RAKBANK said its full-year profit before tax rose to AED 2.3 billion, up 27% year-on-year (YoY), supported by the highest-ever income of AED 4.7 billion, up 7% year YoY, with the total customer loans and advances surpassing AED50 billion, up 19% year on year.
Profit after tax hit a record AED 2.1 billion, up 16% year on year.
The increase in profit before tax by AED 480.6 million was mainly due to an increase in net interest income and net income from Islamic financing by AED 225.7 million, non-interest income by AED 82.6 million, decrease in net impairment charge by AED 229.5 million partly offset by an increase in operating expenses by AED 57.2 million.
Gross interest income and income from Islamic financing increased by AED 664.9 million, which was offset by an increase in interest expense and distributions to depositors by AED 439.2 million, resulting in an increase in net interest income and net income from Islamic financing of AED 225.7 million.
Total assets increased by 19.4% to AED 88.3 billion compared to 2023, driven by an increase in gross loans and advances by AED 8.1 billion, investments by AED 3.4 billion, and cash and balance with UAE central bank by AED 3 billion.
Wholesale banking and financial institutions lending increased by AED 4.2 billion, retail banking lending by AED 3.2 billion and business banking lending by AED 0.7 billion, respectively, compared to the previous year.
Operating income rose by 7% YoY, supported by a net interest margin of 4.5%, on the back of a well-diversified asset growth stable and loyal CASA customer base, augmented by higher non-interest income.
Operating expenses at AED 1.7 billion, increasing YoY by 3.6%, with cost to income ratio (CIR) at 35.2% compared to 36.4% for the previous year, as the bank continues to scale the business and deliver operational efficiencies through investment in technology and strategic cost management initiatives.
Gross loans and advances at AED 50.3 billion as at December 31, 2024, up 19.2% YoY, driven by growth across all segments, with wholesale banking and business banking loans and advances growing by 35% and 7.5% YoY, respectively, in line with the bank’s diversification strategy.
Customer deposits at AED 59.6 billion grew 18.4% YoY, with a CASA ratio of 62.7%, remaining one of the highest in the industry.
