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RAKBANK Achieves Record Half-Yearly Net Profit of AED 901M, Marking a Remarkable 71% Year-on-Year Increase.

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The National Bank of Ras Al Khaimah (RAKBANK) reported its financial results for the first half of 2023 (“H1’23”)

 

Highlights H1 2023

Total Income

 

AED 2.2B

+42%

YoY

Gross Loans & Adv.

~AED 40B

+7%

YoY

Deposits

 

AED 49B

+19%

YoY

Return on Equity

 

19.3%

Return on Assets

 

2.7%

 

Key Financial Highlights

Record net profit in H1 2023 driven by diversified growth in balance sheet, continued sales momentum and strong credit quality.

  • Income up 42% YoY as sustained increase in operating accounts drive low cost deposits while a well diversified growth on the asset side
  • Cost increases 7% YoY as we accelerate our strategic transformation for H1’23 whilst delivering operational efficiencies, cost to income ratio for H1’23 at 3% vs. 48.0% in H1’22.
  • Gross Loans & advances increased to ~AED 40B, up 7% YoY, whilst all segments reflect growth, Wholesale banking advances up 13% YoY representing 27% of the asset mix against 25% in H1’22.
  • Customer deposits increased to AED 49B, up 19% YoY with the share of CASA deposits at 68% being one of the best in the industry, reflecting a 10% growth YoY.
  • Portfolio credit quality remains robust with cost of risk at 2.6% and with one of the industry leading impaired loan coverage ratio of ~232% for H1’23 against ~142% for H1’22.

RAKBANK delivered strong shareholder returns with ROE of 19.3% and ROA of 2.7%, whilst remaining highly liquid and well capitalized.

  • Strong profitability and diversified growth on the balance sheet drives healthier Capital Adequacy Ratio (CAR) at 7% for H1’23 vs. 16.8% in H1’22.
  • We remained highly liquid with Regulatory Eligible Liquid Asset Ratio at 15.1% for H1’23 and the Advances to Stable Resources Ratio stood comfortably at 79.9%.
  • The bank delivered enhanced shareholder value with the Return on Assets improving to 7% against 1.8% for H1’22.
  • The Impaired Loan ratio improved to 5% against 3.4% for H1’22.

Raheel Ahmed, Group Chief Executive Officer, RAKBANK said, We continue to make strong progress in implementing our new strategy to build a ‘digital bank with a human touch’. At the same time we consistently pivot the culture and mindset of our company to being ‘customer first’ in everything we do.

Our active customer base grew 5% YoY. In H1 we supported over 900 customers with home loans. Being the ‘go to’ SME bank of the UAE, we opened 7,800 accounts for budding entrepreneurs and small businesses. We also disbursed over AED 1 billion of business loans. Our wholesale banking business is now well established with strong product capabilities and is growing in double digits.

Our existing customers continue to increase their trust and engagement with us. Our deposits grew by 19% YoY with robust growth in operating accounts. Spends on our cards are up 20% YoY. Our digital banking was accessed over 21M times in H1 (up 15%) and digital transactions have grown over 10% YoY.

A deep-rooted commitment to contribute back to the society in which we operate is embedded in our DNA. We actively promote financial inclusion and green financing solutions. In line with UAE’s vision for Net Zero by 2050, we have partnered with Honeywell to reduce our electricity consumption by 20% in next 12 months.

Whilst the UAE economy continues to demonstrate positive momentum & growth as we enter the second half of 2023, we do remain cautious about the global macro environment and the downstream impact of rising interest rates & inflation on our customers.

We enter the second half of the year with great excitement as we prepare to launch a range of transformational initiatives in the market. These initiatives will showcase our relentless commitment to innovation and our dedication to meeting the evolving needs of our customers.”

Balance Sheet crosses AED 71 Billion with a strong uptick across customer segments

  • Balance Sheet crosses AED 71B as the Total Assets increased year to date by AED 5B reflecting a growth of 8.3%, due to an increase in Gross Loans and Advances by AED 1.8B, Cash and Central Bank balance increased by AED 2.2B, Lending to Banks which increased by AED 1.4B and Investments increased by AED 260M.
  • Lending in the Retail Banking increased by AED 888M, Wholesale Banking segment increased by AED 376M and Business Banking lending increased by AED 495M compared to 31 December 2022.
  • Wholesale Banking Segment reflects a strong YTD growth of 7% on the back of

~7% growth in the Corporate portfolio.

  • Growth for Retail Banking supported by a strong sales momentum across products, with Mortgage loans reflecting 11.4% YTD growth, Auto loans growing by 11.2%, and Credit Cards by 1%.
  • Business Banking segment recorded a 5% growth YTD backed by 10.3% growth on Business Loans while trade and working capital loans reflected 2.5% growth YTD.
  • Non-performing Loans and Advances to Gross Loans and Advances ratio was 2.5% as at 30 June 2023 compared to 4% as at 30 June 2022 and 3.0% as at December 2022.

