RAKBANK

RAKBANK

Type	Public Joint Stock Company
Industry	Banking Financial services
Area served	United Arab Emirates
Key people	H.E. Mohammad Omran Alshamsi (Chairman) Peter England (Chief Executive Officer) Deepak Majithia (Head of Finance) Ian Hodges (Head of Personal Banking) Raghuveer Mehra (Head of Credit and Assets for Personal Banking) Malcolm D'Souza (Head of Treasury) Rahul Oberoi (Head of Business Banking) K.S. Ramakrishnan (Head of Internal Audit) Mufaddal Khumri Idris (Head of RAKBANK AMAL for Islamic Banking)
Products	Cards Wealth Management RAKFinance Insurance & Takaful Mortgages Auto Finance Personal Finance Business Banking

RAKBANK is the trading name of the National Bank of Ras Al-Khaimah PJSC, a public joint stock company headquartered in the emirate of Ras Al-Khaimah, in the United Arab Emirates (UAE). It is listed on the Abu Dhabi Securities Exchange (ADX) and its shares are publicly traded ^[1]

RAKBANK is a retail and business bank in the UAE with assets of AED 34.5 billion at the close of the first half of 2014.^[2] The Bank provides conventional and Islamic retail, small business, and commercial banking services through a network of thirty four branches in the UAE as well as its Telephone, Online and Mobile Banking channels. According to The Banker's Top 1000 Arab Bank Rankings in 2014 (published by FT Financial Publishing), RAKBANK is the 1st in the UAE by Return On Assets (ROA) and 17th in the world.^[3]

The Bank was amongst the few commercial banks in the UAE which posted profit growth in 2009. Due to the Bank’s withdrawal in 2006 from lending in the construction and civil engineering segments outside of its base Emirate, it has very little residual exposure in those segments and has no exposure to construction involving high-rise towers^[4]

At the start of 2013, the Bank launched an Islamic Banking unit, RAKBANK AMAL, amid a flood of investments in the Shariah (Islamic law)-compliant financial sector in the country.^[5] The Islamic banking products and services are offered via its subsidiary, RAK Islamic Finance Company. In August 2014, the Bank announced its intention to acquire a majority stake in Ras Al Khaimah National Insurance Company (RAKNIC) following approval from the Bank’s shareholders. Shareholders voted in favour of the Bank buying a majority stake at Dh3.64 per share during its ordinary general assembly held on Monday at the bank’s headquarters in Ras Al Khaimah. The acquisition will be done through an offer to all shareholders of RAKNIC.^[6]

Corporate history

Established in the 1970s, the National Bank of Ras Al-Khaimah underwent a major transformation in 2001, with a shift in focus from corporate banking to retail and small businesses.

Milestones

1976

• Formation of National Bank of Ras-Al-Khaimah

2000

• Rebranding of the Bank as a retail bank

2001

• Re-branding of the Bank to RAKBANK
• Launch of first credit cards - Visa Classic and Gold - first ‘Free for Life’ credit cards in the market

2004

• Launch of mortgage loan business for freehold properties in Dubai

2006

• Launch of MasterCard Titanium credit card – the first card in the market to offer ‘cashback on purchases’

IPO/listing on Abu Dhabi Securities Exchange

2010

• Launch of Fast Saver online-only account^[7]

2011

• Launch of RAKBANK Direct^[8]
• Launch of Chinese-Enabled ATMs in the UAE^[9]
• Launch of RAKBANKdeals.ae^[10]

2013

• Launch of RAKBANK AMAL Islamic Banking
• Appointment of a new CEO^[11]

2014

• Increase in Foreign Ownership to 40%^[12]
• Approval from shareholders to purchase RAKNIC shares ^[6]
• Issuance of a Bond through RAKFUNDING Cayman Ltd.^[13]

Ownership structure

Subsidiaries

RAKBANK has a total of four subsidiaries as of 30 September 2014:

Subsidiary	Ownership	Country	Purpose
RAK Islamic Finance Company	99.99%	UAE	To enable the Bank to sell Sharia-compliant products
Back Office Support Services (BOSS)	80%	UAE	To provide back office support services
RAK Technology	80%	UAE	To supply information technology support
RAKFUNDING CAYMAN LTD	99.99%	Cayman Islands	To enable the issuance of notes

Shareholders

The Bank is 52.76% owned by the Government of Ras-Al-Khaimah with shares that are publicly traded. The Board consists of several members of the ruling family of the emirate and businessmen from across the UAE and Kuwait. Ras Al-Khaimah^[14]

Shareholder Ownership
The Government of Ras Al Khaimah	52.76%
UAE Citizens	26.99%
Foreign Ownership	20.25%

