... 1 SR-Bank's (SR-Bank) ratings reflect its stable and low-risk business model, healthy profitability, resilient asset quality and sound capital ratios. The ratings also factor in risks arising from a moderate franchise with a geographically concentrated loan portfolio, from exposures to potentially volatile oil and property prices, as well as from its liquidity management in the context of its reliance on wholesale funding. Focus on Retail and SMEs: Fitch Ratings expects SR-Bank to continue to implement its solid strategy based on a low-risk business model and a focus on retail and SME customers. SR-Bank has successfully reduced concentration risks relating to large exposures in recent years. Strong Asset Quality: Fitch expects SR-Bank's asset quality to remain strong driven by its conservative underwriting standards and a stable operating environment. Impaired loans (defined as Stage 3 loans under IFRS9) accounted for 1.2% of gross loans...
