[RAM] RAM Ratings affirms Deutsche Malaysia's AAA rating

RAM Ratings has affirmed Deutsche Bank (Malaysia) Berhad’s (Deutsche Malaysia or the Bank) AAA/Stable/P1 financial institution ratings. 

The affirmation is premised on Deutsche Malaysia’s well-established position in the domestic wholesale banking segment, particularly in fixed income and currencies (FIC), supported by solid liquidity, sound risk management and strong capital buffers. The ratings also incorporate an uplift, reflecting our expectations of a ‘high’ likelihood of extraordinary parental support from Deutsche Bank AG (the Group) given the Bank’s strategic role within the Group’s Asian wholesale banking network. Deutsche Bank AG’s steadily improving earnings profile following the execution of its transformation strategy further supports this assessment, although its profitability metrics continue to trail stronger global banking peers.   

For FY Dec 2025, Deutsche Malaysia recorded a pre-tax profit of RM311.6 mil, translating to a higher return on risk-weighted assets of 3.8% (FY Dec 2024: 3.6%). This was largely driven by strong foreign exchange gains, which more than offset higher personnel and operating expenses. Looking ahead, macroeconomic uncertainties from geopolitical tensions may pressure trade finance and securities services activity, although heightened market volatility should continue to support FIC-related income, as seen in 1Q 2026. 

Earnings remain inherently sensitive to market fluctuations in view of the Bank’s trading and market-making activities. However, its common equity tier-1 capital ratio of 19.0% as at end-December 2025 provides a sturdy buffer against earnings volatility and potential asset quality stress. 


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