Rakbank H1 2026 profit rises 25% to Dh1.7 billion, deposits climb 23%

24/07/2026 08:51 AST

Rakbank reported a 25% increase in profit after tax to a record Dh1.7 billion during the first half of 2026, supported by balance-sheet growth, higher deposits and a Dh473 million gain from the sale of its merchant acquiring business.

Customer deposits rose 23% to Dh75.1 billion, while total assets increased 14% to Dh108.6 billion during the period.

The bank maintained access to services and credit throughout the first half, while providing relief to customers where required.

Deposits support balance-sheet growth
Growth across customer lending, investment securities and deposits supported the expansion of Rakbank's balance sheet.

The bank reported a current and savings account ratio of 64.3%, reflecting the share of lower-cost deposits within its funding base.

Its eligible liquid asset ratio stood at 13%, with the bank reporting ample liquidity and stable funding during the period.

Profitability was also supported by a net interest margin of 3.9% and performance across the wider banking franchise.

Impaired loan ratio improves
Rakbank's impaired loan ratio improved to 1.8% from 2.1% a year earlier.

The Stage 3 coverage ratio, which measures provisions held against impaired loans, stood at 85.9%.

The bank's capital adequacy ratio reached 19.3%, remaining above regulatory requirements and providing additional capacity to support lending and future balance-sheet growth.

Returns increase during first half
Return on equity rose to 25.2% from 22.1% during the first half of 2025, representing an increase of 305 basis points.

Return on assets increased to 3.2% from 3.1% a year earlier.

Rakbank said its first-half performance was supported by diversified revenue, balance-sheet growth and continued execution across its businesses.

Gulfnews