RAKBANK Investor Presentation - Q4/12M 2021 slide image

RAKBANK Investor Presentation - Q4/12M 2021

RAKBANK 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.
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