#1wwwwwwww wwwwwww wwwwwww wwwww wwwwww wwwwwww wwwwwwww www wwwwww wwwwwwww wwwwwww wwwwwww www wwwwwwww ww wwwwwww wwwwwww wwwww wwwwwwww wwwwwwww wwwwwwww wwwwwww wwwwww wwwwwwww wwwwww wwwwwwww wwwwwwww wwwwwwww wwwwwww wwwwwwww ******** wwwwwww www www wwwwwww wwww www wwwwwwww wwwwwww wwwwwww wwwwwwww wwwwww Investor Presentation Q3/9M 2021 RAKBANK Simply Better 0000000 00000 00000000#2RAKBANK Investor Presentation - Q3/9M 2021 Highlights RAKBANK Simply Better Net profit increased by 73.2% Q3 21 v/s Q3 20 Impairment charges declined by 24.0% Q3 21 v/s Q2 21 Gross Loans & Advances increased by 4.0% Year to Date Healthy CAR at 17.8% As at 30 Sep 2021 • • • • Strong performance for the quarter across all business verticals as demonstrated by 73.2% increase in Net Profits as compared to Q3 2020. Gross Loans and Advances increased by 4.0% year to date and 2.7% year on year. Non Interest Income increased by 3.0% for 9M 2021 compared to the same period in 2020. Provision for credit loss continues to improve, declining by AED 71.3 million in Q3 2021 as compared to Q2 2021 and by AED 407.2 million for 9M 2021 compared to the same period in 2020. Provision coverage improved to 134.3% as of Q3 2021 from 129.4% as of Q4 2020. 2#3Bank profile RAKBANK Investor Presentation - Q3 / 9M 2021 3#4RAKBANK Investor Presentation - Q3/9M 2021 The UAE's leading SME lender History RAKBANK Simply Better As of 30th Sep 2021 AED 6.5 b market cap Founded in 1976; listed on Abu Dhabi Securities Exchange (ADX) in 2005. Headquartered in the emirate of Ras Al Khaimah ('RAK'). Major transformation in 2001, rebranding to RAKBANK and shifting focus from Corporate Banking to Personal Banking and small business lending. 27 branches and 296 ATMs in the UAE. AED 54.5 b total assets AED 37.0 b total deposits Launched Islamic Banking window - RAKislamic-in 2013. AED 33.5 b loans & advances 4#5RAKBANK Investor Presentation - Q3/9M 2021 Institutional Strength Credit Ratings Rating Agency Last Update Deposits Outlook Moody's October 2021 Baa1 / P-2 Stable Fitch Ratings May 2021 BBB+ / F2 Stable Capital Intelligence August 2021 A- / A2 Stable Capital Adequacy Total Capital Adequacy Ratio (CAR) as at 30th September 2021 is at 17.8%: Common Equity Tier 1 is at 16.7% and Tier 2 is at 1.1%. Subsidiaries RAKBANK Simply Better Ownership Structure as of 30th June 2021 Government of Ras Al Khaimah UAE Nationals GCC Nationals Foreigners 1.6% 14.2% 31.4% Source: ADX Numbers may not add up due to rounding Subsidiary Ownership Country RAK Insurance 79.23% UAE Back Office Support Services (BOSS) 80.00%* UAE RAK Technology 80.00%* UAE RAKFUNDING CAYMAN LTD 100.00% RAK Global Markets Cayman Limited 100.00% Cayman Islands 52.8% Purpose Cayman Islands Develop insurance products. Provide back office support services. Supply information technology support. Enable the issuance of bonds. Facilitate treasury transactions. *These represent legal ownership of the Bank. However, beneficial ownership is 100% as the remaining interest is held by a related party. 