Personal loans, SME lending fuel RAKBANK’s profit jump

By the Editorial Team · Friday, October 23, 2026

RAKBANK's net profit after tax rose 21.3 percent to AED 2.52 billion in the first nine months of 2026, driven by loan growth across multiple banking segments, increased non-interest income, and a one-time gain from selling its merchant acquiring business. The bank's strong asset growth, improved asset quality, and rising profitability metrics highlight its expanding market presence and operational efficiency in the UAE financial sector.

RAKBANK reported a 21.3 percent increase in net profit after tax to AED 2.52 billion for the first nine months of 2026, supported by growth in lending across its personal, business, and wholesale banking segments, enhanced non-interest income, and a one-time gain from the sale of its merchant acquiring business. Profit before tax rose by the same percentage to AED 2.77 billion, while operating income increased 14.7 percent to AED 4.47 billion.

During the third quarter, the bank’s net profit after tax grew 14.7 percent year-on-year to AED 811 million, with profit before tax increasing 14.6 percent to AED 890 million. Net interest income saw a more modest growth of 3.2 percent to AED 2.81 billion over the nine-month period, whereas non-interest income surged 41.4 percent to AED 1.66 billion. This rise was attributed to stronger foreign exchange activity, fees and commissions, and the merchant acquiring business sale, which contributed AED 473 million.

The bank’s total assets reached AED 120.2 billion by the end of September, reflecting a year-on-year increase of approximately 21 percent and a 14.4 percent rise since the start of 2026. Gross loans and advances expanded 22.9 percent to AED 66.2 billion, fueled by growth in personal loans, business banking, and wholesale banking. Personal banking loans stood at AED 29.2 billion, business banking loans exceeded AED 12.1 billion, and wholesale banking loans reached AED 24.9 billion. Customer deposits also rose 21.3 percent to AED 79.6 billion, with current and savings account balances climbing 11 percent to AED 48.3 billion.

RAKBANK added 12,000 small and medium-sized enterprises (SMEs) during the period and provided AED 4.2 billion in new financing. The bank also assisted over 1,000 customers with home purchases. Asset quality improved, as the impaired loans ratio declined to 1.7 percent from 2 percent a year earlier. The capital adequacy ratio was reported at 18.4 percent, alongside an Eligible Liquid Asset Ratio of 14.5 percent.

Profitability measures showed further strength, with return on common equity rising to 23.3 percent from 22.1 percent and return on assets reaching 3.1 percent. The bank described its coverage of Stage 3 loans at 85.9 percent as among the strongest in the sector. These financial results reflect RAKBANK’s continued expansion and improved operational efficiency amid a supportive economic environment in the UAE.

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