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Rakbank posts record H1 profit on strong lending, asset quality gains
Rakbank’s earnings were supported by strong core banking performance, a Dh473 million business sale gain, improved asset quality and robust capital levels
- PUBLISHED: Thu 23 Jul 2026, 5:37 PM
Rakbank on Thursday reported record profitability for the first half of 2026 as strong lending momentum, improving asset quality and a one-off gain from a business sale helped boost earnings despite a challenging operating environment.
The UAE lender said profitability was supported by an industry-leading net interest margin of 3.9 per cent and a current and savings account (CASA) ratio of 64.3 per cent. Results also included a Dh473 million gain from the sale of its merchant acquiring business.
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The bank’s balance sheet continued to expand during the first six months of the year, driven by growth in customer lending, investment securities and deposits. Liquidity remained strong, with the Eligible Liquid Assets Ratio (ELAR) standing at 13 per cent, reflecting the strength of its funding profile and deposit base.
Credit quality also improved, underscoring the resilience of the bank’s loan book. Impaired loans declined to 1.8 per cent from 2.1 per cent a year earlier, while Stage 3 coverage reached 85.9 per cent, which the bank said was among the highest levels in the sector. Capital adequacy stood at 19.3 per cent, well above regulatory requirements.
Profitability metrics strengthened further during the period. Return on equity rose to 25.2 per cent from 22.1 per cent in the first half of 2025, while return on assets edged up to 3.2 per cent from 3.1 per cent. The figures highlight the bank’s ability to generate higher returns while maintaining strong capital and liquidity buffers.
The results come as UAE banks continue to benefit from solid economic activity, healthy credit demand and strong deposit growth, although lenders are navigating a changing interest-rate backdrop and increased competition for business. Against that backdrop, Rakbank said it maintained support for retail and business customers throughout the period.
Rakbank remained open for business, maintaining uninterrupted access to services and credit while supporting customers through relief where needed,” the bank said in its earnings statement.
