Financial News

RAKBANK more than doubles its quarterly Net Profit at AED 450M for Q1’23

Published

2 years ago

May 8, 2023

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RAKBANK delivered a Net Profit increase of 105% for Q1 2023 driven by a robust and diversified growth on both sides of the balance sheet. This was underpinned by strong sales momentum and lower cost of funds.

Raheel Ahmed – CEO of RAKBANK

Total Income performance was supported by a strong net interest income of AED 788.8M, up 46.0% YoY. Net interest margins increased to 4.9% against 3.8% (Q1’22) and continues to be among the highest in the Industry. Q1’23 non-interest income of AED 284.4M, up 52.5% YoY. The growth in non-interest income was driven by higher forex and derivative income.

Gross loans & advances at AED 38.7B, reflecting a 1.4% increase compared to 31 December 2022 on the back of a changing balance sheet mix in line with the strategic direction of the bank.

Customer deposits stood at AED 46.4B, an increase of 3.3% compared to 31 December 2022. The Bank has a strong Current & Saving Account (CASA) franchise with the CASA ratio of 70.5%.

Cost of Risk remained low due to the Bank’s diverse business mix and resilient UAE economic environment, leading to a 30.9% reduction in impairments as against Q4’22. Impaired Loan provision coverage ratio increased to 192.1% against 137.8% in Q1’22, remaining one of the strongest in the industry.

The Bank achieved balanced growth across all Business Segments:

Personal Banking:

Gross loans & advances at AED 19.1B are up 1% YoY and +2% against FY’22 driven by the sales momentum across products with balance sheet for Auto loans +6%, Mortgages +5% and Personal loans +0.3%.
Customer deposits of AED 16.7B, are up 22% YoY and +6% during the quarter driven by higher Term deposits +30% & CASA +0.3%.
Q1’23 income supported by net interest income of AED 229M, +19.0% YoY and non-interest income of AED 123M, +1% YoY.

Business Banking:

Gross loans & advances of AED 9.3B, are up 12% YoY and +3% against FY’22 mainly through higher volumes for Rak business loans +5%.
Customer deposits of AED 19.7B, are up 14% YoY and +7% during the quarter driven by higher CASA deposits +7% & Term deposits +2.7%.
Q1’23 income supported by net interest income of AED 337M, +57.0% YoY and non-interest income of AED 77M +6% YoY.

Wholesale Banking & Others:

Gross assets (including lending to banks) of AED 19.8B, are up 13% YoY and +1% against FY’22 mainly driven by higher FI bank lending +2%.
Customer deposits of AED 9.9B, are up 13% YoY and +7% during the quarter.
Q1’23 income supported by net interest income of AED 224M, +68.0% YoY and non-interest income of AED 84M against a loss of 8Mn in Q1’22.

RAKBANK delivered strong shareholder returns with ROE of 19.4% and ROA of 2.8%, and remained highly liquid and well capitalized.

The Bank’s Capital Adequacy Ratio (CAR) was at 16.8%.
The regulatory eligible liquid asset ratio at 14.8%, compared to 12.8% as at 31 December 2022, and the advances to stable resources ratio stood comfortably at 81.8% compared to 79.7% at the end of 2022.
Cost-income ratio improved to 36.2% driven by strong cost discipline, automation and digitization.
The Bank’s non-performing loans ratio improved to 3.0% against 3.6% in Q1’22.

Raheel Ahmed, CEO of RAKBANK said, “Delivering on our multi-year strategy, we accelerated our growth and achieved a record net profit of AED 450M and a record total income of AED 1,073M for the quarter. In addition to this impressive growth, I am very pleased with the progress we are making in laying the foundation for sustainable growth.

In diversifying our income sources, we achieved robust growth on both sides of the balance sheet, across interest and fee incomes, and in all our segments. In terms of building deeper customer relationships, we achieved strong growth in digitally active customers with digital transactions growing by 12% YoY. Our high CASA ratio in our deposit base of 70.5% despite the high interest rate environment is a testament of the strong relationships we built with our customers and clients. We enhanced our operational leverage and improved our cost-income ratio through our strong cost discipline, and our cost of risk reduced via diversifying our business mix. The Bank remains well capitalized and liquid with a Capital Adequacy Ratio of 16.8% and an Eligible Liquid Asset Ratio of 14.8%. As a result of our progress, we achieved an ROE of 19.4% and ROA of 2.8%.

