Financial News
RAKBANK Achieves Record Half-Yearly Net Profit of AED 901M, Marking a Remarkable 71% Year-on-Year Increase.
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 |
Financial
Pay10 Announces Strategic Partnerships at Dubai FinTech Summit 2026, Advancing the UAE’s Digital Payments Ecosystem
Pay10, a UAE-regulated financial technology company, today announced a series of strategic partnerships, commercial agreements and Memoranda of Understanding (MoUs) at Dubai FinTech Summit 2026. The announcements mark a step towards expanding digital payment choices and supporting the UAE’s transition towards real-time, interoperable and account-based payments, in alignment with the Central Bank of the UAE’s Financial Infrastructure Transformation (FIT) Programme.
Pay10’s partnerships with leading brands, including GEMS, Jumbo Electronics, Bikanervala, Allday, Just Gold and Save In Gold, span education, retail, food and beverage and specialised commerce. With live deployments already in place at GEMS, Bikanervala, Allday and Just Gold, Pay10 is extending its payment ecosystem across everyday consumer and business transactions.
Building a Connected Payments Ecosystem
Pay10 brings together instant payments, Open Finance, digital accounts, domestic card infrastructure and merchant payment acceptance through an integrated platform.
Directly integrated with Aani, Pay10 enables instant payments and supports account-based payment experiences. Its Open Finance capabilities allow consumers to securely connect supported bank accounts, access consolidated financial information and monitor spending through one application. Its Jaywan issuance capabilities also enable eligible wallet customers to access domestic card payments across POS terminals, ATMs and e-commerce channels.
For merchants, the platform offers multiple payment acceptance options, including Pay by Pay10, Pay by Bank, card acceptance, interoperable QR payments, payment links and digital payouts. Its proprietary POS application, QR and soundbox solutions are supported by an in-house Terminal Management System.
Through supported account-based payment methods, merchants can access funds in real time, helping improve cash flow and reduce payment acceptance costs, with potential savings of up to 70% in applicable use cases. Pay10 also reports transaction success rates of over 90% across its integrated technology infrastructure.
Strategic Partnerships and Collaborations
The partnerships with GEMS and Jumbo Electronics aim to expand digital payment choices and improve collection efficiency across education and consumer retail. Existing deployments with GEMS, Bikanervala, Allday and Just Gold demonstrate the application of Pay10’s payment solutions across different commercial environments.
Allday, a leading convenience chain in the region, presents an opportunity to explore the impact of digital payment solutions across high-frequency, small-value transactions.
Pay10 also announced several MoUs to explore emerging financial use cases. Its partnership with Yalla Financial Solutions, part of Fintra Holding, will explore bank-account-based wallet funding through Open Finance.
Additionally, our collaboration with TotalPay will enable TotalPay to access Pay10’s merchant payment acceptance capabilities through its technology platform and integrations. The partnership aims to expand merchant payment choices and simplify the adoption of emerging payment solutions.
Dr. Waleed Sadek, Founder & CEO of Yalla Financial Solutions, said: “We are pleased to explore this strategic collaboration with Pay10, reflecting our shared vision of building a more connected and accessible financial ecosystem. Through Open Finance and account-based wallet funding, we aim to unlock new opportunities for seamless digital payments and enhance the financial experience for businesses and consumers across the region.”
Supporting the UAE’s Financial Infrastructure
Pay10’s strategy aligns with the Central Bank of the UAE’s FIT Programme through the adoption of domestic payment infrastructure, including Aani, Jaywan and Open Finance. By investing in direct infrastructure connectivity and proprietary technology, the company aims to support greater interoperability, financial inclusion and more efficient payment experiences.
Harry Gill, Founder & Chairman, Pay10, said: “The UAE has laid the foundations for the future of finance, and our goal is to make it accessible to everyone. Pay10 is building a UAE-based alternative payment ecosystem that brings together domestic payment infrastructure, Open Finance, accounts, cards and merchant solutions. Our partnerships with GEMS, Jumbo Electronics, Bikanervala, Allday and Just Gold reflect growing confidence in this vision. We remain committed to advancing the UAE’s financial ambitions through a connected, interoperable ecosystem built to scale globally.”
Our collaboration with TotalPay will enable it to access Pay10’s payment acceptance capabilities for merchants through TotalPay’s technology platform and integrations. The partnership aims to expand merchant payment choices and simplify the adoption of emerging payment solutions.
With further agreements, product launches and integrations in development, Pay10 aims to expand its consumer and merchant capabilities across the UAE and international markets.
