RAKBANK has achieved a significant milestone in 2024 by surpassing a net profit of Dh2.1 billion, marking a 16% increase year-on-year. This success is attributed to a robust financial performance, with profit before tax reaching Dh2.3 billion, a 27% rise from the previous year. The bank’s total income for 2024 reached Dh4.7 billion, up 7% year-on-year, driven by diversified asset growth and enhanced non-interest income.
The bank’s assets grew by 19.4% to Dh88.3 billion, supported by a substantial increase in gross loans and advances, which exceeded Dh50 billion, up 19.2% year-on-year. Customer deposits also saw a significant rise, increasing by 18.4% to Dh59.6 billion, with a notable current and savings account (CASA) ratio of 62.7%. This robust growth reflects RAKBank’s strategic diversification and strong customer base.
RAKBANK’s financial health is further underscored by its improved credit quality, with a net impairment charge to average loans and advances ratio decreasing to 1.7% from 2.5% in the previous year. The bank remains well-capitalized, with a capital adequacy ratio (CAR) of 18.1% for FY’24. Shareholder returns were strong, with a return on equity (ROE) of 18.4% and return on assets (ROA) of 2.6%.
In the fourth quarter, RAKBank’s net profit after tax was Dh386 million, although this represented a decline of 10.4% year-on-year. Despite this, operating income increased by 3.7% year-on-year to Dh1.16 billion. The bank continues to focus on innovation and operational efficiency, positioning itself for sustained growth in the UAE’s thriving economy.
RAKBANK’s leadership remains optimistic about future prospects, emphasizing the bank’s commitment to investing in talent and technology to enhance customer experiences. As the UAE’s leading SME bank, RAKBank supported over 91,700 businesses in 2024, including 13,000 new entrepreneurs. This commitment aligns with the UAE’s economic vision and underscores RAKBank’s role as a key partner in national growth.
The bank’s strategic initiatives, such as issuing a Social Finance Bond to support SMEs and the healthcare sector, demonstrate its alignment with broader national goals. Overall, RAKBank’s performance in 2024 highlights its resilience and strategic growth, positioning it well for future challenges and opportunities in the financial sector.