5#6RAKBANK Investor Presentation - Q3/9M 2021 Business Segment Overview Personal Banking RAKBANK Simply Better Business Banking Wholesale Banking Treasury Insurance • Incorporating individual customer financing, credit and debit cards and deposit facilities. Includes lending products such as expat loans, national loans, auto loans, credit cards, and mortgages as well as fee based services like Bancassurance, investment products, foreign exchange, trade services, and remittance. • Incorporating non- individual financing and deposit services for SME customers. Includes Term & Working Capital (TWC), RAK Business Loan, Secured Finance, Asset Based Finance (ABF), Financing against Income Generating Property (FIGP), and Deposit facilities BBG Commercial. RAK Business Loan for business turnovers up to AED75Mn and Working Capital financing for turnovers up to AED250Mn. Incorporating financing and deposit services for larger corporates bodies, including government and public institutions. Includes Trade, service & manufacturing, Diversified corporates, GRE's, MNC's, and Financial institutions. Targeting customers with turnovers above AED250Mn. Incorporating money market activities, investments in debt and equity securities, foreign exchange and derivatives transactions with other banks, and financial institutions. Treasury is the custodian of liquidity and supports the growth of other segments. • Incorporating all insurance related transactions of subsidiary, RAK Insurance. The Bank and RAK Insurance collaborate on manufacturing and selling insurance products. 6#7Performance RAKBANK Investor Presentation - Q3 / 9M 2021 7#8RAKBANK Investor Presentation - Q3/9M 2021 Performance highlights Income Statement [AED Mn] RAKBANK Simply Better 8 00 Quarterly Results 9 Months results Income Statement Highlights Net Interest Income Q3'21 Q3'20 Q2'21 9M 2021 9M 2020 546.5 601.1 543.0 1,621.3 1,963.8 Q3'20 (9.1%) Variance Q3'21 Vs 9M Sep'21 Vs 9M Sep'21 (17.4%) Non-Interest Income 258.9 251.4 288.8 816.8 792.7 3.0% 3.0% Total Income 805.4 852.5 831.8 2,438.1 2,756.4 (5.5%) (11.5%) Operating Expenditures (351.4) (325.7) (343.1) (1,024.5) (1,031.6) (7.9%) 0.7% Operating Profit before impairment provisions 454.0 526.8 488.7 1,413.6 1,724.8 (13.8%) (18.0%) Provisions for Impairment (225.3) (394.8) (296.6) Net Profit 228.7 132.0 192.1 (878.9) 534.7 (1,286.2) 42.9% 31.7% 438.6 73.2% 21.9% Key Ratios [%] Key Ratios Balance Sheet Highlights [AED Bn] Results as at Variance Amounts as at Variance Sep'21 Dec '20 Sep'20 YTD YOY Return On Equity* 9.0% 6.5% 7.6% 2.5% 1.4% Balance Sheet items Total Assets Sep'21 Dec '20 Sep'20 YTD YOY 54.5 52.8 52.3 3.3% 4.1% Return On Assets * 1.4% 0.9% 1.1% 0.4% 0.3% Gross Loans & Advances 33.5 32.2 32.6 4.0% 2.7% Net Interest Margin * 4.1% 4.6% 4.7% (0.5%) (0.6%) Deposits 37.0 36.9 34.2 0.1% 8.1% Cost-to-Income 42.0% 39.2% 37.4% (2.8%) (4.6%) Gross Customers Assets 40.1 37.5 37.7 6.9% 6.3% Provision Coverage Ratio 134.3% 129.4% 131.2% 4.9% 3.1% Gross Impaired Loans Ratio 4.5% 5.2% 5.1% 0.7% 0.6% LSRR 83.9% 80.6% 86.0% (3.3%) 2.1% Liquid Asset Ratio (ELAR) 10.4% 14.5% 9.7% (4.1%) 0.7% Total CAR Basel III** 17.8% 18.6% 19.4% (0.9%) (1.6%) Note: Numbers may not add up due to rounding *Annualized for Sep'19 & Sep'20 **post Prudential Filter#9RAKBANK Investor Presentation - Q3/9M 2021 Profitability Profitability [AED Bn] Total Income Net Profit 4.0 3.8 3.8 3.6 2.8 LLL 0.8 +21.9% -11.5% 2.4 1.1 0.9 0.5 0.4 0.5 Cost-to-Income Ratio RAKBANK Simply Better 39.5% 39.2% 38.9% 38.0% 37.4% 42.0% Dec '17 Dec '18 Dec '19 Dec '20 Sep'20 Sep'21 Dec '17 Dec '18 Dec '19 Dec '20 Sep'20 Sep'21 Annualize Returns ―ROE ROA 14.9% 13.5% 10.6% 9.0% 7.6% 6.5% 1.4% 1.8% 1.8% 2.0% 0.9% 1.1% Net Interest Margin 6.1% 5.5% 5.1% 4.6% 4.7% 4.1% Dec '17 Dec '18 Dec '19 Dec '20 Sep'20 Sep'21 Dec '17 Dec '18 Dec '19 Dec '20 Sep'20 Sep'21 9#10RAKBANK