Strong growth in Customer Deposits as we become the main bank for more of our customers

  • Customer deposits increased by 19.4% as against first half of 2022 and 9.1% or AED 1B to AED 49.0B compared to 31 December 2022 mainly due to an increase of AED 2.5B in time deposits and AED 1.6B in CASA accounts, endorsing the trust our customers place in the RAKBANK franchise and our services.

Capital and Liquidity

  • The Bank’s total Capital Ratio as per Basel III, after the application of prudential filter was 7% compared to 16.4% at the end of the previous year.
  • The regulatory Eligible Liquid Asset Ratio at the end of the first half was 15.1%, compared to 12.8% as at 31 December 2022, and Advances To Stable Resources Ratio stood comfortably at 9% compared to 79.4% at the end of 2022.

Cash Flows

  • Cash and cash equivalents as at 30 June 2023 were AED 4.0B compared to AED 3B as at 30 June 2022.
  • Net cash generated from operating activities was AED 2M, AED 299.0M was used in investing activities and AED 192.2M was used in financing activities.

Impact of Capital Expenditure and developments

  • The capital expenditure more than doubled to AED 80.3M in H1’23 against 31.9M in H1’22 as we continued to invest in our digitization initiatives and strengthening our regulatory and customer protection framework
  • The Bank will continue to invest in innovative digital first solutions to offer a highly personalized & digitized experience.

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 by trust and transparency in financial reporting.

 

 

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

 

 

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MultiBank Group and Khabib Nurmagomedov Launch an Exclusive Worldwide Multi-Billion-Dollar Joint Venture to Build the World’s First Regulated Tokenized Sports Ecosystem

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Multibank Group, the financial derivatives institution, has entered into an exclusive worldwide multi-billion-dollar joint venture with global sports icon and undefeated UFC champion Khabib Nurmagomedov (29-0) to create a first-of-its-kind regulated ecosystem connecting global finance, sports and technology.

The partnership will culminate in the creation of a multi-billion-dollar joint venture, MultiBank Khabib LLC, uniting two global powerhouses: MultiBank Group, a leader in regulated financial excellence, and Khabib Nurmagomedov, undefeated in the octagon and whose influence extends far beyond sport. The company will operate from MultiBank Group’s headquarters in Dubai, building a worldwide network of high-end sports ventures and real-world digital assets. This structure fulfills the vision of MultiBank Group Founder and Chairman, Naser Taher, for an exclusive global joint venture, granting MultiBank exclusive rights to develop and promote projects under the Khabib Nurmagomedov brand name, including the development of 30 state of the art Khabib gyms, Gameplan and Eagle FC brands.

The entire venture is backed by MultiBank Group’s regulated digital ecosystem and powered by its cornerstone $MBG Token being the driving force behind its expanding portfolio of real-world-asset (RWA) technologies and initiatives.

 Naser Taher, Founder and Chairman of MultiBank Group, stated: “From the UAE, we are shaping a new blueprint for the business of sport through the regulated tokenization of real-world sports assets (RWSA). Together with Khabib Nurmagomedov, and powered by our ecosystem token, $MBG, we are uniting finance and athletics into a single transparent, technology-driven ecosystem — one built on trust, innovation, and the strength of the MultiBank framework. This initiative proudly aligns with the UAE’s vision of becoming a global hub for digital asset innovation and world-class sports.

Khabib Nurmagomedov added: “This partnership with MultiBank Group is built on shared values of strength, respect, and discipline. Together with Multibank, we are building real global opportunities that go beyond sport, empowering athletes, and fans through a regulated and innovative digital ecosystem. This is only the beginning.”

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Edenred UAE strengthens market leadership with financially inclusive payroll solutions, C3Pay serving 2.5 million users

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Edenred, a leading digital platform for services and specific purpose payments and the undisputed market leader in salary processing and financial inclusion for the underbanked in the UAE, continues to reinforce its leading position in payroll card solutions, value-added financial services, and compliance-first innovation under the leadership of newly appointed Managing Director Claudio Di Zanni.

As the first company authorised by the Central Bank of the UAE to process WPS salaries, Edenred UAE has long positioned financial inclusion as the foundation of its offer in UAE — ensuring that access to financial services isn’t an added benefit, but a guaranteed outcome of getting paid. 

Trusted by both large enterprises and a growing base of SMEs, the backbone of the UAE economy, Edenred UAE now serves more than 15,000 corporate clients, 2.5 million cardholders, and partners with over 10 banks and 20 financial institutions. Demand has been strong in sectors such as manufacturing, construction, and facility management—where reliability and seamless execution are critical.

