[RAM] RAM Ratings affirms Koperasi Co-opbank Pertama Malaysia's A3/P2 ratings

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.

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