Fitch has affirmed RAKBANK's BBB+ long-term IDR with a stable outlook while upgrading its Viability Rating to bbb-
Dubai, UAE – 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.
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."
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, optimizing its portfolio, and expanding in high-growth sectors while continuing to drive profitability and operational efficiency.
-Ends-
About RAKBANK
RAKBANK, also known as the National Bank of Ras Al Khaimah (P.S.C), is one of the UAE's oldest yet most dynamic banks. Since 1976, RAKBANK has been a market leader, offering a wide range of banking services across the UAE.
We're a public joint stock company based in Ras Al Khaimah, UAE, with our head office located in the RAKBANK Building on Sheikh Mohammed Bin Zayed Road. The Government of Ras Al Khaimah holds the majority of our shares, which are publicly traded on the Abu Dhabi Securities Exchange (ADX).
RAKBANK stands out for its innovation and unwavering commitment to delivering awesome customer experiences. Our transformative digital journey aims to be a 'digital bank with a human touch,' accompanying you during key moments.
With 21 branches and advanced Digital Banking solutions, we offer a wide range of Personal, Wholesale, and Business Banking services. Through our Islamic Banking unit, RAKislamic, we provide Sharia-compliant services to make your banking experience seamless, whether you visit us in person or online.
For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with us on our social media platforms:
twitter.com/rakbanklive
Instagram.com/rakbank
tiktok.com/@rakbank
linkedin.com/rakbank
For more information, please contact:
Suzana Saoud
Senior Account Manager
Gambit Communications
Suzana@gambit.ae
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
14 hours ago
- Zawya
Nigeria: Wema Bank ratings upgraded by Fitch, GCR
Wema Bank, Nigeria's oldest indigenous bank and the pioneer of Africa's first fully digital bank, ALAT, has received rating upgrades from credit rating agencies Fitch and GCR. The upgrades reflect the bank's strong performance and resilience in the face of industry challenges. Fitch upgraded Wema Bank's National Long-Term Rating to 'A-(nga)' from 'BBB(nga)', with a Positive outlook, while affirming its Long-Term Issuer Default Rating (IDR) at 'B-'. GCR also upgraded the bank's national scale long- and short-term issuer ratings to BBB+(NG)/A2(NG) from BBB(NG)/A3(NG), with a Stable outlook. The upgrades are a testament to Wema Bank's commitment to delivering value to its customers and shareholders. The bank's deliberate approach to banking has earned it a reputation as Nigeria's most innovative bank, with a legacy of impact, resilience, empowerment, innovation, and excellence. Wema Bank's Managing Director and CEO, Moruf Oseni, commended Fitch and GCR for their objective assessments and projections of the bank's promising future. He reiterated the bank's commitment to its customers and shareholders, asserting that Wema Bank's journey has just begun at 80 years. According to him, 'Wema Bank is more than just a provider of financial services. This great institution represents a bold and firm statement to the world, 'Nigerian-owned can stand the test of time'. Wema Bank was founded on the precipice of catering to the needs of Nigerians when no one else would. 80 years later, that legacy lives on and we are more fueled than ever to keep that timeless legacy thriving. 'Wema Bank has navigated every challenge, bounced back with an unquenchable thirst to keep going, and consistently developed solutions that accelerate progress across various industries beyond banking. Today, Wema Bank stands stronger than ever at 80 years. This is what happens when you devote your 'all' to self-improvement and delivering value to the people you serve. 80 years seems like a lot—and it is, but it is nothing compared to what lies ahead. 'These upgrades are very significant and represent good news for us as a bank. It stands as a strong testimony to the great work we have all put in in the last one year. Wema Bank will continue to exceed all expectations, support the people on all levels and never relent in our promise to keep delivering optimum value to every stakeholder,' Oseni concluded. The upgrades align with previous positive ratings Wema Bank has received, including a rating upgrade from Agusto & Co to Bbb+, with an ESG Score of 2 and a Stable outlook in 2024. The bank's solid performance and resilience have earned it recognition both nationally and internationally. '2024 also saw GCR upgrade Wema Bank Plc's national scale long-term issuer ratings to BBB(NG) from BBB-(NG) and affirm the short-term issuer rating of A3(NG), with the Outlook revised to Stable; while Fitch affirmed the bank at 'B-' with Outlook, Stable. 'Wema Bank's commitment to delivering value and generating positive impact on individual, industry, national, and global levels is evident in its continued growth and innovation. The bank's legacy of 80 years is a testament to its ability to adapt and thrive in a rapidly changing banking landscape.'