Being one of the largest SME banks in the UAE, we continue to back entrepreneurs and start-ups by opening more than 4,000 business accounts in Q1 2023, of which 1,600 accounts were opened for start-ups. Similarly, we disbursed AED 571M in business loans, out of which AED 394M were disbursed for new business loan customers.

As we grow, we are investing heavily in technology while maintaining cost discipline to digitize customer journeys, upgrade core data architecture, and revamp compliance and risk infrastructure. This investment will enable RAKBANK’s journey to provide a superior customer experience that is characterized by its hyper-personalization and relevance. The recent launch of our first fully digital accounts opening capability with straight-through processing is a good example of how we are digitizing our customer journeys.

Continuing from Q4 2022, we are focusing on expanding strategic hires to lead our growth, and we remain committed to and supporting the career aspirations and ambitions of our colleagues. Special attention is drawn to developing our Emirati talents as we align ourselves to the UAE leadership’s mission of growing and nurturing local talent.

As one of the nation’s leading financial institutions, RAKBANK recognizes our responsibility to support the ‘UAE Net Zero by 2050’ initiative. The team is actively engaged with RAK Government on COP28 submissions, working on financial inclusion and reducing emissions. We continue to support financial inclusion and accelerate digital remittances through our wages protection system partner and the United Nations Capital Development Fund.

Lastly, our outlook for FY 2023 remains positive yet cautious, with the buoyant UAE economy and uncertain global macro set up as backdrops. While we closely monitor the headwinds of inflation, rising interest rates, geopolitical developments, we will continue building on the Bank’s strengths and remain committed to delivering on our strategy.”

Digital Transactions

+12% YoY

Card Spends

+24% YoY

Payment through our rails (In/Out)
+9% YoY

Digitally Active Customers

+15% YoY

Financial Highlights for Q1 2023

Income Statement Highlights	Quarter Results			Variance
(AED Mn)	Q1’23	Q4’22	Q1’22	Q1’23	Q1’23
(AED Mn)	Q1’23	Q4’22	Q1’22	vs Q1’22	vs Q4’22
Net Interest Income and net income from Islamic financing	788.8	733.1	540.4	46.0%	7.6%
Non-Interest Income	284.4	261.6	186.5	52.5%	8.7%
Total Income	1,073.2	994.8	726.9	47.6%	7.9%
Operating Expenditures	(389.0)	(371.4)	(372.4)	(4.5%)	(4.7%)
Operating Profit Before Provisions for Impairment	684.2	623.3	354.6	93.0%	9.8%
Provisions for Impairment	(233.9)	(338.7)	(134.5)	(73.9%)	30.9%
Net Profit	450.3	284.6	220.1	104.6%	58.2%

Balance Sheet Highlights	Results as at			Variance
(AED Bn)	Mar’23	Dec’22	Mar’22	Q1’23	Q1’23
(AED Bn)				vs Q1’22	vs Q4’22
Total Assets	68.9	66.4	60.0	14.8%	3.8%
Gross Loans & Advances	38.7	38.1	37.2	4.1%	1.4%
Deposits	46.4	44.9	39.8	16.4%	3.3%

Key Ratios	Quarter Ratios			Variance
Percentage	Mar’23	Dec’22	Mar’22	Q1’23	Q1’23
Percentage	Mar’23	Dec’22	Mar’22	vs Q1’22	vs Q4’22
Return on Equity*	19.4%	12.5%	10.5%	8.9%	6.9%
Return on Assets*	2.8%	1.7%	1.5%	1.3%	1.1%
Net Interest Margin*	4.9%	4.5%	3.8%	1.1%	0.4%
Cost to Income	36.2%	37.3%	51.2%	15.0%	1.1%
Impaired Loan Ratio	3.0%	3.0%	3.6%	0.6%	0.0%
Impaired Loan Coverage Ratio	192.1%	181.7%	137.8%	54.3%	10.4%
Total Capital Adequacy Ratio Basel III^**	16.8%	16.4%	16.5%	0.3%	0.4%
* Annualized
**After application of Prudential Filter

