RAKBANK more than doubles net profit to Dhs450m in Q1 2023

RAKBANK more than doubles net profit to Dhs450m in Q1 2023

Delivered a net profit increase of 105 per cent for Q1 2023. The results were bolstered by robust and diversified growth on both sides of the balance sheet, underpinned by strong sales momentum and lower cost of funds. The bank’s total income performance was supported by a strong net interest income of Dhs788.8m, up 46 per cent year-on-year (YoY). Net interest margins increased to 4.9 per cent against 3.8 per cent (achieved in Q1 2022). The quarter’s non-interest income of Dhs284.4m, was up 52.5 per cent YoY. The growth was driven by higher forex and derivative income. Gross loans and advances were at Dhs38.7bn, reflecting a 1.4 per cent increase compared to December 31, 2022 on the back of a changing balance sheet mix in line with the strategic direction of the bank. Customer deposits stood at Dhs46.4bn, an increase of 3.3 per cent compared to December 31, 2022. RAKBANK also reported a strong current and saving account (CASA) franchise with a CASA ratio of 70.5 per cent. The cost of risk remained low due to the bank’s diverse business mix and resilient UAE economic environment, leading to a 30.9 per cent reduction in impairments as against Q4 2022. Impaired