Insights from Fitch's Latest Evaluation: RAKBANK Achieves BBB+ Long-Term Rating

The improvement in RAKBANK's Viability Rating signifies its strong financial foundation, marked by a substantial capital base, improved quality of assets, and a strategy that increasingly leans towards wholesale banking.

The shift towards a more diversified business model, particularly the expansion into wholesale banking and treasury functions, has played a pivotal role in stabilizing income and lessening the dependency on conventional retail lending practices.

Jaffer Nini, the Group CFO of RAKBANK, shared insights on the bank's achievement, stating, "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."

Fitch highlighted key factors driving RAKBANK's strong performance. The bank's diversified approach-both in its business model and through initiatives to expand wholesale banking and treasury functions-has significantly contributed to income stability.

Additionally, the bank's improved asset quality is evident in the steady decline of non-performing loans (NPLs) and high loan-loss coverage ratios, showcasing effective risk management. RAKBANK also benefits from a strong capital buffer that positions it for future growth while maintaining a highly stable deposit base that reflects strong customer confidence.

In the landscape of UAE's financial sector, RAKBANK's BBB+ rating with a stable outlook positions it as a premier institution. The bank is on a fast track towards digital transformation, aiming to refine its portfolio and venture into sectors with high growth potential.

Fitch's upgrade of RAKBANK's Viability Rating reflects its strong capital position, improved asset quality, and strategic diversification into wholesale banking. By prioritizing digital innovation and customer-centric growth, the bank is well-positioned to sustain long-term value creation for its stakeholders.