Fintech News ME
a day ago
- Fintech News ME
Stake Launches First Real Estate Development Fund in Saudi Arabia
Stake, a real estate investment platform based in Dubai and Riyadh, has launched its first private real estate development fund in Saudi Arabia. The fund is located in Riyadh's Al Malqa district, near major commercial and government zones including the King Abdullah Financial District and the Diplomatic Quarter. It is fully Shariah-compliant and open to both local and international investors, with a minimum investment of SAR 500. This development is part of Stake's broader regional expansion following its entry into the Saudi market in early 2024. The platform became the first regulated by Saudi Arabia's Capital Market Authority (CMA) to offer non-Saudi investors access to the Kingdom's real estate sector. Within five months of launching in the country, Stake introduced three private real estate funds, attracting over SAR 135 million in foreign direct investment from investors in more than 70 countries. Backed by entities including Tharwat for Wealth Management, Rasaf Investment, and Mawan Real Estate, the new Riyadh-based fund positions Stake as a key player in supporting Saudi Arabia's Vision 2030 agenda to diversify its economy and expand foreign participation in real estate. The fund launch comes as Stake also surpasses AED 1 billion in real estate transactions since its launch in 2021. The platform has facilitated over 250,000 individual investments across more than 420 properties, primarily in Dubai, with a user base of over one million individuals across 170 countries.
Al Etihad
2 days ago
- Al Etihad
GCC banks with Turkish subsidiaries set to gain as inflation eases in Türkiye: Fitch Ratings
12 June 2025 17:39 A. SREENIVASA REDDY (ABU DHABI)Gulf banks with subsidiaries in Türkiye are poised to benefit from improving macroeconomic conditions in the Turkish market, according to Fitch Ratings. Easing inflation and signs of greater financial stability are expected to soften the financial drag these subsidiaries have imposed in recent the affected institutions is Emirates NBD, which owns DenizBank in Türkiye. Like its regional peers, Emirates NBD has suffered from what are called "net monetary losses" — accounting hits that stem from Türkiye's persistently high inflation. Under international accounting rules (specifically IAS 29 for hyperinflation), these banks must adjust the value of their Turkish assets, leading to large losses on their noted that since 2022, Gulf Cooperation Council (GCC) banks have reported more than $7 billion in such losses, equivalent to about 5% of their combined equity by the end of 2024. In 2024 alone, $2.5 billion in net monetary losses were recorded. Qatar National Bank (QNB) and Kuwait Finance House (KFH) were among the hardest hit, with their profitability ratios reduced by 60 to 70 basis there is now cautious optimism. Quarterly losses shrank by about 20% in Q1 2025, thanks to Türkiye's inflation cooling to around 40%, down from 67% in the same period last year. Fitch expects total losses to fall further to $1.1 billion in 2025 and $920 million in 2026, assuming continued disinflation, with inflation forecast to drop to 28% by year-end 2025 and 21% by 2026.'If disinflation continues at least in line with our expectations after 2025, GCC banks will probably stop using hyperinflation reporting from 2027,' Fitch Ratings said. Furthermore, profit margins at the subsidiaries may improve once Türkiye's central bank begins cutting interest rates, expected to fall to 33% by end-2025 from the current 46%, and then to 24% in this progress, Fitch maintains a cautious view. The agency said it still treats exposure to Türkiye as a credit-negative factor. These exposures result in a one-notch deduction from their viability scores — a key measure of a bank's intrinsic financial health — due to the relatively higher risks in the Turkish market compared to the more stable GCC region. While these Turkish subsidiaries account for only between 3% and 21% of the parent groups' total assets, any material improvement in Türkiye's economic environment could gradually ease the strain. Fitch signalled that in the long run, this might contribute to upgrades in the affected banks' ratings — but only in conjunction with other supportive factors.
