The National Bank of Ras Al Khaimah (RAKBANK) today announced its financial results for the first half of 2025, delivering a solid performance marked by robust growth in profitability, assets, and loan portfolios.
Key financial highlights – H1 2025
Net profit soars:
- RAKBANK posted a net profit of AED 1.374 billion for H1 2025, a 26.1 percent increase compared to the same period last year.
- For Q2 2025 alone, profit after tax reached AED 669 million, up 22 percent year-on-year (YoY).
Operating profit growth:
- Operating profit for the first half stood at AED 1.680 billion, representing a 7.7 percent YoY increase, supported by strong balance sheet expansion and continued momentum in non-interest income.
Read: Fitch affirms RAKBANK’s BBB+ long-term issuer default rating with stable outlook
Strategic investment drives cost increase:
- Operating expenses rose by 12.9 percent YoY, reflecting the bank’s ongoing investments in technology, data infrastructure, workforce development, and enhancing customer experience.
- The cost-to-income ratio (CIR) stood at 34.6 percent, slightly up from 33.6 percent in H1 2024.
Balance sheet strengthens with broad-based lending growth
Total assets:
- RAKBANK’s total assets grew by 18.1% YoY, reaching AED 95 billion as of June 2025.
Loan book expansion:
- Gross loans and advances rose to AED 51.3 billion, marking a 17.4 percent increase YoY. Growth was driven across all segments, with wholesale banking loans expanding by a substantial 33.0 percent, in line with the bank’s diversification strategy.
CASA growth:
- Current and savings account (CASA) deposits rose to AED 40.4 billion, up 12.2% YoY, maintaining a strong CASA ratio of 66%, one of the highest in the industry.
Asset quality and capital remain strong
Improved credit quality:
- The net impairment charge to average loans and advances ratio improved significantly to 0.7 percent, down from 1.7 percent in H1 2024, reflecting a strategic shift towards secured, low-risk assets and a favorable macroeconomic environment.
Impairment metrics:
- Impaired loan ratio improved to 1.9 percent, down from 2.4 percent in H1 2024.
Provisions to gross loans ratio decreased to 5.2 percent, compared to 6.2 percent in the same period last year, ensuring solid risk coverage.
Capital and liquidity:
- RAKBANK remains well-capitalized with a capital adequacy ratio (CAR) of 18.8 percent. The bank also maintained a healthy liquidity position, with an eligible liquid asset ratio of 15.1 percent (vs. 15.5 percent in H1 2024) and a lending to stable resources ratio of 80.7 percent, up from 79.4 percent in H1 2024.
Enhanced shareholder returns
Return on equity (ROE):
- Improved to 22.1 percent, up from 20.4 percent in H1 2024.
Return on assets (ROA):
- Rose to 3.1 percent, compared to 2.9 percent in the same period last year.
RAKBANK’s H1 2025 results underscore the bank’s strategic focus on balanced growth, risk management, and customer-centric innovation. With a strengthened balance sheet, improved profitability, and a diversified lending portfolio, the bank is well-positioned to sustain momentum through the remainder of the year.
