Fitch Affirms RAKBANK's Strong Rating - Upgrades Viability Rating

RAKBANK's recent upgrade in Viability Rating reflects its strong capital base, improved asset quality, and increasing expansion into wholesale banking. This upgrade also underscores the bank’s ability to generate sustainable profits while maintaining high liquidity levels and adhering to a prudent risk management approach.

Strategic Shift Towards Diversification

Fitch emphasized RAKBANK’s solid performance, driven by its well-diversified business strategy. The bank’s deliberate expansion into wholesale banking and treasury operations has contributed to greater income stability, reducing dependence on traditional retail lending. This strategic shift has strengthened its financial foundation and enhanced revenue consistency.

Improved Asset Quality and Risk Management

RAKBANK has demonstrated significant improvement in asset quality, marked by a consistent reduction in non-performing loans (NPLs) and strong loan-loss coverage ratios. These improvements highlight the bank’s effective risk management practices, ensuring resilience against economic fluctuations and financial uncertainties.

Strong Capital Reserves and Customer Confidence

With a solid capital buffer in place, RAKBANK is well-positioned for sustained growth. The bank also benefits from a highly stable deposit base, reflecting strong customer trust and confidence in its financial stability and services.

Jaffer Nini, Group CFO of RAKBANK, commented on the rating action: “The upgrade in our Viability Rating reflects the disciplined execution of our transformation strategy, focusing on diversification, digital innovation, and customer-centric growth. As we continue to strengthen our wholesale banking franchise and enhance risk management, we remain committed to delivering long-term value for our stakeholders.”

Commitment to Growth and Innovation

Holding a BBB+ rating with a stable outlook, RAKBANK reaffirms its standing as a top-tier financial institution in the UAE. The bank remains committed to accelerating digital transformation, optimizing its portfolio, and expanding its presence in high-growth sectors. With a focus on enhancing operational efficiency and profitability, RAKBANK continues to strengthen its competitive edge in the market.