Export-Import Bank of Malaysia Berhad (EIBMAL)

At present, MEXIM should be treated as a highly rated policy-finance quasi-sovereign on a Malaysian government and BPMB support-inclusive basis, despite weak standalone financials. The 2024 results show profitability and strong capital ratios, but the 40.77% gross impaired loan ratio, 100.6% LCR and expected large write-off in 2025 mean the standalone profile remains in the process of repair.

The main basis for support-inclusive credit quality is that MEXIM is a policy-finance institution responsible for exports, imports, overseas investment, credit insurance and takaful, and since May 2025 has been a wholly owned subsidiary of BPMB, which is wholly owned by MOF Inc. RAM views MEXIM as almost certain to receive government support, either directly or through BPMB, and there is a track record of past capital support. This lifts issuer credit quality well above the standalone financial profile.

Asset quality and liquidity, however, remain constraints. The gross impaired loan ratio at end-2024 was very high, net interest income was weak, and the earnings improvement included ECL write-backs and other income. RAM's expected improvement to a GIL ratio below 10% is important, but it should not be treated as an actual result until confirmed in FY2025 audited financial statements. LCR is also close to the minimum, and recovery in short-term liquidity headroom should be confirmed.