logo
Record growth continues, RAKBANK delivers AED 772M profit before tax despite increased global uncertainty

Record growth continues, RAKBANK delivers AED 772M profit before tax despite increased global uncertainty

Al Bawaba22-04-2025
The National Bank of Ras Al Khaimah (RAKBANK) today reported its financial results for first Quarter of 2025
Highlights - Q1 2025
All percentage variances are YoY
Key Financial Highlights – Q1 2025
Profit after tax of AED 704M for Q1'25 up 22.7% over Q1'24Operating Profit of AED 866M up 10.2% YoY on the back of strong growth in balance sheet and non-interest incomeOperating Expenses grew by 11.8% vs last year driven by continued investments in technology, data, people and customer experience. Cost to income ratio (CIR) at 33.4% vs. 33.1% for Q1'24Total Assets have crossed AED 90B for the first time in Bank's historyGross loans & advances surpassed AED 50B mark, reflecting a 16.7% YoY increase. Growth driven by all segments, with Wholesale Banking loans growing by 30.1% YoY, aligning with the bank's diversification strategyCustomer deposits reached AED 61.0B, up 18.2% YoY, with a CASA1 ratio of 65%, up 10.2% YoY, one of the highest in the industryPortfolio credit quality remains robust with cost of risk at 0.8% as against 1.5% during the same period last year, supported by a strategic shift in business mix towards secured, low risk assetsThe impaired loan ratio as at Q1'25 improved to 2.1% against 2.6% as at Q1'24 while 'Provisions to Gross Loans' ratio of 5.6% compared to 6.0% as of Q1'24, providing adequate coverageShareholder returns remained strong with Return on Equity (ROE) of 22.4% against 21.4% in Q1'24 and Return on Assets (ROA) of 3.2% against 3.1% in Q1'24The Bank remains well capitalized with capital adequacy ratio (CAR) at 18.6% for Q1'25 against 17.2% as at Q1'24Strong liquidity position is reflected by an Eligible Liquid Asset Ratio of 17.1% vs. 13.5% at Q1'24 and Advances to Stable Resources Ratio at 76.4% vs. 78.7% at Q1'24
1- Current Accounts and Savings Accounts to total Customer Deposits
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

du reports a stellar net profit expansion in Q2 2025 with a 25.1% year-over-year growth
du reports a stellar net profit expansion in Q2 2025 with a 25.1% year-over-year growth

Al Bawaba

time14 hours ago

  • Al Bawaba

du reports a stellar net profit expansion in Q2 2025 with a 25.1% year-over-year growth

