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RAM Ratings affirms Citibank Berhad at AAA
Published on 15 Dec 2025.
RAM Ratings has affirmed Citibank Berhad’s (Citibank or the Bank) AAA/Stable/P1 financial institution ratings in view of its strong wholesale banking franchise, superior funding and liquidity, healthy profitability and asset quality, and solid capital buffer.
The ratings also incorporate a high likelihood of parental support from Citigroup Inc (the Group), given the Bank’s strategic importance in the Group’s operations in Asia and its ongoing access to intragroup liquidity.
While pre-tax profit dipped 5% y-o-y in 9M FY Dec 2025 due to lower fees, higher operating costs and impairment charges, Citibank maintained a commendable annualised return on risk-weighted assets of 6.5% (FY Dec 2024: 7.1%). Profitability is expected to remain strong, supported by bespoke solutions for top-tier clients and a lean cost structure.
Citibank has a low-risk profile, with 37% of assets in low-risk Malaysian government securities. Gross loans formed 14% of its asset base, mainly constituting revolving credits and short-term trade finance facilities. With a gross impaired loan ratio of 0.6% as at end-September 2025, the Bank’s lending book remains healthy. The second-order impact of US trade tariffs could pose asset quality risks, but the top-tier domestic names and multinational companies that make up Citibank’s clients provide reassurance.
Customer deposits were stable as at end-September 2025, with 91% comprising current and savings accounts deposits, largely sourced from the Bank’s cash management and transactional banking businesses. Citibank’s capitalisation stayed strong with a common equity tier-1 capital ratio of 18.2%, providing an ample buffer against trading-related 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
© Copyright 2025 by RAM Rating Services Berhad