Profitability Growth supported by Income momentum and improvement in Provisions

Net Profit increased by 104.6% to 450.3M (vs Q1’22 104.6% and Q4’22 58.2%).
Net Interest Income and Income from Islamic products net of distribution to depositors increased by 46.0% to AED 788.8M (vs Q4’22 7.6%).
Interest income from conventional loans and investments increased by 79.7%, while interest costs on conventional deposits and borrowings increased by 300.5%. Net income from Sharia-compliant Islamic financing increased by 7.8%.
Non-Interest Income increased by 52.5% to AED 284.8M (vs Q1’22 52.5% and Q4’22 8.7%), primarily due to forex and derivative income booked in Q1 2023.
Total Income increased by 47.6% (vs Q4’22 7.9%), benefiting from the balance sheet growth momentum.
Operating Expenditure was AED 389.0M (vs Q1’22 AED 372.4M), reflecting a 4.5% increase compared to the same period in 2022, and a 4.7% increase compared to Q4 2022, due to the Bank’s growth investments.
Operating Expenses increased mainly due to higher staff costs, card expenses, and other operating expenses. However, these were partly offset by lower IT expenses, occupancy costs, depreciation, and communication expenses.
Cost-to-Income ratio for the bank decreased to 36.2% (vs Q1’22 51.2% and Q4’22 37.3%).
Provision for credit loss increased by 73.9% to AED 233.9M for Q1 2023 compared to Q1 2022, due to prudent precautionary measures in anticipation of expected developments. However, compared to Q4 2022, the provision for credit loss decreased by 30.9% for Q1 2023.
Net Credit Losses to average loans and advances closed at 2.5% (vs Q4’22 3.4%).

Balance Sheet crosses AED 68.9B with a strong uptick across all customer segments.

Balance sheet crosses AED 68.9B as the Total Assets increased by AED 2.5B compared to 31 December 2022, reflecting a growth of 3.8%, with an increase in Cash/Central Bank balances by AED 929.2M, Investments by AED 805.8M, Gross Loans and Advances by AED 551.9M and Lending to Banks by AED 480.3M as compared to 31 December 2022.
Business Banking portfolio increased by AED 264M, Retail Banking by AED 286.2M and Wholesale Banking segment (including bank lending) increased by AED 211M compared to 31 December 2022.
Business Banking recorded 2.9% growth compared to 31 December 2022 with Business Loans growing by 5.3% and an increase of 1.5% on the Trade and Working Capital Loans portfolio.
Retail Banking reflected a growth of AED 286.2 M supported by a strong sales momentum across products with Mortgages growing by 4.8% and Auto Loans by 6.4%.
Non-performing Loans and Advances to Gross Loans and Advances ratio remained same at 3.0% as at 31 March 2023 compared to 31 December 2022.

Robust Growth in Customer Deposits as we continue to be the main bank for most of our customers

Q1’23 Customer deposits increased by 3.3% compared to 31 December 2022, mainly due to an increase of AED 1,089.5M in CASA deposits and AED 404.7M in time deposits, endorsing the trust our customers place in RAKBANK’s solutions and services. RAKBANK has built a strong CASA franchise with a CASA ratio of 70.5 % as at 31 March 2023.

Strong Capital and Liquidity position

The Bank’s Capital and Liquidity ratios remained strong.
With a Total Capital Ratio as per Basel III, after the application of prudential filter, at 16.8% compared to 16.4% at the end of 2022.
The regulatory eligible liquid asset ratio at the end of 31 March 2023 at 14.8%, compared to 12.8% as at 31 December 2022, and the advances to stable resources ratio stood comfortably at 81.8% compared to 79.7% at the end of 2022.

Healthy Cash Flows from operating activities

Cash and cash equivalent as at 31 March 2023 were AED 4.7B compared to AED 4.3B as at 31 December 2022.
Net cash generated from operating activities was AED 1.2B, AED 819.8M was used in investing activities and AED 4.7M used in financing activities.

Impact of Projected Capital Expenditure and Development

The Group incurred AED 37.3M in capital expenditure in Q1 2023.
RAKBANK will carry on advancing its investment towards customer-centric technology transformation.

Ratings

RAKBANK gets continuously rated by leading rating agencies with their latest ratings shown in the table below. This rating reflects the institutional strength of the Bank that is backed up by trust and transparency in financial reporting.


Rating Agency	Last Update		Deposits	Outlook
Moody’s		November 2022	Baa1 / P-2	Stable
Fitch		April 2023	BBB+ / F2	Stable
Capital Intelligence		August 2022	A- / A2	Positive

Financial

Rent Instalments Dubai: How Slices Reshape Tenant Loyalty

Published

1 day ago

October 2, 2025

Integrator Web-Editor

By Omar Abu Innab, CEO & Co-founder

In Dubai, the handover of a rent cheque often feels like a financial earthquake. For many tenants, it is the single largest outgoing of the year — one that empties savings accounts, spikes anxiety, and disrupts liquidity overnight. Traditional rent structures, whether annual lump sums or quarterly payments, may suit landlords, but they rarely reflect the way people actually earn and spend money. Salaries arrive monthly, bills are spread weekly, and life’s surprises never wait for cheque dates.

