Technology

Fitch Ratings has reaffirmed RAKBANK’s BBB+ long-term Issuer Default Rating (IDR) with a stable outlook, while upgrading its Viability Rating (VR) to bbb-, citing the bank’s strong financial resilience and strategic transformation.

Key Drivers of the Upgrade

The upgrade in Viability Rating reflects RAKBANK’s:

• Robust capital position, ensuring financial stability.

• Improved asset quality, with declining non-performing loans (NPLs) and high loan-loss coverage.

• Strategic shift towards wholesale banking and treasury operations, diversifying revenue streams beyond traditional retail lending.

• Sustainable earnings generation, backed by prudent risk management.

• Stable deposit base, indicating strong customer confidence.

Fitch highlighted that RAKBANK’s focus on diversification, digital innovation, and operational efficiency has strengthened its financial standing and reduced risk exposure.

Executive Insights

Jaffer Nini, Group CFO of RAKBANK, commented:
"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."

Future Outlook

RAKBANK’s BBB+ rating with a stable outlook reaffirms its position as a leading financial institution in the UAE. The bank remains focused on:

• Accelerating digital transformation to enhance banking services.

• Optimizing its portfolio to balance risk and profitability.

• Expanding into high-growth sectors, driving long-term financial success.

By maintaining strong capital buffers and risk controls, RAKBANK continues to fortify its market position while fostering innovation and sustainable growth.

• Tags
• #Business
• #Magazine
• #Lifestyle