RAM reaffirms Maybank Investment Bank’s AAA rating

KUCHING: RAM Ratings has reaffirmed Maybank Investment Bank Berhad’s (Maybank IB) AAA/ Stable/ P1 financial institution ratings, which is anchored by its expectation of ready parental support from Malayan Banking Bhd (Maybank), if needed.

As Maybank IB is a core component of the group’s investment banking arm, it is deemed highly strategic to the latter.

Maybank IB boasts a prominent franchise in the investment banking scene in Malaysia, where it consistently ranks among the top three names in the league tables for the domestic debt and equity markets.

Its ability to leverage Maybank’s larger balance sheet as well as regional footprint has enabled the Bank to secure several cross-border transactions in recent years.

Outside Malaysia, the Group is chiefly represented in the stockbroking space in Thailand (where it is consistently among the leading stockbrokers by trading value), the Philippines, Singapore, Indonesia, Vietnam and Hong Kong.

As an integral part of the Maybank Kim Eng franchise, Maybank IB plays an important role in the Group’s vision to become a leading wholesale bank in Asean.

On the back of a stronger deal flow and increased share trading activities, the Bank’s earnings jumped 77 per cent to RM140.2 million in fiscal year 2017.

“That said, a slowdown in such activity in the lead-up to the 14th general election saw Maybank IB’s pre-tax profit slide to RM61.1 million in the first nine months of fiscal year 2018.

“Such earnings volatility is inherent in all investment banks as their performance is highly reliant on market conditions and investor sentiment.”