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RAM Ratings affirms Deutsche Malaysia at AAA
Published on 09 Jul 2025.
RAM Ratings has affirmed Deutsche Bank (Malaysia) Berhad’s (Deutsche Malaysia or the Bank) AAA/Stable/P1 financial institution ratings.
The affirmation reflects Deutsche Malaysia’s entrenched position in the domestic wholesale banking arena – particularly in fixed income and currencies (FIC) – the Bank’s solid liquidity profile, sound risk management and robust capitalisation which afford ample headroom against earnings volatility. The ratings also incorporate an uplift based on our view under RAM’s group support criteria that Deutsche Malaysia is highly likely to receive parental support from Deutsche Bank AG (the Group) in times of need. Deutsche Malaysia remains a strategically important entity of the Group. Deutsche Bank AG has delivered a more stable and profitable business following the successful implementation of its business transformation plan, closing the gap with industry peers.
Deutsche Malaysia’s pre-tax profit rose 7% to RM298.1 mil in FY Dec 2024 (FY Dec 2023: RM279.3 mil), mainly driven by the stronger performance of its cash management business amid increased client activity. This pushed up its return on risk-weighted assets to 3.7% (FY Dec 2023: 3.5%). However, US trade tariffs may dampen business volume in Deutsche Malaysia’s Corporate Bank division this year as clients take time to recalibrate their strategies. The heightened market volatility should boost earnings of the FIC segment, as observed in 1H 2025.
Given its heavy involvement in trading and market-making activities, Deutsche Malaysia’s profitability is highly sensitive to market fluctuations. The Bank’s common equity tier-1 capital ratio of 20.9% as at end-December 2024 serves as a sturdy loss absorption buffer against earnings volatility.
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
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.
Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
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