Rakbank profit after tax jumps 25% to AED 1.7 billion in record H1 2026

The National Bank of Ras Al Khaimah (Rakbank) reported profit after tax of AED 1.7 billion for the first half of 2026, up 25% year-on-year, the bank said on Thursday. Profit before tax reached AED 1.9 billion, driven by what Rakbank described as a diversified business model, solid balance sheet growth, and disciplined execution across all business segments.

Return on equity climbed to 25.2% from 22.1% a year earlier, while return on assets rose to 3.2% from 3.1%. Operating income for H1 2026 reached AED 3.1 billion, up 22% year-on-year, supported by net interest income of AED 1.9 billion (up 5%) and non-interest income of AED 1.3 billion (up 58%), the latter boosted by an AED 473 million gain on the sale of Rakbank’s merchant-acquiring business.

Net interest margin held at 3.9%, down from 4.3% a year earlier amid lower rates and a more competitive funding environment, while the cost-to-income ratio improved to 29.3% from 34.6%. Asset quality also strengthened, with the impaired loans ratio falling to 1.8% from 2.1% and Stage 3 coverage at 85.9%. Capital adequacy rose to 19.3% from 18.8%.

Total assets grew 14% year-on-year to AED 108.6 billion as of June 2026, with gross loans and advances up 19% to AED 60.8 billion. Customer deposits rose 23% to AED 75.1 billion, with CASA deposits reaching AED 48.3 billion.

During the period, Rakbank issued a $600 million five-year senior unsecured bond that drew an order book of more than $1.3 billion, and completed aviation financing deals including a $110 million facility for flydubai and aircraft financing for Emirates.

“The first half of 2026 demonstrated the resilience of both the UAE economy and Rakbank… Against this backdrop, Rakbank delivered another record financial performance during the first half of 2026,” said Raheel Ahmed, Group CEO of Rakbank, in the bank’s H1 2026 results statement published July 23, 2026.

Rakbank said digital logins exceeded 34 million during H1 2026, more than double the same period last year, while Rai, its AI-powered assistant launched in 2025, has supported more than 1 million customer conversations with a 95% positive engagement rate. The bank also marked its 50th anniversary in 2026 with a refreshed brand identity and a new Personal Banking mobile app.

Rakbank holds investment-grade ratings from Moody’s (Baa1/P-2), Fitch (BBB+/F2), and Capital Intelligence (A/A1), all with a Stable outlook.

This article is based on Rakbank’s H1 2026 financial results press release and Management Discussion & Analysis, issued July 23, 2026.