Financial
Henry Dannell Expands into the Middle East with Launch of DIFC Representative Office
Henry Dannell, a specialist cross-border credit adviser, has announced its expansion into the Middle East with the opening of a representative office in Dubai International Financial Centre (DIFC), marking a significant milestone in the firm’s international growth strategy.
The move reflects rising demand for specialist advice among internationally mobile individuals whose financial interests increasingly span multiple jurisdictions, asset classes, and lending structures. As Dubai continues to strengthen its position as a global wealth and investment hub, attracting entrepreneurs, family offices, investors, and high-net-worth individuals from around the world, the complexity of managing wealth across borders has increased significantly. Many of these individuals now live, work, invest, and hold assets internationally, creating borrowing requirements that often extend beyond conventional lending frameworks.
Henry Dannell’s expansion into Dubai is designed to bring the firm’s specialist expertise closer to the region’s growing network of wealth advisers, family offices, tax specialists, legal professionals, and internationally connected clients.
Founded in 2019, Henry Dannell has built a reputation for delivering bespoke credit and lending solutions for clients with highly sophisticated financial circumstances. The firm’s advisers support a broad spectrum of clients, from business owners and entrepreneurs to ultra-high-net-worth individuals, helping them navigate complex borrowing scenarios that frequently involve multiple jurisdictions, unconventional income structures, and international assets. Unlike traditional mortgage providers, Henry Dannell operates as a specialist advisory business focused on structuring tailored credit solutions and working alongside trusted professional advisers to address complex financing requirements.
The establishment of the DIFC representative office represents the first phase of the company’s broader regional growth ambitions and will serve as a hub for relationship-building, market engagement, and collaboration with professional advisory communities across the Middle East.
Kem Kemal, CEO and Co-Founder of Henry Dannell, said: “Over the last decade, we have seen a fundamental shift in how wealth is created, managed, and deployed. Successful individuals are increasingly global in their outlook. They may operate businesses in one country, hold investments in another, and seek opportunities across several markets simultaneously. Yet lending has not always evolved at the same pace.”
He explained that too often, highly accomplished individuals with substantial assets and strong financial positions encounter challenges because their circumstances fall outside conventional frameworks. “Our role is to understand the complete picture and design bespoke solutions that reflect the realities of modern international wealth.”
“Dubai has become one of the most important centers for global capital, entrepreneurship and wealth advisory services,” he added. “Establishing a presence within DIFC allows us to be closer to the professional advisers and internationally connected clients we serve, while strengthening relationships across a region that continues to play an increasingly influential role in global finance.”
With over 165 years of combined industry experience across its advisory team, Henry Dannell has developed specialist expertise across residential, commercial, and specialist lending transactions. Through its Dubai presence, Henry Dannell aims to deepen engagement with the region’s professional advisory ecosystem while contributing to discussions around international wealth, investment, and cross-border financial planning.
Financial
The UAE’s Net Wealth Reaches $3.6 Trillion in 2025 and is Expected to Approach $6 Trillion by 2030, BCG Report Finds
The UAE’s net wealth grew by 12.7% between 2024 and 2025, rising from $3.2 trillion to $3.6 trillion, according to Boston Consulting Group’s (BCG) Global Wealth Report 2026: The Great Reordering. Total Net wealth is forecast to reach $6 trillion by 2030, with a CAGR of 10.6%. This represents an increase of more than $2.3 trillion over the next five years. The projected growth points to the UAE’s long-term wealth creation potential.
Financial wealth, including both investable and non-investable wealth, grew by 12.3% between 2024 and 2025, rising from $1.2 trillion to $1.4 trillion and is set to rise to $2.1 trillion by 2030 at a CAGR of 8.7%. Real assets reached $2.4 trillion in 2025 from $2.2 trillion in 2024, with projected growth to $4.2 trillion by 2030.
The findings show the resilience of the UAE wealth market amid a volatile global environment and heightened geopolitical uncertainty. “The ongoing conflict has introduced short-term volatility across Middle Eastern markets, with investor sentiment shaped by geopolitical uncertainty and oil-price movements,” said Lukasz Rey, Managing Director and Partner at BCG. “However, the region’s wealth development story remains structurally resilient over the five-year projection horizon. While we anticipate slightly lower growth over the next one to two years, a rebound is expected toward the latter part of the decade, supported by sovereign wealth strength, economic diversification agendas, family-business liquidity events, and continued private capital activity. We expect wealth managers to remain cautious in the near term; however, the long-term wealth opportunity in the Middle East remains intact.”
The report identifies a broader reordering underway across the global wealth-management industry, spanning geographic shifts, emerging-market wealth creation, intergenerational succession, and AI-driven operating model transformation.
