MARC Ratings has maintained its MARCWatch Developing status on Kuwait Finance House (Malaysia) Berhad (KFH Malaysia), under surveillance since 1 August 2024, after the bank’s decision to voluntarily exit the Malaysian market and wind down operations as part of parent KFH Group’s strategy to focus on the Middle East region.

MARC Ratings considers KFH Malaysia to be on sound financial footing to complete the wind-down. The expected completion date has been revised to 4Q2026 to allow for the sale and transfer of the bank’s asset portfolios, and the bank has made significant progress in offboarding its corporate portfolio. MARC Ratings will continue to monitor developments until the wind-down is complete.