Edenred UAE salary cards, C3Pay, powered by RAKBANK and part of the Mastercard network, can be used globally. A key driver of Edenred’s adoption success is its unmatched expertise in on-site training at worker accommodations, which helps large enterprises efficiently onboard thousands of employees. This ensures that workers understand how to activate their cards, utilise app features, and engage with key financial tools.

Claudio Di Zanni, Managing Director, Edenred Middle East, said: “Edenred UAE has set the benchmark for payroll and financial access in the region with digital innovative solutions, great ambitions and internationally committed teams. Our ambition now is to extend that lead by deepening trust with our clients, scaling services that matter to end users, and ensuring full compliance in a fast-evolving regulatory landscape. With unmatched reach, an expanding client base, and a proven model for financial inclusion, we are ready to shape the next phase of the region’s salary card ecosystem — developing its full potential and contributing to giving workers who were previously excluded from the financial system a secure, transparent, and dignified way to manage their money.

Edenred UAE remains the reference in payroll solutions, as it continues to scale high-impact services, deepen banking partnerships, and reinforce its role as the benchmark for secure, compliant, and ethical financial access in the UAE and beyond. With a sharpened focus on innovation and strengthened leadership, it is entering a new chapter of platform excellence as the backbone of financial access for the UAE’s workforce.

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Dhruva urges UAE firms to focus on data sovereignty in e-Invoicing transition

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The 2026 mandate is an opportunity for businesses to align compliance with stronger data governance standards

With the UAE’s mandatory eInvoicing framework set to launch in 2026, Dhruva urges taxpayers to move beyond data residency considerations and focus on the critical issue of data sovereignty when selecting accredited service providers (ASPs). When adopting any cloud solution, it’s crucial to take the UAE National Cloud Security Policy into consideration, which provides a comprehensive checklist for cloud customers. This policy details necessary arrangements with cloud service providers, outlines contract requirements and sets cloud security requirements and enforcement measures.Dhruva is a leading tax advisory firm specializing in VAT, corporate tax, transfer pricing, and international taxation in the Middle East.

The eInvoicing rollout, based on the OpenPeppol five-corner model, will route all business-to-business (B2B) and business-to-government (B2G) invoices through ASPs that validate, exchange, and report tax-relevant data directly to the Federal Tax Authority (FTA). This shift makes the question of where data lives and who ultimately controls it – a matter of legal, operational, and financial consequence.

Commenting on the development, Nimish Goel, Partner and Head of GCC, Dhruva Consultants, said: “Businesses cannot afford to mix data residency with sovereignty. Hosting tax data within UAE data centres is necessary, but it does not, by itself, guarantee compliance or protection. True sovereignty means that encryption keys, administrative controls, and audit logs remain fully under UAE jurisdiction and cannot be accessed by foreign authorities. For taxpayers, this distinction is not technical—it is a fundamental risk-management decision.”

Dhruva highlights that this distinction is becoming urgent for three reasons. First, the UAE has enacted a robust Federal Data Protection Law (PDPL) and sector-specific rules that demand explicit safeguards on cross-border data flows. Second, with eInvoicing deadlines approaching, taxpayers must evaluate how each provider’s hosting model aligns with UAE data hosting requirements, sovereignty and National Cloud Security Policy laws. Finally, the operational reality is that migrating data and applications between clouds is not seamless. Factors such as data gravity, proprietary platforms, and audit trail integrity make switching providers slow, risky, and expensive.

“E-invoicing will not only redefine how businesses transact with government authorities, but also how they safeguard their most sensitive tax and financial records,” Goel added. “Companies need to recognise that the choice of ASP is a long-term strategic decision. The location of the cloud operator, the jurisdiction under which they fall, and the location of their control plane and encryption keys all impact compliance and data security far more than the physical location of the server rack.”

Dhruva advises taxpayers to approach ASP selection with a structured due-diligence process aligned with the policy for cloud customers in the UAE. This policy covers key domains such as governance, data location and sovereignty, interoperability, security incident and access management, data confidentiality, architecture and infrastructure companies should ensure that all storage, backups, and logs are held within UAE borders, that operational control and key management remain in UAE jurisdiction, and that providers comply with the UAE’s Peppol interoperability standard. Audit logs should be immutable, recovery sites must be located in the country, and exit strategies need to be documented and tested, with transparency on egress costs.

“Taxpayers cannot treat this as a simple IT procurement,” Goel emphasized. “It is a compliance and sovereignty choice that will determine their risk exposure for years to come. The time to ask these questions is now—before companies find themselves locked into providers that may not meet their future regulatory and operational needs.”

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