RAKBank’s 26.1% Profit Growth in H1-2025 Boosts UAE Banking

The UAE’s banking sector continues to shine as a beacon of resilience and innovation, with RAKBank delivering an impressive 26.1% profit growth in H1-2025, reaching Dh1.37 billion in profit after tax. This remarkable achievement underscores the bank’s strategic focus on SME banking, digital transformation, and diversified financial services, positioning it as a leader in the UAE’s dynamic financial landscape. With total assets climbing to Dh95 billion and a 17.4% increase in gross loans, RAKBank’s performance reflects the broader strength of the UAE’s economy amidst global challenges. This article dives into the bank’s H1-2025 results, its strategic initiatives, and what this means for the UAE’s financial future.

A Stellar Financial Performance in H1-2025

RAKBank’s H1-2025 results mark a significant milestone, with a profit after tax of Dh1.37 billion, a robust 26.1% year-on-year increase from H1-2024. The second quarter alone (April to June) saw a net profit of Dh669 million, up 22% from the same period last year. This growth was driven by a combination of strategic investments, operational efficiency, and a strong focus on customer-centric services.

The bank’s total assets grew by 18.1% to Dh95 billion, fueled by a 17.4% increase in gross loans and advances, reaching Dh51.3 billion. Notably, wholesale banking loans surged by 33%, reflecting RAKBank’s commitment to diversifying its portfolio and supporting the UAE’s growing business ecosystem. The CASA (Current Account Savings Account) deposit base also expanded to Dh40.4 billion, up 12.2% year-on-year, maintaining a CASA ratio of 66%—one of the highest in the UAE banking industry.

A key factor in RAKBank’s success was a significant reduction in impairment costs, which dropped by 52.5% to Dh173 million from H1-2024. This improvement reflects enhanced portfolio quality, with the impaired loan ratio decreasing to 1.9% from 2.4% a year ago. These figures highlight RAKBank’s prudent risk management and its ability to maintain financial stability in a competitive market.

Strategic Focus on SME Banking and Corporate Services

RAKBank’s growth in H1-2025 is closely tied to its strategic emphasis on small and medium enterprises (SMEs), a vital segment of the UAE’s economy. The bank has solidified its position as a trusted partner for SMEs, offering tailored financial solutions that drive business growth. This focus aligns with the UAE’s broader economic goals, as outlined in the Abu Dhabi Economic Vision 2030, which prioritizes SME development as a cornerstone of economic diversification.

In addition to SME banking, RAKBank has expanded its corporate banking offerings, particularly in trade finance, escrow services, and debt capital markets. The bank achieved landmark transactions as a book-runner and coordinator, boosting fee and non-funded income. Raheel Ahmed, Group CEO of RAKBank, noted, “We continue to broaden our corporate banking services, achieving significant milestones in trade finance and debt markets, which have driven higher fee income.”

The bank’s Financial Institutions Group also made strides by entering new markets with a focus on trade, further strengthening its position in the UAE’s financial ecosystem. This strategic diversification has enabled RAKBank to capture new opportunities while maintaining a strong balance sheet.

Digital Transformation Fuels Customer Engagement

RAKBank’s investment in digital transformation has been a game-changer, with Dh125 million in capital expenditure (capex) in H1-2025, nearly double the Dh65.9 million spent in H1-2024. This investment has powered the bank’s digital platforms, resulting in over 28 million digital logins in the first six months of 2025 and a 15% year-on-year increase in digital transactions. These numbers reflect RAKBank’s commitment to delivering seamless, user-centric banking experiences.

Card spending also surged by 10% year-on-year, driven by growing customer trust in RAKBank’s digital payment solutions. The bank’s focus on fintech innovation aligns with the UAE’s vision of a cashless society, as seen in initiatives like the adoption of AE Coin for judicial payments by the Abu Dhabi Judicial Department. By leveraging cutting-edge technology, RAKBank is enhancing customer engagement and positioning itself as a leader in the UAE’s digital banking revolution.

Ahmed emphasized, “Our strong balance sheet growth and fee income are driven by robust customer engagement across our digital platforms. We’re committed to delivering innovative solutions that meet the evolving needs of our clients.”

