[RAM] RAM Ratings affirms Bank of China (Malaysia)'s AAA rating

RAM Ratings has affirmed Bank of China (Malaysia) Berhad’s (BOCM or the Bank) AAA/Stable/P1 financial institution ratings. The affirmation incorporates our view that financial support from its immediate parent, Bank of China (Hong Kong) Limited (BOCHK or the Group), is highly likely if required. This is underpinned by BOCM’s full ownership by BOCHK, its ultimate ownership by Bank of China Limited, and its strategically importance to the Group’s Southeast Asian operations.

BOCM’s asset quality remains resilient, underpinned by a strong borrower base which includes government-linked entities and large corporates. As at end-June 2026, its gross impaired loan ratio (GIL) eased to 2.4% from 3.0% as at end December 2024, driven by stronger recoveries and higher write-offs. The credit cost ratio stayed benign at an annualised 9 bps for 6M FY Dec 2026, compared to 12 bps a year earlier. Including regulatory reserves, GIL improved to 116.0% (end-December 2024: 81.5%).

BOCM maintained healthy profitability despite margin pressure following policy rate cuts by the US Federal Reserve and Bank Negara Malaysia in 2025. Its three-year average return on risk-weighted assets rose to 2.2% from 2.0% on the back of business growth, low credit costs and stronger operating efficiency. We expect continued balance sheet growth and benign credit costs to support earnings in fiscal 2026.

BOCM’s capital position is robust, with an adjusted common equity tier-1 ratio of 16.5% as at end-June 2026, providing ample capacity to absorb losses and support growth.


Analytical contacts
Sean Lim, CFA
(603) 2708 8253
sean@ram.com.my

Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my

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