities - FVOCI Debt Investment securities - amortised	67,983	(3,674)	2,477	66,786
   cost	44,837	(4,584)	-	40,253
   Other receivables	47,585	3,095	(294)	50,386
   Customer acceptances	2,388	549	-	2,937
   Off balance sheet items	20,838	10,730	-	31,568
   	--------------------------	--------------------------	--------------------------	-------------------------
   Total	3,081,399 =============	388,193 =============	(556,764) =============	2,912,828 =============

3. Taxation

   On 9 December 2022, UAE Ministry of Finance (MoF) released Federal Decree Law No 47 of 2022 on the Taxation of Corporations and Businesses, Corporate Tax Law (CT Law) to enact a new CT regime in the UAE. The new CT regime has become effective for accounting periods beginning on or after 1 June 2023. As the Group's accounting year ends on 31 December the first tax period was the period from 1 January 2024 to 31 December 2024, with the respective tax return filed in September 2025.

   The taxable income of the entities that are in scope for UAE CT purposes are subject to the rate of 9% on taxable profits above AED 375,000.

   Below is an analysis of the group's income tax recognized during the period/year:

   Nine months period

   ended 30 September

   	2025	2024
   	(Un-audited)	(Un-audited)
   Current tax recognized in profit or loss for the period	AED'000	AED'000
   Current tax expense on profits for the period	203,491	164,627
   	=============	=============
   Current tax recognized in Other comprehensive income for the period Current tax expense/(income) for the period recognized on items that will
   not be reclassified subsequently to profit or loss	9,728	1,432
   	=============	=============

   25. Taxation (continued)
   	30 September	31 December
   	2025	2024
   	AED'000	AED'000
   Deferred income tax liability	(Un-audited)	(Audited)
   Deferred tax liability at the beginning of the period/year	8,921	13,733
   Increase/(decrease) during the period/year recognized in OCI on items

   that may be reclassified subsequently to profit or loss 16,479 (4,812)

   25,400 8,921

   ============= =============

   For determining the tax expense for the period the accounting profit has been adjusted for tax purposes. Adjustments for tax purpose include items relating to both income and expense. After giving effect to these adjustments the average effective tax rate is estimated to 8.91% (30 September 2024: 8.88%).

4. Earnings per share

   The basic earnings per share is calculated by dividing the net profit attributable to owners of the Parent by the weighted average number of ordinary shares in issue during the period:

   Three months period ended 30 September

   Nine months period ended 30 September

   2025 2024 2025 2024

   (Un-audited) (Un-audited) (Un-audited) (Un-audited)

   AED'000 AED'000 AED'000 AED'000

   Profit for the period

   (attributed to owners of the Bank) 705,312 597,803 2,074,121 1,687,132

   Weighted average number of shares

   -------------------------- --------------------------

   in issue (in thousands) 2,011,495 2,011,495 2,011,495 2,011,495

   Basic and diluted earnings per share

   -------------------------- --------------------------

   (AED) 0.35 0.30 1.03 0.84

   ============= ============= ============= =============

5. Fiduciary activities

   The Group holds assets in a fiduciary capacity for its customers without recourse. At 30 September 2025, market value of such assets amounted to AED 6,507 million (31 December 2024: AED 5,905 million) and are excluded from the condensed consolidated interim financial information of the Group.

6. Cash and cash equivalents

   	30 September 2025		30 September 2024
   	(Un-audited)		(Un-audited)
   	AED'000		AED'000
   Cash in hand and balances with UAE Central Bank	9,802,320		7,275,033
   Due from other banks	16,782,053		11,716,752
   	26,584,373		18,991,785
   Less: Due from other banks original maturity of three months or more	(14,721,576)		(10,940,120)
   Less: Overdrawn account with UAE Central Bank	-		(208,517)
   Cash and cash equivalents	11,862,797 =============		7,843,148 ==============

7. Operating segments

   Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting to the management, which is responsible for allocating resources to the reportable segments and assesses its performance. All operating segments used by the Group meet the definition of a reportable segment under IFRS 8.