This mismatch does more than strain finances. It creates uncertainty and detachment. Tenants under pressure from upfront costs are less likely to renew, more likely to negotiate aggressively, and often hesitant to see their rental as a long-term home.

The Slice Effect: A Shift in Behaviour

Break the rent into twelve manageable instalments, however, and the entire psychology changes. Rent instalments in Dubai don’t just ease cash flow; they reframe how tenants view their homes. Instead of confronting a yearly burden, rent becomes a predictable routine woven into monthly salary cycles, much like utilities or car payments.

This subtle shift encourages tenants to stay longer. Not because they are tied down, but because they no longer face the stress of large financial shocks. Rent is reframed from a hurdle into a lifestyle expense, creating loyalty that landlords value. Lower turnover means fewer vacant periods, steadier income, and stronger landlord-tenant relationships.

Rent Now, Pay Later: A Quiet Revolution

Dubai’s rental market, once dominated by cheque culture, is transforming. Platforms like Keyper have introduced Rent Now, Pay Later (RNPL), enabling tenants to pay monthly while landlords continue receiving rent on their preferred schedule — even upfront.

The dual benefits are striking. Tenants enjoy breathing space and improved cash flow. Landlords retain financial security and stability. Automation bridges the gap, ensuring seamless transactions. Beyond convenience, RNPL creates ripple effects: tenants channel savings into investments or lifestyle upgrades, landlords attract stronger demand, and properties offering RNPL gain a competitive edge in the market.

Trust Through Proptech

Scepticism around flexible payments is natural. Landlords often worry about defaults or unreliable tenants. Proptech innovation addresses this head-on. By embedding tenant screening, open banking, and digital KYC processes, platforms ensure that only qualified tenants gain access to instalment options.

This screening provides landlords with confidence while giving tenants a frictionless, subscription-style experience. The outcome is a healthier rental ecosystem where both sides trust the process. Properties listed with RNPL attract interest faster, lease quicker, and enjoy higher renewal rates.

More Than Money: Cultural Change in Renting

Flexible rent payments are not only about financial management — they represent a cultural shift. Tenants paying monthly are more likely to personalise their homes, join neighbourhood communities, and think long-term. They do not just occupy apartments; they build lives in them.

In a global city like Dubai, where talent continually arrives from abroad, this cultural stickiness is invaluable. By reducing churn and fostering belonging, RNPL aligns Dubai with international leasing standards. For professionals moving from cities like London or New York, monthly rent instalments feel familiar, making Dubai more competitive as a destination.

Why Instalments Mean Belonging

The shift from lump sums to instalments does more than spread payments. It changes perceptions. Tenants breathe easier when the mountain of rent is broken into smaller hills. They stay longer, invest emotionally in their homes, and engage with their communities. For landlords, this means steadier returns. For the city, it enhances financial well-being and strengthens community ties.

Cheque culture once defined Dubai’s property landscape. Today, rent instalments in Dubai — powered by RNPL — are writing a new narrative. Flexible payments bring stability, foster loyalty, and encourage tenants not just to rent, but to settle in.

Read our previous post on Ryan Acquires Dhruva Stake Expanding Middle East Presence

Financial

US based Ryan and Dhruva Form Strategic Joint Venture to Expand Global Tax Services Footprint

Published

3 days ago

September 30, 2025

Integrator Web-Admin

Ryan and Dhruva Form Strategic Joint Venture

Dhruva, a premier tax advisory firm with deep expertise across the Middle East, India, and Asia, today announced a strategic investment by Ryan, a leading global tax services and software provider. This partnership marks a significant step in Ryan’s expansion into the Middle East, India, and Asia, enhancing its ability to serve clients in high-growth markets while reinforcing its global capabilities.

As part of the transaction, US based Ryan will acquire a majority stake in Dhruva, creating a joint venture in India, Ryan’s senior leadership will join the Board of Dhruva, Partners of Dhruva will acquire equity in Ryan, ensuring long-term alignment, and Dinesh Kanabar, CEO of Dhruva Advisors, will take on the role of Vice Chairman at Ryan.

Founded in 2014 by Dinesh Kanabar, Dhruva has rapidly grown into one of the most respected tax advisory firms in India and the UAE. With 38 partners and senior leaders, supported by over 500 professionals across 11 offices in the Middle East, India, and Singapore, Dhruva advises leading businesses across industries such as aerospace, automotive, chemicals, finance, healthcare, technology, and real estate.

