#1wwwwww wwwwwwww wwwwwww wwwwwwww wwwwww 11 wwwww www wwwwwwww wwwwww wwwwww wwwwwww wwwwww wwwww www wwwwwww wwwwww ww wwwwwww wwwwwwww wwwwwww wwwwwwww www wwwwwwww wwwwwwww www wwwwwwww ******** www**** wwww wwwwwwww www wwwwww wwwwwww wwwwwww wwwwww Investor Presentation Q4/12M 2021 RAKBANK Simply Better wwww 0000000 00000000 1000#2RAKBANK Investor Presentation - Q4/12M 2021 Highlights Net profit increased by 50% FY 21 v/s FY 20 Impairment charges declined by 35% FY 21 v/s FY 20 Gross Loans & Advances increased by 6.1 % Return on Equity at 9.5 % for FY 21 . FY 21 v/s FY 20 RAKBANK Simply Better • • . Gross Loans and Advances increased by 6.1% YOY and Customer Deposits increased by 1.9 % YOY Provision for credit loss continues to improve, declining by AED 586.6 million in in year ending 2021 vs 2020 Total operating income dropped by AED 333.5 million in year ending 2021 vs 2020 Non-performing Loans and Advances to Gross Loans and Advances Ratio improved to 4.1% as at 31 December 2021 vs 5.2 % as at 31 December 2020 2#3Bank profile RAKBANK Investor Presentation - Q4/12M 2021 3#4RAKBANK Investor Presentation - Q4/12M 2021 The UAE's leading SME lender RAKBANK Simply Better As of 31 Dec 2021 History 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 294 ATMs in the UAE. AED 7.5 b market cap AED 56.3 b total assets AED 37.6 b total deposits Launched Islamic Banking window - RAKislamic - in 2013. AED 34.2 b loans & advances 4#5RAKBANK Investor Presentation - Q4/12M 2021 Institutional Strength Credit Ratings Rating Agency Last Update Deposits Outlook Moody's October 2021 Baa1 / P-2 Stable Fitch Ratings Dec 2021 BBB+ / F2 Stable Capital Intelligence August 2021 A- / A2 Stable Capital Adequacy Total Capital Adequacy Ratio (CAR) as at 31st December 2021 is at 17.0%: Common Equity Tier 1 is at 15.9% and Tier 2 is at 1.1%. Subsidiaries RAKBANK Simply Better Ownership Structure as of 31st December 2021 Government of Ras Al Khaimah UAE Nationals 1.7% 14.5% 31.0% 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 GCC Nationals Foreigners 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 - Q4/12M 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. 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 - Q4/12M 2021 7#8RAKBANK Investor Presentation - Q4/12M 2021 Performance highlights Income Statement [AED Mn] RAKBANK Simply Better Quarterly Results Full year results Income Statement Highlights Net Interest Income Non-Interest Income Q4'21 Vs Q4'21 Q4'20 FY2021 FY2020 Variance FY21 Vs FY20 Q4'20 547.2 561.8 2,168.4 2,525.6 (2.6%) 245.3 245.8 1,062.1 1,038.4 (0.2%) (14.1%) 2.3% Total Income 792.4 807.6 3,230.5 3,564.0 (1.9%) (9.4%) Operating Expenditures (371.1) (363.7) (1,395.6) (1,395.3) (2.0%) 0.0% Operating Profit before impairment provisions 421.3 443.9 Provisions for Impairment Net Profit (197.7) 223.6 (377.1) 66.7 1,835.0 (1,076.7) 758.3 2,168.7 (1,663.3) (5.1%) (15.4%) 47.6% 35.3% 505.4 235.1% 50.0% Key Ratios [%] Balance Sheet Highlights [AED Bn] Amounts as at Variance Results as at Variance Key