Moody’s Investors Service has upgraded Rawbank’s long-term deposit rating from Caa1 to B3, as announced on August 16. This upgrade reflects the bank's improved profitability and strong capital position. The DRC-based Rawbank has strengthened its role as a key financial player in a country where the business climate is gradually improving.

The rating boost is largely due to a significant increase in interest income from loans, which surged by 48% in 2023. This growth is driven by the booming mining sector, particularly investments in the copper value chain, a crucial part of the DRC’s economy.

Moody’s also notes a significant improvement in Rawbank's capitalization. The bank’s capital adequacy, measured by comparing equity to risk-weighted assets, rose from 11.0% in 2022 to 15.7% in 2023. This increase indicates better resilience against potential risks and stronger support for future growth. This progress was achieved through prudent margin management, resulting in nearly doubled net profits in 2023.

However, Moody’s points out some concerns. The ratio of non-performing loans increased to 3.1% in 2023 from 2.5% in 2022, reflecting the bank’s expanding loan portfolio, particularly in retail and small-to-medium-sized enterprises (SMEs). This expansion, though, presents a strategic opportunity to enhance Rawbank’s presence in these growing sectors.

Despite the ongoing complexities in the DRC’s economic environment, Rawbank's current performance is expected to continue and even improve. Moody’s analysts believe the bank will maintain enhanced profitability and capitalization, which should stabilize over the long term.

This new rating supports Rawbank’s strategy to play a larger role on the international stage. Notably, on August 6, 2024, Rawbank announced its investment in Africa Finance Corporation, a multilateral institution focused on financing infrastructure projects in Africa, with over $200 million dedicated to the DRC alone.