Moody’s Ratings has affirmed Malayan Banking Berhad’s (Maybank) A3 long-term and P-2 short-term foreign currency deposit ratings, maintaining a stable outlook. This decision underscores Maybank’s robust position in Malaysia and its consistent risk management practices. The affirmation also includes Maybank’s senior unsecured foreign currency rating and its medium-term note programme.
Maybank’s Baseline Credit Assessment (BCA) remains at a3, reflecting its solid solvency and liquidity metrics, which are expected to stay stable over the next 12 to 18 months. Despite potential risks from evolving US tariffs on Malaysia and other Asian countries, Moody’s anticipates limited direct impact on Maybank due to its minimal exposure to US exporters. The bank’s problem loans ratio is projected to remain steady at 1% to 1.5%, supported by strong asset quality in Malaysia and Singapore.
Maybank’s return on tangible assets is expected to remain around 1% over the next 12 to 18 months, with net interest margins stabilised by interest rate hedging and recent central bank policy adjustments. The bank’s strategic technology investments will keep its cost-income ratio elevated, but its strong loan-loss reserves will help manage credit costs effectively.
The bank is well-capitalised, with a Common Equity Tier 1 capital ratio of 14.9% and a liquidity coverage ratio of 135.7% as of 31 March 2025, well above regulatory requirements. An upgrade of Maybank’s ratings is unlikely due to their alignment with Malaysia’s sovereign rating. However, a downgrade could occur if the bank’s problem loans ratio significantly increases or its return on tangible assets declines.
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