Emirates Integrated Telecommunications Company PJSC (du) reported its financial results for the second quarter of 2025. Continuing the positive momentum established in the first quarter, our revenues increased by 8.6% year-over-year, reflecting strong performance across all business segments and solidifying our market position. EBITDA rose by 16.4% resulting in an EBITDA margin of 46.8%, a 3.1 percentage points improvement year-over-year, driven by our strategic focus on value-driven products and our disciplined cost operational excellence translated into an impressive net profit increase of 25.1%. In recognition of these strong financial results, the Board has approved an interim cash dividend of AED 0.24 per share, representing an increase of 20% year-over-year.Q2 2025 Highlights• Solid subscriber base growth with an increase of 10.8% in Mobile and 12.0% in Fixed, reflecting positive market dynamics and good level of customer acquisition• Strong market position with 8.6% revenue growth and solid performance across all business segments• Impressive bottom-line growth with EBITDA up 16.4% and margin improving by 3.1 pp to 46.8% resulting in net profit rising by 25.1%• 2025 guidance: 2025 Revenue growth of 6-8%, 2025 EBITDA margin: 45-47%• Upgraded full-year guidance supported by the strong performance achieved in the first half and highlighting confidence in the growth trajectory• Strategic investments in adjacent businesses to support future growth highlighted by:• Start of deployment of the hyperscale datacentre in partnership with Microsoft• Launch of the National Hypercloud platformMalek Al Malek, Chairman said: 'Our strong performance in the first half of 2025 reflects the effective delivery of our focused strategy, underpinned by a favourable economic environment and sustained commitment to business excellence. The Board is confident in management's customer-centric and agile approach, which reinforces du's leadership in driving innovation and adaptability. We take pride in our strategic initiatives that contribute to advance the UAE digital agenda, expanding our ICT capabilities and accelerating the digital transformation. Through partnerships with global technology leaders, we are enabling sovereign hyperscale cloud and AI services from UAE-based data centres—empowering a smarter, more connected future for the Emirates. We continue to ensure disciplined capital allocation and sustained long-term value creation for our shareholders. Reflecting our robust first-half results and continued confidence in du's future prospects, the Board has approved an interim dividend per share of 24 fils, underlining our enduring commitment to shareholder returns.'Fahad Al Hassawi, CEO commented: 'Our second quarter financial results showcased impressive performance, fuelled by the meticulous execution of our strategy and consistent growth across every aspect of our operations. We achieved double digit growth in both our Mobile and Fixed subscriber base, underscoring our market leadership and brand strength. We advanced our network coverage and enhanced our connectivity offering with the commercial rollout of 5G Advanced. Our fibre infrastructure also expanded significantly, supporting long-term demand for high-speed connectivity. We launched the UAE's first sovereign hyperscale cloud platform, the National Hypercloud, and made advances in deploying our hyperscale data centre in collaboration with Microsoft, positioning us at the forefront of secure, AI-ready digital operational achievements translated into strong financial performance underpinned by our disciplined approach to value creation and cost efficiency. The solid revenue growth of 8.6% year-over-year was coupled with strong profitability as EBITDA margins expanded by 3.1 percentage points to 46.8%, translating into a 25.1% increase in net profit. Our upgraded full-year guidance reflects the strong performance achieved in the first half of the year, our confidence in the resilience of our business model and our ability to deliver sustainable, profitable growth.'Customer base• In Q2 our Mobile customer base grew by 10.8% year-over-year, reaching 9.1 million subscribers, representing 893,000 net-additions year-over-year. Postpaid rose 9.8% year-over-year to 1.9 million customers supported by strong momentum in the enterprise segment. Prepaid grew by 11.1% to 7.3 million subscribers, reflecting the continuous success of the Alo brand among blue-collar workers and the expansion of retail presence in underserved areas, as well as a solid tourist activity.• In Q2 our Fixed customer base recorded a strong year-over-year growth of 12.0%, reaching 706,000 subscribers, with 76,000 net-additions over the past 12 months. This performance was driven by the continued success of our Home Wireless offering as well as sustained demand for fibre broadband services, reflecting our enhanced value proposition and our expanding Network. Q2 2025 Financial Highlights• Revenues surged by 8.6% year-over-year reaching AED 3.9 billion, marking strong performance across both service and non-service revenues. This strong performance underscores the continued momentum in our core business and the successful execution of our revenue diversification strategy.• Mobile revenues climbed by 7.7% year-over-year to AED 1.7 billion reflecting sustained growth in our customer base and the success of our targeted propositions and highly effective marketing campaigns. The optimized use of digital and retail channels also enhanced customer acquisition and engagement, further fuelling revenue momentum.• Fixed revenues rose by 10.1% year-over-year reaching AED 1.1 billion mainly driven by the ongoing expansion in Home Wireless and Fibre customer base. We witnessed encouraging traction in the SME segment, along with increased adoption of Office Wireless solutions-further cementing our position as a trusted partner for connectivity and productivity.• 'Other revenues' recorded an 8.8% year-over-year growth to AED 1.1 billion buoyed by higher inbound roaming and interconnection revenues—reflecting our expanded Mobile base, higher handset sale, and growth in ICT revenues in line with our strategic ambition to broaden revenue streams beyond traditional connectivity.• EBITDA grew by 16.4% to AED 1.8 billion, with the EBITDA margin improving by 3.1 points year-over-year to 46.8%. The uplift was fuelled by a stronger gross margin, mainly benefiting by a more favourable mix, with continued migration toward unlimited data plans. Our continued discipline around cost efficiency and collections also played a pivotal role in enhancing profitability.• Net Profit rose by 25.1% year-over-year to AED 727 million, delivering a Net Profit margin of 18.6%. This reflects the strength of our operational performance and a clear focus on value creation for our shareholders.• Capex reached AED 545 million (Q2 2024: AED 442 million), representing a capex intensity of 14.0% (Q2 2024 capex intensity of 12.3%). This increase reflects our commitment to scaling our data centre capabilities and supporting long-term digital infrastructure growth.• Operating free cash flow (EBITDA – Capex) rose by 13.8% to AED 1.3 billion, underpinned by strong EBITDA growth. This robust cash generation provides the financial flexibility to invest in future growth while maintaining attractive shareholder returns. Based on these results, the Board approved an interim dividend of AED 0.24 per share for the first half of the year, representing a 20% increase year-over-year and reflecting the strong financial performance and confidence in our outlook.