Ratios Dec'21 Sep'21 Dec'20 QoQ YOY Return On Equity* 9.5% 9.0% 6.5% 0.5% 3.0% Balance Sheet items Total Assets Dec '21 Sep '21 Dec'20 Q-O-Q Y-O-Y 56.3 54.5 52.8 3.3% 6.7% Return On Assets * 1.4% 1.4% 0.9% 0.0% 0.5% Gross Loans & Advances 34.2 33.5 32.2 2.1% 6.1% Net Interest Margin* 4.1% 4.1% 4.6% (0.0%) (0.5%) Deposits 37.6 37.0 36.9 1.8% 1.9% Cost-to-Income 43.2% 42.0% 39.2% (1.2%) (4.0%) Gross Customers Assets 40.9 40.1 37.5 2.0% 9.0% Provision Coverage Ratio 133.7% 134.3% 129.4% (0.6%) 4.3% Gross Impaired Loans Ratio 4.1% 4.5% 5.2% 0.4% 1.0% LSRR 82.9% 83.9% 80.7% 1.0% (2.2%) Liquid Asset Ratio (ELAR) 11.6% 10.4% 14.5% 1.2% (2.9%) Total CAR Basel III** 17.0% 17.8% 18.6% (0.8%) (1.6%) Note: Numbers may not add up due to rounding. Figures having adverse variance are shown by () *Annualized for Sep'21 **post Prudential Filter 8#9RAKBANK Investor Presentation - Q4/12M 2021 Profitability Profitability [AED Bn] Total Income Net Profit 4.0 3.8 3.8 3.6 -9.4% +50.0% Cost-to-Income Ratio RAKBANK Simply Better 39.5% 38.9% 39.2% 3.2 38.0% LLL 0.8 1.1 0.9 0.8 0.5 43.2% Dec '17 Dec '18 Dec '19 Dec '20 Dec'21 Dec '17 Dec '18 Dec '19 Dec '20 Dec'21 Annualized Profitability ―ROE ROA 14.9% 13.5% 10.6% 9.5% 6.5% 1.8% 1.8% 2.0% 1.4% 0.9% Net Interest Margin 6.1% 5.5% 5.1% 4.6% 4.1% Dec '17 Dec '18 Dec '19 Dec '20 Dec'21 Dec '17 Dec '18 Dec '19 Dec '20 Dec'21 9#10RAKBANK Investor Presentation - Q4/12M 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 6.9% 4.0% 16.8% 15.0% 57.3% RAKBANK Assets & Advances Growth [AED Bn] Gross Loans & Advances Total Assets Simply Better 48.5 33.2 34.8 52.7 36.3 57.1 32.2 +6.6% +6.1% 52.8 34.2 56.3 Dec '17 Dec '18 Dec '19 Dec '20 Dec'21 Breakdown of Loans by Geography [%] Non Inv. Grade (Speculative) Highly Speculative Unrated Abu Dhabi Equity and MF Dubai Sharjah Ajman Ras Al Khaimah Umm Al Quwain Fujairah Off Shore Breakdown of Investment Securities [%] High Grade Uper Medium Grade Lower Medium Grade Extremely Speculative 5.9% 15.8% 1.6% 4.9% 23.2% 15.8% 11.3% 21.5% 10.5% 12.0% 7.5% 0.2% 1.9% 0.4% 6.5% 61.0% 10 Numbers may not add up due to rounding#11RAKBANK Investor Presentation - Q4/12M 2021 Customer Assets Mix Total Customer Assets by Segment [AED Bn] Dec '18 Dec '19 Dec '20 Dec '21 FI Loans - Banks RAKBANK Simply Better Total Customer Assets - Personal Banking [AED Bn] Dec '18 Dec '19 Dec '20 Dec '21 18.5 18.7 17.4 16.7 15.4 13.4 5.6 4.7 12.5 4.4 4.0 6.7 9.7 10.1 织 9.8 8.3 2.7 8.1 3.5; 2.3 4.8 1.6 3.5 7.8 8.7 6.3 7.2 2.5 0.9 2.0 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 Cards: 5% Others: 9% Total Customer Assets - Business Banking [AED Bn] Dec '18 Dec '19 Dec '20 Dec '21 2.7 2.5 2.2 1.9 4.4 4.1 3.4 3.1 2.7 2.6 2.5 2.4 0.5 0.5 0.3 0.3 Trade & Working Capital: 5% RAK Bus. Loan: 7% 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 3.7 2.5 2.7 2.8 3.1 2.7 2.7 2.3 Corporates: 9% * Govt. Related Entities: 7% Dec '21 8.1 6.6 4.9 FI Assets: 21% 8.9 11 Corporates include Trade Services & Manufacturing, Diversified Corporates, Ras Al Khaimah, Multinational Companies & gold loans