[RAM] RAM Ratings affirms BNP Paribas Malaysia's AA1 rating

RAM Ratings has affirmed BNP Paribas Malaysia Berhad’s (the Bank) AA₁/Stable/P1 financial institution ratings.

The affirmation is underpinned by our assessment of a ‘high’ likelihood of extraordinary parental support from BNP Paribas SA (the Group), reflecting the Group’s track record of funding and capital support and the Bank’s strategic importance to the Group.

The ratings also consider the Bank’s well-managed risk profile and strong liquidity. While capital ratios have moderated amid increased market-related activities and loan growth, management expects the common equity tier 1 capital ratio to stay around 13%, consistent with the Group’s capital-efficient strategy. Although lower than historical levels, this ratio remains adequate relative to the Bank's risk profile. Profitability remains sound but still lags that of higher-rated wholesale banking peers. The Bank’s relatively small scale and reliance on potentially volatile trading income also remain rating constraints.

For 1H FY Dec 2026, pre-tax profit declined 14.4% y-o-y to RM59.9 mil from RM69.9 mil, as trading and investment income normalised from the elevated levels recorded in the prior year. Consequently, its annualised return on risk-weighted assets fell to 2.07% from 2.61% in FY Dec 2025. Nonetheless, the Bank expects continued client activity and a healthy corporate lending pipeline to keep full-year 2026 earnings broadly in line with 2025 levels against a still-resilient domestic operating environment.


Analytical contacts
Amira Shamsul, CFA 
(603) 2708 8242
syahira@ram.com.my

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

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