   The Group has four main business segments:

   • Retail banking - incorporating individual customer and certain business current accounts, savings accounts, deposits, credit and debit cards, individual customer loans and mortgages;

   • Wholesale banking - incorporating transactions with corporate bodies including government and public bodies and comprising of loans, advances, deposits and trade finance transactions of corporate customers and financial institutions, including Treasury related activities on the dealing room, related money market, and foreign exchange transactions and hedging activities with other banks and financial institutions;

   • Business banking - incorporating transactions comprising of loans, advances, deposits and trade finance transactions of SME; and

   • Head Office and Others - Comprises Central funding & other support functions including insurance related transactions of Raknic subsidiary.

The above segments include conventional and Islamic products and services of the Group.

As the Group's segment operations are all financial with a majority of revenues deriving from interest and fees and commission income, the management relies primarily on revenue and segmental results to assess the performance of the segment.

Funds are ordinarily allocated between segments, resulting in funding cost transfers disclosed in inter-segment revenue. Interest charged for these funds is based on the Group's funds transfer pricing guidelines. There are no other material items of income or expense between the business segments.

The Group's management reporting is based on a measure of net profit comprising net interest income, loan

impairment charges, net fee and commission income, other income and non-interest expenses.

Operating segments are identified on the basis of internal reports about the components of the Group that are regularly reviewed by the CEO (the chief operating decision maker) in order to allocate resources to the segment and to assess its performance.

1. Operating segments (continued)

   The segment information provided to the management for the reportable segments for the periods ended 30 September 2025 and 30 September 2024 are as follows:

   	Retail Banking		Wholesale Banking		Business Banking		Head office and Others		Total
   	AED'000		AED'000		AED'000		AED'000		AED'000
   30 September 2025
   Net external interest income	665,690		1,202,504		686,890		(232,007)		2,323,077
   Income from Islamic financing net of distribution to depositors	166,006		57,350		236,556		(58,257)		401,655
   Internal revenue	(20,787)		(531,772)		412,995		139,564		-
   Net interest income and net income
   from Islamic financing	810,909		728,082		1,336,441		(150,700)		2,724,732
   Non-interest income	412,767		490,961		256,361		9,718		1,169,807
   Operating income	1,223,676		1,219,043		1,592,802		(140,982)		3,894,539
   General and administrative expenses	(637,919)		(215,921)		(481,510)		(4,380)		(1,339,730)
   Operating profit before net impairment charge and tax	585,757		1,003,122		1,111,292		(145,362)		2,554,809
   Net impairment charge	(106,161)		(40,850)		(220,019)		96,211		(270,819)
   Profit for the period before tax	479,596		962,272		891,273		(49,151)		2,283,990
   Income tax expense	-		-		-		(203,491)		(203,491)
   Profit for the period after tax	479,596 ============		962,272 =============		891,273 ============		(252,642) =============		2,080,499 ============
   As at 30 September 2025
   Segment assets	24,038,452		62,592,860		9,795,593		3,031,831		99,458,736
   	============		=============		============		=============		============
   Segment liabilities	20,733,312		28,415,805		25,434,364		10,673,193		85,256,674
   	============		=============		============		=============		============

   29. Operating segments (continued)
   	Retail	Wholesale		Business	Head office
   	Banking	Banking		Banking	& Others		Total
   30 September 2024	AED'000	AED'000		AED'000	AED'000		AED'000
   Net external interest income	635,045	1,248,141		667,029	(167,195)		2,383,020
   Income from Islamic financing net of
   distribution to depositors	131,110	(17,282)		204,674	(38,069)		280,433
   Internal revenue 51,084 (555,418) 374,604 129,730 - Net interest income and net income
   from Islamic financing	817,239		675,441	1,246,307		(75,534)		2,663,453
   Non-interest income	359,728		305,259	239,440		(15,527)		888,900
   Operating income	1,176,967		980,700	1,485,747		(91,061)		3,552,353
   General and administrative expenses	(590,464)		(184,935)	(415,569)		(1,772)		(1,192,740)
   Operating profit before net impairment charge and tax	586,503		795,765	1,070,178		(92,833)		2,359,613
   Net impairment charge (261,811) (6,524) (184,241) (52,989) (505,565)
   Profit for the period before tax	324,692	789,241		885,937	(145,822)		1,854,048
   Income tax expense	- - -				(164,627) (164,627)
   Profit for the period after tax	324,692 789,241 885,937				(310,449) 1,689,421
   As at 31 December 2024
   Segment assets	22,999,414 53,611,658 9,545,088				2,169,247 88,325,407
   Segment liabilities	18,936,509 24,693,886			23,492,182	9,406,151		76,528,728

2. Related parties

   Related parties comprise key management, businesses controlled by shareholders and directors as well as businesses over which they exercise significant influence. During the period, the Group entered into transactions with related parties in the ordinary course of business. No stage 3 provisions for impairment have been recognised pertinent to related parties (2024: Nil). Further, stage 1 and 2 ECL amounted to AED 7.3 million (2024: AED 32.9 million).

   The transactions with related parties and balances arising from these transactions are as follows:

   Nine month period ended

   30 September

   	2025	2024
   	(Un-audited)	(Un-audited)
   	AED'000	AED'000
   Transactions during the period
   Interest income	88,829	100,548
   Insurance income	93,242	63,748
   Commission income	9,154	4,223
   Other income	6,714	3,029
   Interest expense	114,609	139,462
   Insurance expense	52,444	35,878
   Other expenses	261	202
   Directors' and key management personnel's remuneration and sitting fees	75,231	60,048

   30. Related parties (continued)
   	30 September		31 December
   	2025		2024
   	(Un-audited)		(Audited)
   Balances	AED'000		AED'000
   Loans and advances:
   - Shareholders and their related companies	1,983,494		1,988,941
   - Directors and their related companies	553		4,469
   - Key management personnel	7,080		16,861
   	1,991,127		2,010,271
   	==============		==============
   Deposits
   - Shareholders and their related companies	4,750,923		4,898,438
   - Directors and their related companies	31,472		22,316
   - Key management personnel	19,051		12,911
   	4,801,446		4,933,665
   	==============		==============
   Other assets
   - Shareholders and their related companies	71,809		29,121
   	==============		=============
   Other liabilities
   - Shareholders and their related companies	4,114		1,250
   - Post-retirement benefits payables	8,498		9,011
   	12,612		10,261
   	==============		=============
   Commitments, contingent liabilities and derivative contracts
   - Shareholders and their related companies	9,652,688		5,899,271
   - Directors and their related companies	792		1,050
   - Key management personnel	1,619		1,288
   	9,655,099		5,901,609
   	==============		=============

   Interest income and expense majorly relates to transactions with major shareholder and their related entities.

3. Fair values of financial assets and liabilities

Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction. Consequently, differences can arise between the carrying values and fair value estimates of financial assets and liabilities. Underlying the definition of fair value is the presumption that the Group is a going concern without any intention or requirement to materially curtail the scale of its operations or to undertake a transaction on adverse terms. At 30 September 2025, the carrying value of the Group's financial assets and liabilities approximates their fair values, except for the below mentioned financial assets and liabilities:

The fair value measurements are categorized into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows:

Quoted market prices - Level 1

Financial instruments are classified as Level 1 if their values are observable in an active market. Such instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions.

Valuation techniques using observable inputs - Level 2

Financial instruments classified as Level 2 have been valued using models whose inputs are observable in an active market. Valuation based on observable inputs includes financial instruments such as forward foreign exchange contracts which are valued using market standard pricing techniques.