[RAM] RAM Ratings affirms Citibank Berhad at AAA

RAM Ratings has affirmed Citibank Berhad’s (Citibank or the Bank) AAA/Stable/P1 financial institution ratings in view of its strong wholesale banking franchise, superior funding and liquidity, healthy profitability and asset quality, and solid capital buffer.

The ratings also incorporate a high likelihood of parental support from Citigroup Inc (the Group), given the Bank’s strategic importance in the Group’s operations in Asia and its ongoing access to intragroup liquidity.

While pre-tax profit dipped 5% y-o-y in 9M FY Dec 2025 due to lower fees, higher operating costs and impairment charges, Citibank maintained a commendable annualised return on risk-weighted assets of 6.5% (FY Dec 2024: 7.1%). Profitability is expected to remain strong, supported by bespoke solutions for top-tier clients and a lean cost structure. 

Citibank has a low-risk profile, with 37% of assets in low-risk Malaysian government securities. Gross loans formed 14% of its asset base, mainly constituting revolving credits and short-term trade finance facilities. With a gross impaired loan ratio of 0.6% as at end-September 2025, the Bank’s lending book remains healthy. The second-order impact of US trade tariffs could pose asset quality risks, but the top-tier domestic names and multinational companies that make up Citibank’s clients provide reassurance.

Customer deposits were stable as at end-September 2025, with 91% comprising current and savings accounts deposits, largely sourced from the Bank’s cash management and transactional banking businesses. Citibank’s capitalisation stayed strong with a common equity tier-1 capital ratio of 18.2%, providing an ample buffer against trading-related earnings volatility.


Analytical contacts
Jeremy Noel Paul
(603) 2708 8230
jeremynp@ram.com.my

Sophia Lee 
(603) 2708 8211   
sophia@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my