RAK Bank Sees 3% to 4% Loan Growth for Next Year, Says CEO

The transcript discusses the continuation of banking trends over the past few years, focusing on non-interest income growth and balance sheet changes. It highlights the impact of interest rates, with a stable outlook for loan growth. The potential for mergers and acquisitions is explored, but no current discussions are underway. The bank's strategy emphasizes independence, with a strong cost-income ratio. The property market is analyzed, noting falling prices but low loan-to-value ratios. Future growth catalysts include increased SME demand and economic activity.

What has been a significant trend in banking over the past 4-5 years?

• Reduction in balance sheet size

• Growth in non-interest income

• Increase in FX losses

• Decrease in non-interest income

How does Rakbank view the impact of lower interest rates?

• As a major threat

• As a neutral to slightly positive factor

• As a reason to increase lending costs

• As a reason to decrease funding costs

What is the expected loan growth rate for the next year?

• 3-4%

• 1-2%

• 5-6%

• 7-8%

Are there any current merger discussions involving Rakbank?

• Yes, with international banks

• No, there are no discussions

• Yes, with First Abu Dhabi Bank

• Yes, with multiple banks

What is a challenge in the commercial property market?

• Increasing property prices

• Falling rents and prices

• High loan-to-value ratios

• Excessive demand for commercial space

What lending approach does Rakbank focus on for commercial space?

• Asset lending

• Cash flow lending

• Equity lending

• Interest-only lending

What could drive future growth for Rakbank?

• Increased demand in the SME sector

• Higher interest rates

• Decreased economic activity

• Reduced loan-to-value ratios