RAM Ratings has assigned AAA/Stable/P1 financial institution ratings (FIRs) to OCBC Al-Amin Bank Berhad and affirmed OCBC Bank (Malaysia) Berhad's (OCBC Malaysia or the Bank) FIRs. OCBC Al-Amin's FIRs are equalised with those of OCBC Malaysia, reflecting RAM's assessment of a 'very high' likelihood of extraordinary support given its highly strategic role as the Bank's Islamic banking platform. 

The affirmation of OCBC Malaysia's FIRs is premised on its strong domestic franchise and healthy credit metrics. We view the Bank as a core subsidiary of Oversea-Chinese Banking Corporation Limited (the Group), given its integral role in supporting the Group's regional expansion and diversification ambitions, as well as its position as one of the Group's largest contributors outside Singapore. Accordingly, we believe that the likelihood of extraordinary parental support, if required, is 'very high'. Nevertheless, no rating uplift is warranted given the Bank's already strong stand-alone credit profile.

The Bank's asset quality continued to strengthen in 2025 and 3M 2026, supported by improved loan recoveries and healthy borrower repayment performance. Its headline gross impaired loan (GIL) ratio declined to a multi-year low of 1.3% as at end-March 2026 (end-December 2024: 2.1%), while the adjusted GIL ratio - which excludes impaired retail financing less than 90 days past due - receded to 1.0% (end-December 2024: 1.7%). Both indicators outperformed the industry average, underscoring a sustained improvement and marked turnaround in the Bank's asset quality profile. 

OCBC Malaysia expects credit costs to settle at a more normalised level for full-year 2026 (3M 2026: annualised 30 bps), reflecting a more cautious provisioning stance in response to heightened global uncertainties. While higher relative to the negligible impairment charges and net writebacks recorded over the past two years, we view the increase to be manageable considering the Bank's strong earnings-gener