Q3 2025 Financial Results

Q3 2025 Financial Results | RAKBANK UAE

Q3 2025

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Press Release

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24/10/2025
<h4>Record YTD profit before tax of AED 2.3B, up 23% YoY</h4>
Ras Al Khaimah, United Arab Emirates, October 24, 2025 - The National Bank of Ras Al Khaimah &nbsp;(RAKBANK) today reported its financial results for the nine months of 2025
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&bull; All variances are YoY
Record breaking growth in profitability continues...&nbsp;
YTD performance supported by net interest margin of 4.3%, an industry leading CASA ratio of 66%, and a 32% YoY growth in non-interest income driven by wealth management, FX and trading momentum
&nbsp;
...driven by product innovation &amp; balance sheet growth
The Bank&rsquo;s balance sheet grew by AED 16B YoY with Loans &amp; Advances growing by 10% YoY to AED 54B, deposits growing by 15% and launch of new products like crypto brokerage and escrow services
&nbsp;
...with robust credit quality and capital adequacy
Impairment loan ratio has improved further to 1.7% from 2.2% for same period last year and CAR ratio remains at 19.6%, well above regulatory requirements
&nbsp;
&hellip;and outstanding shareholder returns
Shareholder returns improved further with return on equity at 21.9% (up from 20.5%) and return on assets at 3.0% (up from 2.9%) for 9M' 24
&nbsp;
<img src="/contentassets/f6a3aa951dfa4a328750f1f7b65643bf/raheel-ceo.png" alt="CEO RAKBANK" width="209" height="209" />
Raheel Ahmed, Group Chief Executive&nbsp;Officer, RAKBANK said: As RAKBANK delivers on its strategy to become &lsquo;digital with a human touch&rsquo;, this vision is translating into tangible results and a number of significant firsts. &nbsp;
In the first nine months of 2025, RAKBANK delivered a profit before tax of AED 2.3B, an increase of 23% YoY driven by higher non-interest income, which contributed upwards of 30% of total income, and a sustainable margin on a consistently growing balance sheet. These results highlight RAKBANK&rsquo;s diversified income model and its long-term commitment to creating value for customers, shareholders, and the broader economy. The third quarter marked several milestones. In Retail Banking, our active customer base grew by 12% YoY, accompanied by double digit growth on the liabilities book. Our credit card acquisition volumes are up by 70%, making RAKBANK one of the top banks in credit cards in UAE. We continue to invest in our Elite Customer Centers serving HNWI, supported by a record 34% growth in wealth management income. Within Wholesale Banking, we successfully booked our first bilateral aircraft finance deal with Flydubai, reinforcing our ability to serve complex client needs across sectors. While unfunded trade volumes doubled year on year, reflecting growing client engagement and healthy market demand. We launched our DCM business to support clients in meeting their funding needs, acting as Joint Lead Manager on key transactions in the real estate and financial sectors. Within Financial Institutions, we continued to build momentum, securing mandates across Europe and Africa and serving as coordinator on syndicated loans.
As the go-to bank for SMEs, we opened more than 17K new accounts and disbursed AED 1.6B in business loans this year, helping our customers grow and scale with confidence.
Additionally, we granted AED 1.5B in credit limits to customers seeking sustainable working capital solutions. The Business Banking balance sheet has reached new milestones with the deposit book crossing AED 25B and advances book crossing &nbsp;AED 11B. The launch of Season 3 of the SME Souk podcast has also deepened our engagement with the business community, providing practical insights, market trends, and stories that strengthen our role as a trusted partner for SMEs in the UAE.
RAKBANK also launched its crypto brokerage service via its mobile app for retail customers, becoming the first conventional bank in the UAE to enable crypto trading services for its customers. Our customers can buy, sell, and swap cryptocurrencies in AED by accessing Bitpanda&rsquo;s crypto trading platform through RAKBANK&rsquo;s mobile banking app.
We continue to accelerate our investment in data, AI, and technology as key enablers of future growths. Between 2024 and 2025, technology CAPEX rose by 47%, a clear signal that we are investing with purpose to drive smarter operations, deeper insights, and more connected customer experiences. &nbsp;
Another first was making tangible progress in bringing AI into how we deliver awesome customer experiences. Our AI Digital Assistant in our app now supports over 270,000 active users, providing faster and more intuitive access to banking services.&nbsp;