Investor Presentation - Q3/9M 2021 Balance sheet summary Breakdown of Assets by Type [%] Cash & Bal. with UAE Central Bank Due from other Banks Net Loans and Adv. Other Assets Inv. Securities 4.2% 5.9% 14.5% 17.7% 57.7% Breakdown of Investment Securities [%] RAKBANK Assets & Advances Growth [AED Bn] Gross Loans & Advances Total Assets Simply Better 48.5 33.2 34.8 52.7 57.1 52.8 36.3 32.2 32.6 +4.1% +2.7% 52.3 54.5 33.5 Dec '17 Dec '18 Dec '19 Dec '20 Sep'20 Sep'21 Breakdown of Loans by Geography [%] High Grade Uper Medium Grade Non Inv. Grade (Speculative) Highly Speculative Unrated Abu Dhabi Sharjah Ras Al Khaimah Equity and MF Dubai Ajman Umm Al Quwain Fujairah Off Shore Lower Medium Grade Extremely Speculative 13.8% 15.5% 10.5% 5.5% 4.8% 1.7% 26.0% 22.2% 0 11.1% 7.8% 7.7% 0.2% 0.4% 2.0% 62.9% 10#11RAKBANK Investor Presentation - Q3/9M 2021 Customer Assets Mix Total Customer Assets by Segment [AED Bn] Dec '18 Dec '19 Dec '20 Sep 21 FI Loans - Banks RAKBANK Simply Better Total Customer Assets - Personal Banking [AED Bn] Dec '18 Dec '19 Dec '20 Sep '21 18.5 18.7 17.7 16.7 14.3 13.4 12.5 4.4 9.7 5.788 10.1 9.8 53 رکو کو کو کو کو کو کو 4.0 6.6 8.3 8.1 3.5 5.6 4.7 2.7 2.3 4.8 1.6 3.6 7.8 6.3 7.2 7.7 2.5 0.9 2.2 0.5 3.2 5.9 5.4 2.2 2.1 1.9 3.1 3.5 2.1 2.1 0.4 Personal Banking: 44% Business Banking: 20% Wholesale Banking: 36% Expat Loans: 9% National Auto Loans: 1% Loans: 5% Mortgage Loans: 15% Credit Others: 9% Cards: 5% Total Customer Assets - Business Banking [AED Bn] Dec '18 Dec '19 Dec '20 Sep '21 2.7 2.5 2.1 1.9 4.4 4.1 3.4 3.1 2.7 2.6 2.6 2.4 0.5 0.5 0.3 0.3 Trade & Working Capital: 5% RAK Bus. Loan: 8% Asset Based Finance: 1% FIGP: 6% Numbers may not add up due to rounding Total Customer Assets - Wholesale Banking [AED Bn] Dec '18 Dec '19 Dec '20 Sep '21 8.1 8.2 6.6 4.9 2.5 2.7 2.8 2.9 3.1 3.2 2.7 2.3 Corporates: 7% * Govt. Related Entities: 8% FI Loans: 21% 11 * Corporates include Trade Services & Manufacturing, Diversified Corporates, Ras Al Khaimah & Multinational Companies#12RAKBANK Investor Presentation - Q3/9M 2021 Liabilities Customer Deposits Growth [AED Bn] Time Current Savings Call +8.1% 36.8 36.9 37.0 34.1 34.2 32.2 1.2 1.2 1.0 1.3 3.3 3.8 1.2 3.8 1.1 2.9 3.6 3.1 8.9 9.9 13.9 9.2 10.7 13.4 23.0 22.3 17.3 16.5 18.4 20.2 Dec '17 Dec '18 Dec '19 Dec '20 Sep '20 Sep '21 Deposits Value by Segment Notes RAKBANK Simply Better Customer deposits increased by AED 2.8 billion to AED 37.0 billion compared to 30 September 2020. The increase was due to increase in CASA deposits by AED 2.1 billion and AED 0.7 billion in Time Deposits. Customers Deposits Value by Geography Retail Banking Wholesale Banking Business Banking Treasury Abu Dhabi Dubai Ajman Ras Al Khaimah FI Sharjah Umm Al Quwain Fujairah 11.7% 0.0% 13.2% 31.2% 23.4% 11.0% 6.2% 3.8% 0.7% 00 43.9% 54.0% 12 12 Liability Mix Customer Deposits Equity Debt Sec. Issued (EMTN) Synd. Loans & Bil. Borrow. Due to Other Banks Other Liabilities 2.1% 5.3% 6.0% 3.7% 0 15.0% 67.9%#13RAKBANK Investor Presentation - Q3/9M 2021 Asset quality Non Performing Loans [AED Mn] Impaired Loans to Gross Loans Advances Impaired Loans 4.2% 4.0% 4.0% Cost of Risk RAKBANK Simply Better 5.2% 5.1% 4.5% 5.0% 1,668 1,654 1,478 1,334 1,446 1,507 4.1% 3.7% 4.9% 4.8% 3.6% 13 Dec '17 Dec '18 Dec '19 Dec '17 Provision Coverage Ratio Dec '18 Dec '20 Dec '19 Dec '20 Sep '20 Sep '20 Sep '21 Sep '21 Notes 74.6% 133.1% 129.4% 131.2% 134.3% 118.4% Dec '17 Dec '18 Dec '19 Dec '20 Sep '20 Sep '21 Provision charge for credit loss for the quarter decreased by AED 169.5 million compared to Q3 2020 largely due to lower provisions on loans and advances. Non-performing Loans and Advances to Gross Loans and Advances ratio closed at 4.5% compared to 5.1% as at 30 September 2020 and 5.2% as at 31 December 2020. The Bank is well provisioned against loan losses with a loan loss coverage ratio of 134.3%, which does not take into consideration-mortgaged properties and other realizable asset collateral available against the loans.#14RAKBANK Investor Presentation - Q3/9M 2021 Capitalization Breakdown of Equity [AED Bn] Retained Earnings Reserves Share Capital +5.8% Capital Adequacy Ratio CAR CET1 RAKBANK Simply Better 20.7 8.1 7.9 7.8 7.8 7.7 7.1 1.7 1.7 1.7 1.7 1.7 1.5 2.1 2.0 2.1 1.7 1.9 2.4 4.1 4.0 4.1 4.1 4.1 4.1 19.4 18.6 17.8 17.2 16.8 18.2 17.5 16.0 15.7 16.7 14 Dec '17 Dec '18 Dec '19 Dec '20 Sep '20 Sep '21 Dec '17 Dec '18 Dec '19 Dec '20 Sep '20 Sep '21 Risk Weighted Assets [AED Bn] 46.3 43.9 43.7 41.0 35.0 +11.9% 48.9 Dec '17 Dec '18 Dec '19 Dec '20 Sep '20 Sep '21 Notes Total Capital Adequacy Ratio (CAR) as at 30 September 2021 is at 17.8%: Common Equity Tier 1 is at 16.7% and Tier 2 is at 1.1%.#15Additional information RAKBANK Investor Presentation - Q3 / 9M 2021 15#16RAKBANK Investor Presentation - Q3/9M 2021 Senior leadership Board of directors H.E. Mohamed Omran Alshamsi H.H. Shaikha Amneh Alqasimi H.E. Sheikh Salem Al Qasimi Chairman Vice Chairman Executive management Peter England Chief Executive Officer RAKBANK Simply Better Dhiraj Kunwar MD, Business Banking Deepak Majithia Chief Financial Officer Rahul Oberoi MD, Wholesale Banking Director Mr. Salem Ali Al Sharhan Director Mr. Ahmed Essa Al Naeem Director Mr. Rajan Khetarpal Director Mr. Kantic Dasgupta Director K.S. Ramakrishnan Chief Risk Officer Vikas Suri MD, Treasury Mahadevan Radhakanthan Chief Credit Officer Jean Pierre Le Roux MD, Financial Institutions Group & International CEO profile Peter England was appointed as RAKBANK'S CEO on 1st November 2013. In the past few years, Peter has implemented a strategy to diversify the Bank's balance sheet and income base. The strategy included rebuilding Wholesale Banking, strengthening the Business Banking Unit, and enhancing the Personal Banking product suite. These changes and others have broadened the Bank's fee income base by growing capability in areas such as Treasury, Foreign Exchange, Insurance, and proprietary Asset Management. Additionally, Peter played a pivotal role in the Bank's acquisition of a major stake in RAK Insurance. Peter has almost 40 years of experience in Banking and has worked extensively in the UAE, Australia, and in Asia in Malaysia, Singapore and Cambodia. He has a wealth of experience in both Conventional Banking and Islamic Finance, and has a particular interest in the areas of payments and Wealth Management. Peter holds a Master of Business Administration from the University of Southern Queensland and is a Board member of RAK Insurance. Nicola Jane Thompson Chief Internal Auditor Venkat Raghavan Chief Compliance Officer Peter Edward Roberts Chief Operating Officer Ahmed Yousef Chief HR Officer Abdul Karim Juma Director, Islamic Banking Saleh Ali Saleh Director, RAK Business 16#17RAKBANK Investor Presentation - Q3/9M 2021 Recognition RAKBANK Simply Better 17 Best Retail Payment Implementation in the Middle East for "Skiply" Asian Banker Financial