Shifting Wealth Concentration Across UAE Population Segments
According to the report, the UAE’s financial wealth remains concentrated among high-net-worth individuals, with the composition of wealth expected to evolve by 2030 as more wealth accumulates within the lower high-net-worth segment. There are approximately 500 ultra-high-net-worth (UHNW) individuals, those with more than US$100 million in assets, in 2025, and they are expected to increase to around 800 by 2030, while their share of total financial wealth rises marginally from 26.3% to 26.5%. The upper high-net-worth segment (US$20–100 million) is forecasted to grow from approximately 2.7K to 4.2K individuals, with its share of wealth broadly stable at 7.4% in 2025 to 7.6% in 2030.
In contrast, the lower high-net-worth segment (US$1–20 million), which comprises approximately 200K individuals, is expected to increase its share of financial wealth from 29.3% in 2025 to 31.5% in 2030. The affluent segment (US$0.25–1 million) is expected to expand from approximately 500K to 600K individuals in 2030, while its share of wealth declines from 15.5% to 14.6% as wealth disperses across a larger base. The mass segment (below US$0.25 million) remains the largest by population, growing from roughly 8.6M to 9M individuals, but its share of financial wealth decreases from 21.5% to 19.8%.
The key UAE findings of BCG’s proprietary analysis are:
- Financial wealth reaches $1.4 trillion in 2025, with strong projected growth to $2.1 trillion by 2030 (CAGR: 8.7%)
- Real assets rose to $2.4 trillion in 2025 and are expected to hit $4.2 trillion by 2030 (CAGR: 11.5%)
- Liabilities climbed to $220 billion in 2025 from $210 billion in 2024, with projections indicating $340 billion by 2030 (CAGR: 8.9%)
- Cross-border financial wealth belonging to UAE residents and booked outside the UAE surged by 9.4% between 2024 and 2025 in the UAE, reaching $468.4 billion. It is forecasted to grow to $678.2 billion by 2030 with a CAGR of 7.7%.
- Separately, the UAE continues to strengthen its position as a global wealth booking center, with cross-border wealth belonging to international clients and booked in the country reaching $721 billion in 2025, up 11.1% year-on-year.
- Currency & Deposits, valued at $471.8 billion in 2025, is projected to grow to $778.9 billion by 2030, with a CAGR of 10.5%
- Bonds are expected to reach $27.8 billion by 2030 from $15.9 billion in 2025, with a CAGR of 11.8%
- Equities, valued at $419.4 billion in 2025, are expected to reach $591.9 billion by 2030 at a CAGR of 7.1%
- Life Insurance & Pensions are valued at $26.6 billion in 2025 and projected to grow to $48.4 billion by 2030 (CAGR: 12.7%)
AI Is Reshaping the Economics of Wealth Management
BCG’s report finds that AI is beginning to reshape wealth-management economics and operating models. AI-powered tools are already drafting financial plans, automating compliance documentation, generating portfolio rationales, and predicting client churn. According to BCG analysis, AI-first wealth managers could unlock 25%–30% capacity gains across key workflows while increasing revenue per advisor by 15%–20%. The report argues that the industry is approaching a structural divide between firms redesigning workflows around AI agents and those layering AI tools onto legacy processes.
“The UAE’s wealth pool is set to grow by more than $2 trillion over the next five years, and the constraint on capturing that growth is advisor capacity rather than client demand,” said Mohammad Khan, Managing Director and Partner at BCG. “Firms that are redesigning their workflows around AI agents are creating the headroom to serve a larger client base without diluting the quality of advice. Those layering AI onto legacy processes are paying for the technology without changing their economics, and that gap widens the longer it is left.”
Wealth managers face a choice between adapting incrementally and committing to an AI-first future, with the report identifying the latter as the more sustainable approach. Key priorities include:
- Map value chain exposure: Identify rules-based, templatized processes most vulnerable to automation. Distinguish truly bespoke, relationship-dependent work from structured, repeatable tasks to guide investment decisions.
- Attack high-cost workflows: Scale AI now in financial planning, portfolio management, and compliance, automated drafting, AI-generated rationales, knowledge assistants.
- Rebuild the advisor experience around AI: Integrate next-best-action prompts, retention alerts, automated documentation, and personalized outreach into a unified system.
- Encode institutional knowledge into agents: Pair top practitioners with engineers to build and refine AI agents. Embed advisor judgment into today’s agents, without centralized ownership and outcome-based evaluation, differentiation erodes.
- Prepare the tech stack for agents. Introduce a decoupled data layer separating operational systems from data consumption, delivering real-time, API-accessible data while maintaining deterministic control through transaction systems and rules engines.
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