Strong customer franchise in the retail sector Superior and sustained profitability Concentration risks in loans and deposits that are lower than peers' Solid capitalization Narrow, although improving, business diversification out of retail lending Still developing geographic diversification Increasing competitive pressure The ratings on Saudi Arabia-based Al Rajhi Bank reflect the bank's healthy customer franchise in the retail sector, superior profitability, concentrations in loans and deposits that are lower than peers', and solid capitalization. The ratings are constrained by limited business and geographic diversification, as well as increasing loan leverage and competition. In terms of assets, Al Rajhi is the third-largest bank in the Kingdom of Saudi Arabia (AA-/Stable/A-1+). With the most extensive branch network in the kingdom (in excess of
