The National Bank of Ras Al Khaimah

1. Company Overview & Earnings Context

RAKBANK delivered a record H1 2026 financial performance, reporting record Profit Before Tax of AED 1.9 billion and Profit After Tax of AED 1.7 billion. The Bank attributed its strong performance to resilient balance sheet growth, diversified earnings, disciplined execution across all business segments, and the AED 473 million gain from the sale of its merchant acquiring business. During the period, RAKBANK also celebrated its 50th anniversary while continuing to invest in AI, digital banking, and customer experience under its "Digital with a Human Touch" strategy.

2. Financial Performance Snapshot

• Operating Income: AED 3.13B (+21.5% YoY)

• Net Interest Income: AED 1.87B (+5.1% YoY)

• Non-Interest Income: AED 1.26B (+58.4% YoY)

• Operating Profit: AED 2.21B (+31.5% YoY)

• Net Impairment Charge: AED 329M (+90.3% YoY)

• Profit Before Tax: AED 1.88B (+24.7% YoY)

• Profit After Tax: AED 1.71B (+24.7% YoY)

Compared with H1 2025:

• Operating income increased from AED 2.57B to AED 3.13B.

• Profit before tax increased from AED 1.51B to AED 1.88B.

• Profit after tax increased from AED 1.37B to AED 1.71B.

3. Operational Highlights & Key Metrics

• Total Assets: AED 108.6B (+14.4% YoY)

• Gross Loans & Advances: AED 60.8B (+18.7% YoY)

• Customer Deposits: AED 75.1B (+23.0% YoY)

• Return on Equity (ROE): 25.2%

• Return on Assets (ROA): 3.2%

• Net Interest Margin (NIM): 3.9%

• Cost-to-Income Ratio: 29.3%

• Impaired Loans Ratio: 1.8%

• Capital Adequacy Ratio (CAR): 19.3%

• CASA Ratio: 64.3%

• Stage 3 Coverage Ratio: 85.9%

• Eligible Liquid Asset Ratio (ELAR): 13.0%

The Bank maintained strong capital, liquidity and funding, supported by broad-based loan and deposit growth across Personal, Business and Wholesale Banking segments.

4. Key Performance Drivers

RAKBANK's earnings were supported by continued business momentum and a more diversified revenue base. Net interest income grew on the back of higher earning assets, while non-interest income surged 58% due to higher foreign exchange volumes, stronger fees and commissions, and the gain from the sale of its merchant acquiring business. Despite continued investment in technology, data and customer experience, operating efficiency improved significantly, with the cost-to-income ratio declining to 29.3%. Asset quality also strengthened as the impaired loans ratio improved to 1.8%, supported by disciplined underwriting and prudent risk management.

5. Outlook & Forward Guidance

Management stated that the Bank enters the second half of 2026 with confidence, supported by a strong balance sheet, resilient asset quality, ample liquidity and a diversified business model. RAKBANK intends to continue investing in artificial intelligence, digital capabilities and customer experience while supporting SMEs, entrepreneurs and corporate clients across the UAE economy. Management expects to remain selective and agile while executing its long-term growth strategy.

6. Investor Takeaway

RAKBANK delivered another record half-year performance, driven by strong loan and deposit growth, rising profitability and continued revenue diversification. The Bank maintained excellent returns on equity, robust capital and improving asset quality while investing heavily in digital transformation and AI. Supported by a fortress balance sheet and strong liquidity, RAKBANK appears well positioned to continue executing its long-term growth strategy while serving both retail and business customers across the UAE.