Technology Innovation Awards (2021) Best Self-Service Banking Implementation in Middle East for "Quick Apply" Asian Banker Financial Technology Innovation Awards (2021) Outstanding Digital Transformation in Payments for Skiply ME&A Innovation Awards (2021) Best Sustainable Work Practices Excellence Bank Award Middle East Banking Innovation Summit (2021) Best Trade Finance Bank MEA Trade Review Awards (2021) Best Al Technology Implementation for the "Insurance Chatbot" MEA Finance Awards (2021) One of the World's Best Banks of 2021 Best Use of MarTech Enterprise Forbes Advertiser of the Year Vibe MarTech Awards MMA Smarties Award Best Service Performance Outlet Services Sector Dubai Service Excellence Scheme The Number 1 Top Investment House in MENA The Asset Benchmark Research Industry Award for the Advertiser of the Year MMA MENA Smarties (2021) (2021) Best Product/ Service launch Gold award MMA MENA Smarties Best Promotion of the year Gold award MMA MENA Smarties (2020) (2020) (2021) (2020) (2020) (2020)#18RAKBANK Investor Presentation - Q3/9M 2021 Disclaimer RAKBANK Simply Better The information in this presentation has been prepared by The National Bank of Ras Al Khaimah (P.S.C) a public joint stock company, United Arab Emirates ("RAKBANK") and is general background information about RAKBANK'S activities and is not intended to be current as on the date of the presentation. This information is given in summary form and does not purport to be complete. The information is intended to be read by investors having knowledge in investment matters. Information in this presentation, including forecast or financial information, should not be considered as an advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial and legal advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This presentation may contain published financial information, or information obtained from sources believed to be reliable, forward looking statements based on numbers or estimates or assumption that are subject to change including statements regarding our intent, belief or current expectations with respect to RAKBANK's businesses and operations, market conditions, results of operation and financial condition, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. RAKBANK does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside RAKBANK's control. Past performance is not a reliable indication of future performance. RAKBANK disclaims any responsibility for the accuracy, fairness, completeness and correctness of information contained in this presentation including forward looking statements and to update or revise any information or forward looking statement to reflect any change in RAKBANK's financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based. Neither RAKBANK nor its related bodies, corporate, directors, employees, agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any direct, indirect or consequential loss arising from the use of this presentation or its contents or otherwise arising in connection with it for the quality, accuracy, timeliness, continued availability or completeness of any data or calculations contained and/or referred to in this presentation. 18#19Contact Useful information Imad A.I. Khalil Phone: +971 4 291 3263 Email: [email protected] Download copies of: Financial Statements Earnings Release Management Discussion & Analysis RAKBANK Investor Presentation - Q3 / 9M 2021 RAKBANK Simply Better 19