“Joining Ryan is a major milestone in Dhruva’s global growth journey as this partnership extends our global reach,” said Dinesh Kanabar, Chairman and CEO of Dhruva. “My leadership team and I chose to partner with Ryan because we believe it provides the strongest platform for our clients and team members for continued success. I am encouraged by the alignment of our respective leadership teams to meet the growing needs of our multinational clients and look forward to driving that growth in my new role as Vice Chairman at Ryan.”

“This partnership with Ryan is a defining moment for Dhruva. For the Middle East, this partnership is more than just scale – it’s about combining global expertise and regional insights. Together we are not only expanding scale but also shaping the future of tax advisory in the Middle East,” said Nimish Goel, Partner and Head of Middle East at Dhruva.

“We are excited to enter into this strategic partnership with Dhruva, which gives us a client-facing presence in the Middle East for the first time. The combination of our two firms will provide clients with unrivalled service in one of the fastest-growing markets for tax advisory services in the world,” said Tom Shave, President, Europe & Asia Pacific, Ryan.

Dhruva’s services span corporate tax and regulatory advisory, M&A tax structuring, indirect tax, transfer pricing, and cross-border trade compliance.

This move builds upon Ryan’s longstanding presence in India, where the firm has operated for over two decades with a primary office in Hyderabad, while marking its first client-facing entry into the Middle East. Together, Ryan and Dhruva will now expand across the Middle East and Asia with offices in Dubai, Abu Dhabi, Riyadh, and Singapore.

Financial

White-glove banking reinvented for a digital generation

Published

1 week ago

September 24, 2025

Integrator Web-Editor

Online Mobile Banking Services Isometric Flowchart

By Sara Hoteit, Regional Sales Lead, Backbase Middle East

For decades, white-glove banking in the Middle East relied on personal trust. High-net-worth individuals (HNWIs) and family offices turned to relationship managers (RMs) for access, expertise, and discretion. However, today’s digital-first generation of clients is inheriting wealth, and they expect faster, more transparent, and more personalised service than traditional models can deliver.

Why are younger clients walking away?

Recent surveys show a dramatic shift. Capgemini reports that 81% of affluent heirs plan to change their wealth managers. The reason is not a lack of expertise, but dissatisfaction with slow, opaque, and disconnected experiences.

Traditional private banking often resembles a black box: clients see limited transparency, receive quarterly reports, and rely on infrequent meetings. In contrast, new generations want data, control, and insights at their fingertips. EY research confirms this gap, noting that only 7% of Gen Z trust bank advisers for financial guidance. Digital-first wealth platforms like Sarwa and StashAway are stepping in to meet these demands.

The human role in private banking

Despite this shift, the human element remains essential. Relationship managers still play a critical role in building trust and offering tailored advice. However, many spend most of their time on administrative tasks rather than client-facing work. McKinsey estimates up to 70% of RM time goes to back-office processes.

For banks, the solution lies in rethinking the role of advisers and empowering them with technology that eliminates inefficiencies while elevating client engagement.

Digital tools that elevate wealth management

Digitisation should enhance, not replace, personal service. Clients now expect customisable dashboards that reflect estate planning, performance analytics, or ESG-focused investments. Both advisers and clients benefit when these tools deliver real-time insights that support collaboration.

In addition, clients want flexible access to their advisers. EY notes that 85% still value personal advice, but they prefer it delivered on their terms—through secure chat, video calls, or collaborative digital platforms.

How AI empowers relationship managers

Technology can give RMs the edge they need. AI tools identify risks, recommend diversification, and flag liquidity needs. When embedded in RM workspaces, these insights keep advice timely and proactive.

Automation further reduces administrative work, allowing advisers to spend more time building meaningful client relationships. This shift restores the core value of wealth management: trust, loyalty, and personalised advice.

From products to financial journeys

Wealthy clients no longer want just products; they want holistic support. They expect advisers to guide them through succession planning, family governance, philanthropy, and alternative investments. Global disruptors like Robinhood proved how fast expectations can change, and regional players such as Baraka are echoing this trend.

Reinventing the white-glove model

Private banking is not obsolete, but it must adapt. Banks that reinvent white-glove banking for digital-first clients will combine AI-driven efficiency with human empathy. By empowering advisers, streamlining processes, and blending digital convenience with trust, banks can keep this premium model relevant.

In the end, successful institutions will prove that strong relationships, enhanced by smart technology, remain the most valuable currency in wealth management.

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