Management

• Peter England - Chief Executive Officer
• K.S. Ramakrishnan - Head of Internal Audit
• Deepak Majithia - Chief Financial Officer
• Tim Basford - Chief Operating Officer
• Ian Hodges - Head of Retail Banking
• Raghuveer Mehra - RAKBANK Head of Credit & Assets for Personal Banking
• Mufaddal Khumri Idris - Head of RAKBANK AMAL
• Rahul Oberoi - Head of Commercial Banking
• Malcolm D’Souza - Head of Treasury
• Mahadevan Radhakanthan - Head of Credit for Business Banking
• Sabrina Couto - Head of Service Quality & Training

Board of Directors

• H.E. Shaikh Omar bin Saqr Al-Qasimi - Chairman
• H.E. Shaikh Salim bin Sultan Al-Qasimi - Director
• Mr. Hamad Abdulaziz Al Sagar - Director
• Mr. Abdul Aziz Abdulla Al Zaabi - Director
• Mr. Yousuf Obaid Essa Al Nuaimi - Director
• Mr. Ahmed Essa Al Naeem - Director
• Mr. Salem Ali Abdullah Al Sarhan Al Nuaimi - Director
• Mr. John Graham Honeybill - Director

Financial results

All financial results have been audited and reviewed by the Dubai office of Pricewaterhouse Coopers. The full press releases are available on www.rakbank.ae.RAKBANK is also rated by Moody's Investor Services, Fitch Ratings and Capital Intelligence. The full ratings are available directly from the respective rating agencies or from their website. The most current ratings of RAKBANK are:^[15]

Rating Agency	Last Update	Long Term Rating	Outlook
Moody's	April 2014	Baa1	Stable
Fitch	March 2014	BBB+	Stable
Capital Intelligence	August 2014	BBB+	Stable

Products and services

Personal banking products

• Credit Cards
• Debit Cards
• Prepaid Cards
• Wealth Management
• RAKFinance
• Insurance
• Mortgages
• Auto Loans
• Personal Loans

Business Banking

Business Banking is made up of the Commercial and Small to Medium Enterprises division which caters to medium-sized businesses. The Bank offers customers products ranging from fund-based facilities such as overdrafts, term loans, loans against invoices, bill discounting, import and export finance to non-fund based facilities such as letters of credit, guarantees and foreign exchange forward cover facilities.

Islamic Banking

RAKBANK established an Islamic banking unit, AMAL, in January 2013 with an issued capital of Dh100 million (US$27.2m), according to the bank's financial statements.^[5] The bank offers Shariah compliant personal and business banking products and services including cards, personal finances, business finance, and takaful.

Services

RAKBANK Direct

In early 2011, RAKBANK launched RAKBANK Direct to provide customers with instant insurance quotations as well as a web chat service with a bank representatives.^[16]

Mobile Banking

Also in early 2011, RAKBANK launched its Mobile Banking service, an alternative channel that provides customers with the convenience of conducting banking transactions on the go via mobile phones. RAKBANK made Mobile Banking available on both smart phones and conventional mobiles.^[17]

RAKBANKdeals.ae

In late 2011, RAKBANK launched RAKBANKdeals.ae, an online platform providing Credit and Prepaid Cardholders with weekly deals offering discounts of 50% and more. In mid-2012, it made RAKBANKdeals.ae into an interactive mobile application.^[18]

MobileCash

In mid-2014, RAKBANK launched MobileCash for instant money transfer through mobile phones. The recipient doesn’t even need a bank account – they enter a code and pick up the money from a RAKBank ATM. The recipient doesn’t even need a smartphone either ^[19]

CSR

RAKBANK has a number of strategies in place to honor its sustainability commitments which reduce the bank’s consumption of paper, toners, and energy. It is also constantly scouting for opportunities to help better society and to offer philanthropic contributions.^[20]

Standards and recognition

Awards and accreditations

• Best Internet Banking Initiative Award at The Asian Banker – Middle East Retail Product Awards 2014 for Click and Collect^[21]
• Best Core Banking Implementation Project Award in the Middle East at The Asian Banker – Technology Implementation Awards 2014
• Gold Summit Creative Award (SCA) during the 2013 Summit International Award (SIA) for AMAL Launch TVC
• VRL Prepaid Middle East Award 2013 for Outstanding Innovation for the RAKBANK Bayani Card
• Bank of the Year award at the 2012 Arabian Business Achievement Awards^[22]
• Best Marketing Campaign of the Year award at the Middle East Prepaid Awards 2012 for the MasterCard Bling campaign^[23]
• Best Credit Card in the Middle East and North Africa in 2011 by Bankers Middle East

References

^[1]

External links

• Official Website

1. ↑ https://www.zawya.com/story/RAKBANK_Honoured_with_Two_Prominent_Awards_by_The_Asian_Banker-ZAWYA20140512113053/