Resilience Amid Global Challenges

RAKBank’s performance stands out against the backdrop of global economic uncertainties, including geopolitical tensions in June 2025 and concerns over potential US trade tariffs. Despite these challenges, UAE banking stocks, including RAKBank, have performed strongly on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX). This resilience underscores the strength of the UAE’s financial sector, which continues to thrive due to robust regulatory oversight by the Central Bank of the UAE (CBUAE) and a diversified economy.

RAKBank’s results follow similar bullish gains reported by ADCB, with other UAE banks expected to announce strong H1-2025 performances in the coming weeks. The sector’s ability to override global headwinds highlights the UAE’s position as a global financial hub, supported by initiatives like the UAE Digital Government Strategy 2025.

Key Financial Highlights of H1-2025

• Profit After Tax: Dh1.37 billion, up 26.1% from H1-2024.
• Q2 Net Profit: Dh669 million, a 22% increase year-on-year.
• Total Assets: Dh95 billion, up 18.1% from H1-2024.
• Gross Loans and Advances: Dh51.3 billion, up 17.4%, with wholesale banking loans rising 33%.
• CASA Deposits: Dh40.4 billion, up 12.2%, with a CASA ratio of 66%.
• Impairment Costs: Down 52.5% to Dh173 million.
• Digital Engagement: 28 million digital logins and 15% increase in digital transactions.
• Card Spending: Up 10% year-on-year.
• Capex: Dh125 million, nearly double H1-2024’s Dh65.9 million.

These figures demonstrate RAKBank’s ability to balance growth, profitability, and risk management while investing in future-ready technologies.

The UAE Banking Sector’s Bright Outlook

RAKBank’s H1-2025 performance reflects the broader strength of the UAE’s banking sector, which continues to benefit from the country’s economic diversification and investment in fintech. The UAE’s commitment to fostering a digital economy, as evidenced by initiatives like TAMM 3.0 and the 5GW AI Campus in Abu Dhabi, creates a fertile ground for banks like RAKBank to thrive.

The bank’s focus on SME banking aligns with the UAE’s goal of empowering small businesses, which account for over 94% of companies in the UAE and contribute significantly to GDP. By offering tailored financial solutions, RAKBank is supporting the UAE’s vision of becoming a global hub for entrepreneurship and innovation.

Moreover, the bank’s reduced impaired loan ratio and lower impairment costs signal a robust credit portfolio, bolstered by the UAE’s stable economic environment. The CBUAE’s regulatory framework, including the Payment Token Services Regulation, ensures that banks like RAKBank operate with transparency and security, fostering public trust in digital and traditional banking services.

What This Means for UAE Residents and Businesses

For UAE residents and businesses, RAKBank’s strong performance translates into enhanced access to innovative financial products and services. The bank’s digital banking platforms offer seamless experiences, from mobile banking to instant payments, making it easier for customers to manage their finances. The 10% increase in card spending reflects growing consumer confidence in RAKBank’s secure payment solutions, particularly for retail and e-commerce transactions.

SMEs benefit from RAKBank’s expanded trade finance and escrow services, which provide flexible financing options and support cross-border trade. The bank’s entry into new markets through its Financial Institutions Group also enhances opportunities for businesses seeking global partnerships.

For investors, RAKBank’s performance strengthens its position on the DFM and ADX, making it an attractive option for those looking to invest in the UAE’s thriving banking sector. The bank’s ability to deliver consistent profit growth amidst global challenges highlights its resilience and strategic foresight.

Looking Ahead: RAKBank’s Vision for the Future

As RAKBank looks to the second half of 2025, its focus on digital innovation, SME support, and corporate banking will continue to drive growth. The bank’s investments in fintech and blockchain technology position it to capitalize on emerging trends, such as the adoption of digital currencies like AE Coin. By aligning with the UAE’s vision for a smart economy, RAKBank is poised to play a pivotal role in shaping the future of banking in the region.

Raheel Ahmed concluded, “Our H1-2025 results reflect our commitment to delivering value to our customers and shareholders. We will continue to invest in technology, diversify our offerings, and support the UAE’s economic growth.