Ajman Bank Reports AED 266 Million in H1 2025 Profit Before Tax, Marking 14% Growth Driven by Core Performance and Operational Efficiency
Ajman Bank Reports AED 266 Million in H1 2025 Profit Before Tax, Marking 14% Growth Driven by Core Performance and Operational Efficiency

Al Bawaba

time3 days ago

  • Al Bawaba

Ajman Bank Reports AED 266 Million in H1 2025 Profit Before Tax, Marking 14% Growth Driven by Core Performance and Operational Efficiency

His Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of the Board of Ajman Bank, chaired the Bank's Board of Directors meeting on Tuesday to review key financial and administrative matters, and issue resolutions on commercial Bank announced a profit before tax of AED 266 million for the first half of 2025, a 14% increase compared to the same period in 2024, driven by sustained focus on core business performance, increased financing activity, and improved operational Bank delivered a Total Operating Income of AED 751 million, while net operating income reached AED 399 million. The Bank's total assets increased by 17% compared to year-end 2024 to AED 26.6 billion, supported by a 16% growth in the financing portfolio to AED 17.8 billion. Customer deposits reached AED 20 billion, up 11% year-to-date, reflecting continued growth across Consumer and Wholesale business segments. The Bank's total shareholders' equity rose to AED 3.2 billion, up 4% Highness Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman and Chairman of Ajman Bank, said: 'Ajman Bank continues to deliver consistent results, underpinned by a resilient business model and a focused growth strategy. Our performance in the first half of 2025 reflects disciplined execution and the Bank's growing role in supporting economic development and financial sector sustainability in the UAE'.Ajman Bank's capital and liquidity metrics remained strong, with a Capital Adequacy Ratio (CAR) of 17.3% and a Tier 1 Capital Ratio held firm at 16.1%, notwithstanding 17% growth in total financing portfolio. Return on Equity (ROE) improved to 15.6% (up by 29 bps), while Return on Assets (ROA) increased to 1.9% (up by 9 bps). Ajman Bank's further strengthened strong liquidity position achieved an improved Eligible Liquid Assets Ratio (ELAR) at 18% and Loans-to-Stable Resources Ratio (LSRR) at 74%.Mustafa Al Khalfawi, Chief Executive Officer of Ajman Bank, said:" Our first-half results demonstrate the strength of Ajman Bank's funding base, balance sheet, and operational model. We are focused on scaling platform productivity, improving cost-to-income performance, and diversifying access to capital. The successful launch of our co-branded POS solution, real-time settlement platform, and global Sukuk issuance all reflect growing confidence in our trajectory."On the back of proactive credit portfolio management, Asset quality continued to improve with the Non-Performing Loans (NPL) Ratio at 8.6% (down by 126 bps), 15% reduction in the aggregate of Gross Stage 2 & 3 exposure during H1 2025 and greater diversification achieved with the Real Estate Ratio reduced to 32.9% (down by 705 bps).The Bank continued to advance its digital infrastructure with targeted investment in SME onboarding platforms, merchant POS enablement, and real-time processing capabilities. These improvements are enhancing productivity, accelerating digital origination, and supporting end-to-end service automation across core May 2025, Ajman Bank successfully issued its debut USD 500 million 5-year Sukuk. The five-year issuance, listed on Nasdaq Dubai, achieved a 5.4X oversubscription, which also evidences the great trust of 100+ regional and international investors with participation of 65% and 35% allocation respectively. The Sukuk marks a strategic milestone in the Bank's funding diversification and access to international capital markets. Ajman Bank remains committed to its AED 4 billion 'Sustainable Finance' pledge by 2030 and 'Net Zero Emission' by 2050, aligning its long-term strategy with Ajman Vision 2030 and the UAE's broader sustainable growth framework.

Burgan Bank Honors Kuwait's Top-Ranking Graduates - Class of 2025 in Collaboration with the Ministry of Education
Burgan Bank Honors Kuwait's Top-Ranking Graduates - Class of 2025 in Collaboration with the Ministry of Education

Al Bawaba

time6 days ago

  • Al Bawaba

Burgan Bank Honors Kuwait's Top-Ranking Graduates - Class of 2025 in Collaboration with the Ministry of Education

