CreditSights keeps ‘market perform’ ratings on Malaysia’s big three banks

KUALA LUMPUR, 23 AUGUST 2026 —

CreditSights Maintains ‘Market Perform’ Ratings on Malaysia’s Top Banks

CreditSights highlighted Maybank’s “market perform” rating, attributing it to the bank’s profitability alongside comfortable capital, liquidity, and asset quality metrics. The firm noted that Maybank has issued callable Formosa bonds to Taiwanese investors, though it assesses the bank primarily on fundamentals rather than relative value.

CIMB Bank received a similar rating, with CreditSights pointing to its healthy capital and profitability, strong operating momentum, and effective management of Covid-19 restructured loans. The bank’s geographical diversification across key ASEAN markets, particularly in Indonesia and Thailand, was also noted as a strength. CreditSights added that CIMB’s asset quality has improved in recent years, contributing to its stable outlook.

For RHB Bank, CreditSights acknowledged stronger capital ratios compared to CIMB but flagged concerns over asset quality, credit costs, and overall returns. The research firm described RHB’s target return on equity (ROE) of over 10% for the financial year 2024 (FY2024) as ambitious, noting that the bank achieved 9.4% in the first half of 2024 (H1 2024). CreditSights expects similar performance in the second half of the year.

In contrast, CIMB delivered a steady improvement in ROE, reaching 11.4% in H1 2024, aligning with its FY2024 target range of 11% to 11.5%. CreditSights noted that while the spread differential between CIMB and Maybank is slightly wide, liquidity in CIMB’s bonds may be limited due to their dated issuance. Maybank, meanwhile, does not have any outstanding liquid senior benchmark bonds.

The ratings come amid a broader assessment of Malaysia’s banking sector, which has shown resilience despite global economic uncertainties. CreditSights’ analysis underscores the banks’ ability to maintain profitability and asset quality, though challenges remain in balancing growth with risk management.

Malaysia Market Impact The ratings are likely to reinforce investor confidence in Malaysia’s banking sector, which plays a critical role in the country’s financial system. Maybank, CIMB, and RHB collectively dominate the domestic market, and stable ratings from CreditSights may support continued investment in the sector.

Analysts suggest that the banks’ strong capital positions and prudent risk management will help them navigate potential economic headwinds, including rising interest rates and geopolitical risks. However, the divergence in performance between CIMB and RHB—particularly in ROE and asset quality—may influence investor preferences moving forward.

Sector and Company Specifics Maybank, CIMB, and RHB are key players in Malaysia’s financial landscape, with Maybank being the largest bank by assets. CIMB has expanded its regional footprint, particularly in Indonesia, while RHB has focused on domestic operations but faces pressure to improve returns.

CreditSights’ assessment highlights the importance of geographical diversification for Malaysian banks, particularly in high-growth ASEAN markets. The firm’s emphasis on asset quality and capital adequacy reflects broader industry trends, where banks are prioritizing stability over aggressive expansion.

Outlook CreditSights’ ratings suggest a cautiously optimistic outlook for Malaysia’s banking sector, with Maybank, CIMB, and RHB expected to maintain stable performance in the near term. However, the research firm’s cautionary notes on RHB’s ambitious ROE targets and CIMB’s bond liquidity underscore the need for continued vigilance.

As Malaysia’s economy stabilizes post-pandemic, the banking sector’s ability to sustain profitability while managing credit risks will be closely watched. CreditSights’ ratings provide a benchmark for investors assessing the sector’s resilience in an evolving economic landscape.

Related: Maybank