Fitch has affirmed RAKBANK’s BBB+ long-term issuer default rating (IDR) with a stable outlook while upgrading its Viability Rating (VR) to bbb-, reflecting the bank’s strong financial resilience and strategic transformation.
The upgrade in Viability Rating underscores RAKBANK’s robust capital position, improved asset quality, and growing diversification into wholesale banking. It also reflects the bank’s ability to generate sustainable earnings while maintaining solid liquidity and prudent risk management.
Fitch highlighted key drivers of RAKBANK’s strong performance, including its diversified business model, with a strategic shift into wholesale banking and treasury operations that has enhanced income stability and reduced reliance on traditional retail lending. The bank has also demonstrated improved asset quality, with a steady decline in non-performing loans (NPLs) and high loan-loss coverage ratios, reflecting effective risk management. RAKBANK maintains a strong capital buffer, positioning it well for continued growth, and benefits from a highly stable deposit base, showcasing strong customer confidence.
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Commenting on the rating action, Jaffer Nini, group CFO of RAKBANK, said, “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.”
