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Khaleej Times
24-03-2025
- Business
- Khaleej Times
UAE banks get ratings upgrades from global agencies
Two prominent UAE banks, Abu Dhabi Commercial Bank (ADCB) and RAKBANK, have received positive ratings updates from leading credit agencies, reflecting their strong financial positions and strategic transformations. ADCB has achieved an upgrade in its long-term issuer credit rating to 'A+' from 'A' with a 'stable' outlook by S&P Global Ratings. This advancement places ADCB among the top three rated banks in the Mena region. The upgrade is attributed to the bank's robust financial health, high asset quality, and sound earnings generation. S&P noted that ADCB's capitalisation remains a key strength, supported by improved risk management practices and a contained risk appetite. "We believe the bank's asset quality will continue to benefit from the strengthening of its risk management culture," S&P stated in its assessment. ADCB aims to sustain its growth trajectory with a target of doubling its net profit to Dh20 billion within five years. Since implementing its previous strategy in 2020, ADCB has reported a compound annual growth rate (CAGR) of 28 per cent in profit before tax, exceeding Dh10 billion in 2024, a year ahead of schedule. Additionally, the bank's assets have surged by 59 per cent since 2020, surpassing Dh650 billion. Meanwhile, RAKBank has received affirmation of its BBB+ long-term issuer default rating (IDR) from Fitch Ratings, along with an upgrade in its Viability Rating (VR) to bbb-. This recognition underscores RAKBank's strong capital position and enhanced asset quality, driven by a strategic shift into wholesale banking and treasury operations. The bank's diversification efforts have improved income stability and reduced reliance on traditional retail lending. Fitch highlighted RAKBank's effective risk management, reflected in a steady decline in non-performing loans (NPLs) and high loan-loss coverage ratios. The bank's strong capital buffer and stable deposit base further reinforce its resilience. "The upgrade in our Viability Rating reflects the disciplined execution of our transformation strategy, focusing on diversification, digital innovation, and customer-centric growth," said Jaffer Nini, group CFO of RAKBank. Both banks are committed to accelerating their digital transformation and optimising their portfolios to expand in high-growth sectors. ADCB's significant balance sheet expansion, along with RAKBank's focus on wholesale banking, positions them well for continued success in the competitive UAE financial landscape. Banking analysts said the upgrades signify a positive outlook for the UAE banking sector, highlighting its resilience and capacity for growth amid evolving economic conditions.
Zawya
24-03-2025
- Business
- Zawya
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 or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with us on our social media platforms: For more information, please contact: Suzana Saoud Senior Account Manager Gambit Communications Suzana@
Zawya
19-03-2025
- Business
- Zawya
RAKBANK's credit outlook upgraded to positive by Moody's
Dubai, United Arab Emirates – RAKBANK has received a positive outlook from Moody's Ratings, marking a significant milestone in the Bank's ongoing transformation. Moody's has affirmed RAKBANK's Baa1 long-term deposit rating and Baa1 senior unsecured debt rating, while upgrading the outlook from stable to positive—the first change in its rating outlook since Moody's began assessing the Bank in 2005. This upgrade reflects RAKBANK's improving profitability, enhanced asset quality, and growing Wholesale Banking segment, as the Bank continues to drive sustainable and diversified earnings. Moody's highlighted RAKBANK's strong financial fundamentals, noting that: Profitability is on the rise, supported by a balanced portfolio across retail, business, and wholesale banking. Wholesale banking and treasury operations now contribute over 25% of total operating income, reducing risk and enhancing stability. Asset quality has significantly improved, with the non-performing loan (NPL) ratio declining to 2.2% in 2024, down from 2.8% in 2023 and a pandemic peak of 5.5% in 2020. Loan-loss reserves remain strong, with a coverage ratio of 253%, far exceeding the UAE banking sector average of 103%. Moody's also recognized RAKBANK's solid capital and liquidity buffers, as well as its strong government backing, with Ras Al Khaimah holding a 53% ownership stake in the Bank. Commenting on this milestone, Jaffer Nini, Group CFO of RAKBANK, said: "We are pleased with Moody's decision to upgrade our outlook to positive, reflecting our continuous focus on sustainable growth, diversification, and innovation. Our shift towards Wholesale Banking and secured retail products has strengthened our financial position while maintaining our commitment to delivering exceptional customer experiences. This outlook change positions us well for a potential future rating upgrade as we further enhance our earnings quality and business resilience." -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 more information, please visit or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with us on our social media platforms:
