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RAM Ratings affirms BNP Paribas Malaysia’s AA1 rating
Published on 18 Sep 2025.
RAM Ratings has affirmed BNP Paribas Malaysia Berhad’s (the Bank) AA1/Stable/P1 financial institution ratings.
The affirmation underscores our belief that the Bank is highly likely to receive parental support from BNP Paribas SA (the Group), one of the world’s largest financial institutions and among the global systemically important banks. BNP Paribas SA has on multiple occasions demonstrated solid funding and capital support, given the Bank’s strategic importance to the Group.
The ratings also reflect the Bank’s healthy asset quality and solid liquidity buffers. Capitalisation, having moderated on account of robust market-related activities, remains adequate. The Bank’s relatively small stature and volatile trading income continue to weigh on its ratings.
BNP Paribas Malaysia forms part of the Group’s footprint in Asia Pacific. While contributing only 9% of the Group’s aggregate revenue, the region is identified as an area for further growth and investment. As part of the larger BNP Paribas SA, the Bank can leverage on the former’s global franchise, international network and technical expertise in wholesale banking.
In FY Dec 2024, the Bank’s pre-tax profit rose 24% y-o-y to RM117.8 mil, translating to a higher return on risk-weighted assets of 2.7%. The improvement was mainly driven by growth in the Transaction Banking and Global Markets businesses, backed by a growing client franchise and favourable market conditions. The Transaction Banking business’ softer 1Q fiscal 2025 performance, however, led to a modest pre-tax profit of RM24.6 mil (-22% y-o-y). Sustained strong demand for Malaysian sovereign bonds should boost earnings of the Global Markets segment, as observed in 1H 2025.
BNP Paribas Malaysia’s income stream remains inherently volatile in view of its focus on wholesale banking, encompassing derivative transactions and market-making activities. This is partly mitigated by the growing Transaction Banking business, a more stable income source. The operating revenue contribution from this segment stood at 48% in fiscal 2024, up substantially from just 12% four years prior.
Analytical contacts
Sean Lim, CFA
(603) 2708 8253
sean@ram.com.my
Jeremy Noel Paul
(603) 2708 8230
jeremynp@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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