Stemming from its firm belief in the importance of education as a core pillar of community building and sustainable development, Burgan Bank, in cooperation with the Ministry of Education, organized a special ceremony for honoring the nationwide top-achieving graduates 2025 in Kuwait, in recognition of their academic achievement and outstanding performance in both the science and arts sections and the special education schools affiliated with the Ministry. The ceremony was attended by Ms. Maryam Al-Enezi, Assistant Undersecretary for Educational Development and Activities at the Ministry of Education, alongside Mr. Fadel Abdullah, Chief Executive Officer – Kuwait at Burgan Bank, Mr. Naqeeb Amin, General Manager – Human Resources and Development for the Group at Burgan Bank, members of the Bank's top management, and the graduates' parents. The event was marked by a joyful atmosphere among the students and their families, in appreciation of the exceptional efforts they made during the 2025 academic year, which culminated in their excellence. The ceremony began with a welcoming speech by Mr. Fadel Abdullah, Ms. Maryam Al-Enezi, and Mr. Naqeeb Amin, followed by the official honoring of students who received symbolic trophies, and commemorative gifts. The students also contributed a few heartfelt words expressing their ambitions and future plans, amidst the encouragement and joy of the attendees for this achievement and excellence. Honoring Top Achievers and Outstanding Performers In a celebratory ceremony, the Bank recognized exceptional students from the science and arts departments, as well as high-achieving children of Burgan Bank employees. This meaningful gesture reflects the Bank's steadfast commitment, as a certified Great Place to Work®, to fostering a culture of recognition, inclusion, and appreciation. It also highlights its appreciation for its people and reinforces its aspiration to be an employer of choice—one that celebrates the accomplishments of its extended family and values the contributions of employees in shaping a knowledgeable and empowered generation. Further underscoring its commitment to its sustainability pillars and its dedication to supporting all youth without exception, the Bank honored the top-achieving students from the special education schools affiliated with the Ministry who have overcome personal and academic challenges to achieve excellence. Additionally, as part of Burgan Bank's vision and strategy to enhance employee competencies and invest in human capital, a select group of dedicated employees were honored at the ceremony for receiving their master's degree under the umbrella of the Kafa'a program and bachelor's degree as part of the Burgan Cares program, in recognition of their dedication to professional development. On this occasion, Mr. Fadel Abdullah congratulated the outstanding students on the impressive results they achieved during their academic year, expressing the Bank's pride in this achievement, which stands as the fruit of years of hard work and perseverance to bring honor to Kuwait. For her part, Ms. Al-Enezi, expressed the Ministry of Education's pride in this fruitful cooperation with Burgan Bank, emphasizing that the partnership between the public and private sectors sets an example for serving the community and advancing the education sector. She said: 'We thank Burgan Bank for organizing this wonderful ceremony for our top-achieving students in Kuwait. The support of Kuwaiti banking institutions for outstanding students reflects a sense of national responsibility and fosters an environment for excellence and progress. It also serves as a strong incentive for other students to follow in their footsteps. We appreciate this role, which supports and complements our efforts to establish a stimulating and productive educational environment.' Meanwhile, during his speech Mr. Naqeeb Amin stated: 'This honoring ceremony comes as an extension of the Bank's unwavering efforts to support education as a fundamental pillar for building prosperous societies,' noting that Burgan Bank, through its corporate social responsibility (CSR) and sustainability strategy, is committed to launching a wide range of initiatives that aim to enable youth in achieving their ambitions as well as contribute to preparing a distinguished generation capable of leading the future within various fields. He added: 'We also believe that empowering youth energies is a true investment in Kuwait's future. Through our effective partnerships with the government sector, we strive to support national development objectives and promote a culture of excellence and innovation among students.' Social Responsibility and Sustainability Principles Mr. Naqeeb Amin emphasized that this initiative falls within the Bank's social responsibility program and sustainability principles, empowering young national cadres, and supporting the education sector in line with the New Kuwait Vision 2035. He emphasized that top-achieving students are a national asset that must be invested in and provided with all necessary support and attention to prepare a cultured and promising generation for Kuwait's future. Throughout the year, the Bank welcomes school and university students as part of its professional training programs presented by a select group of the Bank's employees, designed to prepare young talents and help them understand the job market requirements they need to prepare for before graduating, enhancing their chances of employment as fresh graduates, which Mr. Naqeeb described as a national and social duty and a true investment in the future generation. Training the Top-Achievers As an extension of Burgan Bank's appreciation for the efforts of outstanding students and its commitment to empowering them with future skills, the Bank announced during the ceremony that it will organize an educational workshop dedicated to the honorees in cooperation with Coded Academy. The workshop, aims to focus on AI & coding, as well as motivating the younger generation to explore modern educational and technical opportunities that qualify them to enter various industries in the job market, including the banking industry. The workshop will also include awareness session about 'Let's Be Aware' (Diraya) campaign to foster a sound banking culture and financial awareness among students, as part of the Bank's commitment to supporting digital education, financial literacy, and developing future skills among Kuwaiti youth. In conclusion, everyone expressed their pride in the top-achieving students and wished them continued success in their academic and university journeys. Furthermore, Burgan Bank affirmed its ongoing commitment to adopting and supporting initiatives and partnerships that empower students and youth, while also emphasizing its steadfast investment in what contributes to the development of the education sector and the advancement of society in line with Kuwait Vision 2035.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store