Prime Bank’s ‘AAA’ rating reflects excellence in governance, stability

Prime Bank PLC has been awarded the highest long-term credit rating of 'AAA' and a short-term rating of 'ST-1' by the Credit Rating Agency of Bangladesh (CRAB), signifying a strong capacity for the timely repayment of financial obligations, said the private lender.

"This recognition reinforces its status as a trusted and secure financial partner for individuals, businesses, and investors alike. This is not merely a reflection of financial metrics. It is a testament to our enduring commitment to prudent banking, customer-first principles, and long-term value creation," said the bank in a statement.

CRAB's evaluation considers a broad range of factors, including capital strength, asset quality, earnings stability, governance standards, and liquidity.

Prime Bank said it maintains a capital adequacy ratio well above the regulatory minimum set by Bangladesh Bank, alongside a non-performing loan ratio significantly below the industry average-- 20.20 percent of total outstanding as of December 2024 -- evidencing strong asset quality and effective credit risk management.

Another cornerstone of the rating, the bank said, is its strong earnings performance, driven by stable interest income, disciplined cost control, and growing non-funded income sources such as trade finance, treasury, and digital banking services.

"Our robust earnings are driven by stable interest income, disciplined cost control, and diversified non-funded income sources such as trade finance, treasury, and digital banking services."

Prime Bank said its well-diversified funding base -- comprising corporate deposits, SME clients, and retail savers -- further strengthens its liquidity position.

"The rating also recognises qualitative aspects such as sound board governance, effective management, internal controls, audit practices, and ethical conduct," it said.

With a comprehensive enterprise risk management framework, the bank integrates risk awareness into decision-making at all levels. Investments in digital transformation, SME development, green finance, and inclusive banking underpin its commitment to trust-led, sustainable growth, it added.

"For customers, this rating guarantees safety, reinforces trust, and reflects a solid partnership," the private bank said.