Across the year, RAKBANK has been recognized with many industry awards including recognition as Bank of the Year at the Gulf Business Awards and Social Bond of the Year at the Asian Banking and Finance Awards, reflecting the collective efforts of our teams and the trust of our customers.
The global outlook remains mixed, with evolving US tariffs and shifting interest rate cut expectations adding uncertainty around global trade and growth. Despite these conditions, the UAE continues to demonstrate resilience, supported by steady non-oil expansion, consistent FDI inflows, and a clear focus on long-term sustainability.
As we look ahead, our priorities remain clear. We continue to stay guided by our north star of delivering awesome customer experiences, driving innovation, and continuing disciplined execution of our strategy to create sustainable value for all our stakeholders.&nbsp; &nbsp;
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Profitability growth driven by Non-Interest Income momentum and improvement in asset quality
Operating Income for the 9M&rsquo;25 amounted to AED 3.9B, a 10% increase vs 9M&rsquo;24. Operating Income for Q3&rsquo;25 was AED 1.3B, reflecting an increase of 10% YoY &ndash; the highest quarterly result to date. Net Interest Income increased by 2% compared to 9M&rsquo;24 due to growth in total assets of 19% YoY and a sustainable NIM. The NIM of 4.3% for the 9-month period of 2025 is supported by growth in CASA balances. Bank&rsquo;s Risk-Adjusted NIM for the 9M&rsquo;25 has improved by 23 bps to 3.6% compared to 3.4% in 9M&rsquo;24, as the credit quality of the Bank&rsquo;s portfolio improves. Non-Interest income reached AED 1.2B, increased by 32% from last year, driven by Bank&rsquo;s diversified income model, particularly &nbsp;due to growth in Fee, FX and Investment income. Net Impairment charge of AED 271M decreased by 46% compared to the same period last year and Impaired Loan ratio improved to 1.7% from 2.2%. Cost of Risk was at 0.7% for the 9M&rsquo;25 compared to 1.6% during the same period last year 
Total Balance Sheet reached AED 99.5B, nearing a milestone
Total Assets increased by AED 15.6B reflecting a growth of 19% compared to Sep&rsquo;24, with an increase in Gross Loans and Advances of AED 5B, Investments of AED 2.9B and Due from Banks of&nbsp; AED 5B. Wholesale Banking significantly contributed to the growth of the Balance Sheet, with segmental assets growing by AED 12.9B a 26% increase compared to Sep&rsquo;24. Business Banking loans and advances increased by AED 516M, a 4.8% growth compared to Sep&rsquo;24 of last year, primarily from SME and Commercial Loans. Personal Banking Loans and Advances were up by AED 1.9B to AED 24.4B, an 8.3% increase compared to last year with Mortgage and Expat loans driving growth, bringing in AED 1.4B and AED 443M year-over-year respectively. Bank&rsquo;s customer deposits increased by 15% against Sep&rsquo;24 and reached AED 65.6B, &nbsp;maintaining one of the industry&rsquo;s highest CASA ratios of 66%, &nbsp;serving as a testament to the trust our customers place in the RAKBANK franchise and our services 
Cash Flows
Cash and cash equivalents as at Sep&rsquo;25 stood at AED 11.9B increasing by AED 4B compared to Sep&rsquo;24. Net cash generated from operating activities for 9M&rsquo;25 was AED 1.5B, AED 1.1B was used in investing activities and AED 1.4B was received from financing activities. 
Impact of Capital Expenditure and developments
Capital Expenditure for 9M&rsquo;25 amounted to AED 194M compared to AED 155M for the same period last year, as the Bank continues to invest in technology and infrastructure. 
Ratings
RAKBANK is rated by leading rating agencies. These ratings reflect the institutional strength of the Bank that is backed by trust and transparency in financial reporting and disclosures. 
During the reporting period both Fitch and Moody&rsquo;s have reaffirmed their credit ratings while Moody&rsquo;s has also upgraded Bank&rsquo;s credit Outlook from &lsquo;Stable&rsquo; to &lsquo;Positive&rsquo; underscoring the Bank&rsquo;s strong track record of executing its transformation.
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<table class="rak-table">
<thead>
<tr>
<th>
Rating Agency
</th>
<th>
Last Update
</th>
<th>
Deposits
</th>
<th>
Outlook
</th>
</tr>
</thead>
<tbody>
<tr>
<td>
Moody&rsquo;s
</td>
<td>
March 2025
</td>
<td>
Baa1/ P-2
</td>
<td>
Positive
</td>
</tr>
<tr>
<td>
Fitch
</td>
<td>
March 2025
</td>
<td>
BBB+/F2
</td>
<td>
Stable
</td>
</tr>
<tr>
<td>
Capital Intelligence
</td>
<td>
August 2025
</td>
<td>
A/A1
</td>
<td>
Stable
</td>
</tr>
</tbody>
</table>
&nbsp;
Financial Highlights for&nbsp;YTD Sep&rsquo;25 
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1&nbsp; - Annualized 2 - After Application of prudential filter&nbsp; 3 - Net Interest Margin is calculated based on average interest earning assets; prior periods have also been restated
RAKBANK Awards &amp; Accolades for&nbsp; YTD Sep'25
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Raheel Ahmed Group Chief Executive Officer