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RAM Ratings affirms Koperasi Co-opbank Pertama Malaysia
Published on 12 May 2026.
RAM Ratings has affirmed Koperasi Co-opbank Pertama Malaysia Berhad’s (CBP or the Group) A3/Stable/P2 financial institution ratings.
The affirmation reflects CPB’s sound asset quality and strong loss absorption capacity, balanced by its small franchise, portfolio concentration, and weaker funding and profitability profile relative to peers. The ratings also incorporate a ‘moderate’ likelihood of extraordinary government support, underpinned by CPB’s position as the second largest of Malaysia’s five premier cooperatives.
The Group’s asset quality benefits from a predominantly salary-deduction personal financing (PF), which accounted for around 77% of total financing and typically supports stable repayment performance. As at end-December 2025, the gross impaired financing (GIF) ratio stayed stable at 1.7%, with adequate GIF coverage of 100.1%. That said, we see potential for some near-term slippage from a legacy corporate exposure and seasoning risks following rapid portfolio growth (3-year compounded annual growth rate: 18.6%).
Funding continues to be wholesale-led, exposing the Group to market conditions and depositor concentration. These risks are partially mitigated by long-standing relationships with major depositors – mostly government-linked entities – and a strong liquidity position. However, the funding profile remains a relative credit weakness and could become more constrained if system liquidity tightens or deposit competition intensifies.
Profitability remains modest, with CBP’s net financing margin narrowing to 2.0% in FY Dec 2025, reflecting the July overnight policy rate cut, intense deposit competition and strong growth in lower-yielding, collateral-backed financing (such as home financing and Ar-Rahnu). As a result, pre-tax return on assets and return on risk-weighted assets remained weak at 1.0% and 1.5%, respectively, limiting internal capital generation capacity. Capitalisation remains a key credit strength, notwithstanding some moderation, with the estimated post-dividend tier-1 capital ratio at 19.4% as at end-December 2025 (end-December 2024: 21.7%), providing a meaningful buffer against potential asset quality stress.
The Consumer Credit Act, which came into effect on 1 March 2026, is not expected to materially affect CBP’s credit profile in the near term, although the Group remains susceptible to potential regulatory or industry-wide changes, given its significant PF exposure.
Analytical contacts
Hani Hamizah Nor Hashim
(603) 2708 8240
hani@ram.com.my
Sean Lim, CFA
(603) 2708 8253
sean@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.
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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
Published by RAM Rating Services Berhad
© Copyright 2026 by RAM Rating Services Berhad
