Fitch affirms our BB ratings and highlights the strengthening of our business model and increasing scale
The report highlights stable profitability and funding. The Outlook was revised to Negative due to the pressure on Fitch’s adjusted capital ratio
On October 16, Fitch Ratings affirmed ueno bank’s international local- and foreign-currency credit ratings at BB and our Viability Rating at bb, which assesses the bank’s standalone financial strength. The assessment reflects the quality of our loan portfolio, stable profitability and funding, and expanding presence in Paraguay. In the same review, the agency revised the Outlook from Stable to Negative due to pressure on adjusted Fitch capital ratios associated with balance sheet growth and the impact of intangible assets.
The strengths Fitch recognizes
Fitch highlights ueno’s position as the bank with the largest customer base in Paraguay’s banking system, its designation as a systemically important bank and its contribution to financial inclusion. The report describes our asset quality as sound. As of June 2026, the reported non-performing loan ratio was 0.6%, with loan loss reserve coverage of 345.2%. Operating profit as a percentage of risk-weighted assets rose to 3.7%, from 3.5% at year-end 2025. Deposits remain our main funding source.
Our priority: strengthening capital
Capital is a bank’s own financial buffer for absorbing losses. Fitch uses an adjusted measure, Fitch Core Capital (FCC), which deducts intangible assets because the agency does not consider them capital available for this purpose.
Fitch cites pressure in our capital metrics due to rapid balance-sheet growth and high intangible assets. However, the Fitch Core Capital ratio (FCC) remained unchanged at 10.3% in YE25 and 2Q26 after deducting intangibles from reported equity. In its March 2026 report, FItch Ratings reported a FCC of 15.2% at YE25 but this figure didn’t deduct intangibles. A return to a Stable Outlook depends on successfully executing our plans to moderate balance-sheet growth and reduce intangible assets, and on restoring and sustaining FCC above 13%.
Our priority is to grow capital faster than the balance sheet. Fitch notes that our retention of all earnings and continued shareholder support offset this pressure, and expects FCC to strengthen gradually as growth moderates and intangible assets are progressively amortized. We hope that the measures we have taken will facilitate a prompt review of the outlook.
On October 16, Fitch Ratings affirmed ueno bank’s international local- and foreign-currency credit ratings at BB and our Viability Rating at bb, which assesses the bank’s standalone financial strength. The assessment reflects the quality of our loan portfolio, stable profitability and funding, and expanding presence in Paraguay. In the same review, the agency revised the Outlook from Stable to Negative due to pressure on adjusted Fitch capital ratios associated with balance sheet growth and the impact of intangible assets.
The strengths Fitch recognizes
Fitch highlights ueno’s position as the bank with the largest customer base in Paraguay’s banking system, its designation as a systemically important bank and its contribution to financial inclusion. The report describes our asset quality as sound. As of June 2026, the reported non-performing loan ratio was 0.6%, with loan loss reserve coverage of 345.2%. Operating profit as a percentage of risk-weighted assets rose to 3.7%, from 3.5% at year-end 2025. Deposits remain our main funding source.
Our priority: strengthening capital
Capital is a bank’s own financial buffer for absorbing losses. Fitch uses an adjusted measure, Fitch Core Capital (FCC), which deducts intangible assets because the agency does not consider them capital available for this purpose.
Fitch cites pressure in our capital metrics due to rapid balance-sheet growth and high intangible assets. However, the Fitch Core Capital ratio (FCC) remained unchanged at 10.3% in YE25 and 2Q26 after deducting intangibles from reported equity. In its March 2026 report, FItch Ratings reported a FCC of 15.2% at YE25 but this figure didn’t deduct intangibles. A return to a Stable Outlook depends on successfully executing our plans to moderate balance-sheet growth and reduce intangible assets, and on restoring and sustaining FCC above 13%.
Our priority is to grow capital faster than the balance sheet. Fitch notes that our retention of all earnings and continued shareholder support offset this pressure, and expects FCC to strengthen gradually as growth moderates and intangible assets are progressively amortized. We hope that the measures we have taken will facilitate a prompt review of the outlook.