Numbers may not add up due to rounding#12RAKBANK Investor Presentation - Q4/12M 2021 Liabilities Customer Deposits Growth [AED Bn] Time Current Savings Call +2% 36.8 36.9 37.6 34.1 32.2 1.2 1.3 3.3 3.8 4.0 2.9 3.1 8.9 9.5 10.7 13.9 13.4 23.0 22.8 17.3 18.4 16.5 Dec '17 Dec '18 Dec '19 Dec '20 Dec '21 Deposits Value by Segment Retail Banking Wholesale Banking Notes RAKBANK Simply Better 12 12 Customer deposits increased by AED 0.7 billion to AED 37.6 billion compared to 31 December 2020. Bank has built a stable CASA franchise as reflected in healthy CASA trends. CASA ratio as at 31.12.2021 is 74.6 %. Customers Deposits Value by Geography FI Business Banking Abu Dhabi Dubai Ajman Sharjah Ras Al Khaimah Umm Al Quwain 31.4% 44.3% 13.2% 11.1% Numbers may not add up due to rounding 8.3% 21.6% 0.8% 1.1% Fujairah 3.7% 9.9% 54.6% Liability Mix Customer Deposits Synd. Loans & Bil. Borrow. Equity Due to Other Banks Debt Sec. Issued (EMTN) Other Liabilities 3.2% 4.2% 5.6% 5.2% 14.9% 66.9%#13RAKBANK Investor Presentation - Q4/12M 2021 Asset quality Non Performing Loans [AED Mn] Cost of Risk Impaired Loans (NPA) to Gross Loans Advances Impaired Loans (NPA) 4.2% 4.0% 4.0% 5.2% 5.0% 4.1% 1,668 1,478 1,446 1,416 1,334 4.1% RAKBANK Simply Better 3.7% 4.8% 3.2% 13 Dec '17 Dec '18 Dec '19 Dec '20 Dec '21 Dec '18 Dec '19 Dec '20 Dec '21 Notes Dec '17 Provision Coverage Ratio 74.6% 133.1% 129.4% 133.7% 118.4% Dec '17 Dec '18 Dec '19 Dec '20 Dec'21 • Non-performing Loans and Advances to Gross Loans and Advances ratio improved to 4.1% compared to 5.2% as at 31 December 2020 and Net Credit Losses to average loans and advances closed at 3.2% which is the lowest in recent years. The Bank is well provisioned against loan losses with an NPL Provision Coverage ratio of 133.7%, which does not take into consideration- mortgaged properties and other realizable asset collateral available against the non performing loans. Increase in provision coverage ratio starting 2018 is due to additional provisions taken as a result of the implementation of IFRS9 as of 1 January 2018.#14RAKBANK Investor Presentation - Q4/12M 2021 Capitalization Breakdown of Equity [AED Bn] Retained Earnings Reserves Share Capital +6.8% 8.4 7.9 7.8 7.8 7.1 1.7 1.7 1.7 1.7 1.7 4.1 4.1 4.1 4.1 4.0 2.1 Dec '17 1.5 Dec '18 Capital Adequacy Ratio CAR CET1 RAKBANK Simply Better 20.7 18.6 17.2 17.0 16.8 17.5 14 2.0 2.1 2.6 16.0 15.7 15.9 Dec '19 Dec '20 Dec '21 Dec '17 Dec '18 Dec '19 Dec '20 Dec '21 *reserves include minority interest Risk Weighted Assets [AED Bn] 46.3 43.9 41.0 35.0 +12.9% 49.5 Dec '17 Dec '18 Dec '19 Dec '20 Dec '21 Numbers may not add up due to rounding Notes Total Capital Adequacy Ratio (CAR) as at 31 December 2021 is at 17%: Common Equity Tier 1 is at 15.9% and Tier 2 is at 1.1%. The CAR ratio has declined in 2021 vs previous year mainly due to increased assets, changes in Capital Adequacy Ratio Regulations mandated by Central Bank of UAE#15Additional information RAKBANK Investor Presentation - Q4/12M 2021 15#16RAKBANK Investor Presentation - Q4/12M 