RAKBank plugged into some record profit growth in 2022

RAKBank plugged into some record profit growth in 2022

The UAE’s RAKBank showcased a stellar performance last year, with a growth rate of 53.4 per cent - and the highest annual net profit growth since 2008. The bank offers conventional and Sharia-compliant services to retail, commercial and small businesses through a network of 27 branches and and through web and mobile banking channels. With a market cap of Dh8.4 billion, RAKBank’s net income from Islamic financing increased 14.8 per cent year-on-year to Dh2.48 billion. There was a 26.1 per cent year-over-year rise in interest income from conventional loans and investments. Despite operating expenses being higher by Dh88.8 millionr, on a cost-to-revenue basis, the ratio actually decreased from 43.2 per cent in 2021 to 43.0% in 2021. The total impairment provision dropped to Dh804 million against Dh1.07 billion in 2021, which is attributable to a well-rounded portfolio and UAE’s healthy macroeconomic conditions. The gross loans and advances increased 7.6 per cent, while net credit losses to average loans and advances dropped to 2.1 per cent from 3.1 per cent. As a result, the Group’s net profit surged to Dh1.163 billion, representing growth of 53.4 per cent year-on-year. RAKBank raised its total assets 1.5 per cent to Dh66.5 billion, through an