Dubai: Rakbank reported a 25% increase in profit after tax to a record Dh1.7 billion during the first half of 2026, supported by balance-sheet growth, higher deposits and a Dh473 million gain from the sale of its merchant acquiring business.Customer deposits rose 23% to Dh75.1 billion, while total assets increased 14% to Dh108.6 billion during the period.The bank maintained access to services and credit throughout the first half, while providing relief to customers where required.Deposits support balance-sheet growthGrowth across customer lending, investment securities and deposits supported the expansion of Rakbank’s balance sheet.The bank reported a current and savings account ratio of 64.3%, reflecting the share of lower-cost deposits within its funding base.Its eligible liquid asset ratio stood at 13%, with the bank reporting ample liquidity and stable funding during the period.Profitability was also supported by a net interest margin of 3.9% and performance across the wider banking franchise.Impaired loan ratio improvesRakbank’s impaired loan ratio improved to 1.8% from 2.1% a year earlier.The Stage 3 coverage ratio, which measures provisions held against impaired loans, stood at 85.9%.The bank’s capital adequacy ratio reached 19.3%, remaining above regulatory requirements and providing additional capacity to support lending and future balance-sheet growth.Returns increase during first halfReturn on equity rose to 25.2% from 22.1% during the first half of 2025, representing an increase of 305 basis points.Return on assets increased to 3.2% from 3.1% a year earlier.Rakbank said its first-half performance was supported by diversified revenue, balance-sheet growth and continued execution across its businesses.Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.