Published on 10 Nov 2022.
RAM Ratings has reaffirmed BNP Paribas Malaysia Berhad’s (the Bank) AA1/Stable/P1 financial institution ratings.
The ratings reflect our expectation of ready parental support from BNP Paribas SA (the Group), one of the world’s largest financial institutions and among the globally systemically important banks. The Group has, on multiple occasions, demonstrated solid funding and capital support.
BNP Paribas Malaysia forms part of the Group’s footprint in Asia Pacific. The region, while contributing less than 10% of the Group’s aggregate revenue, is identified as an area for further growth and investment. In this regard, the Bank is able to leverage on the Group’s global franchise, international network and technical expertise in wholesale banking.
BNP Paribas Malaysia’s pre-tax profit slid to RM1.3 mil in FY Dec 2021 (2020: RM118 mil) as challenging market conditions weighed on its Global Markets business. In 1H 2022, the Bank reported RM5.8 mil in pre-tax profits (1H 2021: RM5.2 mil pre-tax loss). Earnings volatility is an inherent feature of the Bank’s business, given its focus on wholesale banking, which entails derivative transactions and market making activities. Its robust common equity tier-1 capital ratio of 22.6% as at end-June 2022 provides the Bank an ample loss absorption buffer to support its volatile trading activities. A highly liquid balance sheet also supports the ratings.
Lee Yee Von
(603) 3385 2503
(603) 3385 2619
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Ratings on BNP Paribas Malaysia Berhad