RAKBANK posts record Q1 profit of Dh1 billion on strong lending, one-off gains

Dubai: The National Bank of Ras Al Khaimah (RAKBANK) reported a record quarterly profit after tax of Dh1 billion for the first quarter of 2026, marking a 43% increase year-on-year, driven by strong balance sheet growth and a one-off gain from a business divestment.

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The earnings were supported by a gain of Dh473 million from the sale of its merchant acquiring business, alongside what the bank described as an industry-leading net interest margin of 4.0% and a CASA ratio of 65.6%.

Total assets rose 18% year-on-year to Dh107.3 billion, while customer deposits increased 22% to Dh74.3 billion, reflecting continued business momentum across corporate, SME and retail segments.

The bank said liquidity remained strong, with an eligible liquid assets ratio of 17.7%, as it continued to support customers amid short-term disruptions while maintaining focus on long-term growth.

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Asset quality improved over the period, with the impaired loans ratio declining to 1.9% from 2.4% a year earlier. Provision coverage stood at 277%, among the highest in the sector, indicating what the bank described as prudent risk management and disciplined underwriting.

Capital adequacy was reported at 18.7%, remaining well above regulatory requirements. Profitability metrics also strengthened, with return on common equity rising to 29.9% from 22.4% a year earlier, while return on assets increased to 3.9% from 3.2%, supported in part by the divestment.

The lender said it remains positioned for further growth, citing strong capital, liquidity and continued expansion across its core banking segments.