[RAM] RAM Ratings assigns AA1/Stable/P1 ratings to Mizuho Malaysia

RAM Ratings has assigned financial institution ratings of AA₁/Stable/P1 to Mizuho Bank (Malaysia) Berhad (Mizuho Malaysia or the Bank). The Bank is a wholly owned subsidiary of Mizuho Bank Limited, the principal commercial banking entity of Mizuho Financial Group, Inc. (the Group) – one of the world’s largest financial groups.

The ratings incorporate a ‘high’ likelihood of extraordinary parental support, reflecting the Bank’s role within the Group’s Asia Pacific network. APAC is a strategic growth area for the Group, underpinned by strong regional trade and capital flows. On a standalone basis, the Bank’s credit profile is anchored by its superior asset quality and solid capital buffers, partly offset by its small presence and modest domestic franchise, soft profitability and high single-name concentration on both the loan and deposit bases.

The Bank’s prudent lending strategy, which focuses mainly on locally incorporated subsidiaries of Japanese corporates, multinational groups and top-tier domestic corporates, continues to support very strong asset quality, reporting zero impaired exposures as at end-December 2025. Despite strong credit expansion in recent periods, Mizuho Malaysia remains well capitalised. The Bank’s common equity tier-1 ratio moderated to 18.5% as at end-December 2025 (end-March 2025: 23.7%), reflecting the strong balance sheet growth and associate risk-weighted asset expansion.

Earnings stay supported by robust lending growth, improved treasury performance and minimal credit costs. Pre-tax profit rose to RM185.9 mil in FY Mar 2025 and RM163.5 mil in 9M FY Mar 2026 (FY Mar 2024: RM159.9 mil; 9M FY Mar 2025: RM144.1 mil). Nonetheless, the Bank’s conservative risk appetite and predominantly corporate book constrain margins and returns. The Bank’s margins and pre-tax return on risk-weighted assets remain below domestic peers, with three-year averages of 0.9% and 2.4%, respectively (peer averages: 1.7% and 4.3%).


Analytical contacts
Sean Lim, CFA 
(603) 2708 8253
sean@ram.com.my

Amira Shamsul, CFA 
(603) 2708 8242
syahira@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my