2021 Senior leadership Board of directors H.E. Mohamed Omran Alshamsi H.H. Shaikha Amneh Alqasimi H.E. Sheikh Salem Al Qasimi Mr. Salem Ali Al Sharhan Chairman Vice Chairman Director(Up to 1st Feb, 22) Director Mr. Ahmed Essa Al Naeem Director Mr. Rajan Khetarpal Director Director Director (effective 01st Feb'22) Mr. Kantic Dasgupta Mr. Stephen Robert Monaghan CEO profile Raheel Ahmed was officially appointed as RAKBANK's CEO effective 2nd February, 2022. Raheel will develop and execute the Bank's strategy for the next phase of its growth and increase profitability while achieving excellence in customer engagement by leveraging data and technology. Raheel is a seasoned banker and transformational leader with over 30 years of banking experience across Asia, Middle East, Africa, and Europe. He thrives on developing transformational strategies with a focus on building a high performance and customer-centric culture. Raheel joined RAKBANK from Barclays UK where he was member of the Executive Committee and the Chief Product & Analytics Officer. He was also the Executive Sponsor of Diversity & Inclusion at Barclays UK. Peter England completed an 8-year tenure with the Bank during which he focused on diversifying the Bank's balance sheet and income base. This included rebuilding Wholesale Banking, strengthening the Business Banking Unit, and enhancing the Personal Banking product suite. These changes and others broadened the Bank's fee income base by growing capability in areas such as Treasury, Foreign Exchange, Insurance, and proprietary Asset Management. Executive management Raheel Ahmed Chief Executive Officer (Effective 2nd Feb, 22) Peter England Chief Executive Officer (Up to 1st Feb, 22) Deepak Majithia Chief Financial Officer K.S. Ramakrishnan Chief Risk Officer Peter Edward Roberts Chief Operating Officer Mahadevan Radhakanthan Chief Credit Officer Nicola Jane Thompson Chief Internal Auditor Venkat Raghavan Chief Compliance Officer RAKBANK Simply Better Dhiraj Kunwar MD, Business Banking Rahul Oberoi MD, Wholesale Banking Vikas Suri MD, Treasury Jean Pierre Le Roux MD, Financial Institutions Group & International Ahmed Yousef Chief HR Officer Abdul Karim Juma Director, Islamic Banking Saleh Ali Saleh Director, RAK Business 16#17RAKBANK Investor Presentation - Q4/12M 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 Gold Award Winners The Asset ESG Corporate Awards 2021 (2021) (2021) (2021) (2021) (2021) (2021) Dubai Chamber CSR Label Certificate on Environment for 2021 Best Wealth Management Provider in the UAE World Finance Wealth Management Awards Banking Innovation Awards EFMA Accenture Banking Innovation Awards Customer Journey Reimagination category- SME Digital Onboarding Infosys Finacle Innovation Awards Best Online Bank UAE International Business Magazine Best Bank for Insurance in the UAE International Business Magazine (2021) (2021) (2021) (2021) (2021) (2021)#18RAKBANK Investor Presentation - Q4/12M 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 - Q4/12M 2021 RAKBANK Simply Better 19