Malaysian banks’ impaired loans rose in January

Loan loss coverage ratio dipped to 128.6% from 129% previously.

Malaysian banks’ gross impaired loans ratio rose to 1.5% in January 2025, from 1.4% a month earlier, according to data from the Bank Negara Malaysia (BNM).

The net impaired loans ratio remained at 0.9%.

Banks’ loan loss coverage ratio—including regulatory reserves— fell slightly to 128.6%, compared to 129% in December 2024.

The aggregate Liquidity Coverage Ratio is 157% in January 2025.

The aggregate loan-to-fund ratio was 83.4%.

The banking asset quality remains sound and liquidity position healthy, according to the BNM.