MARC Ratings has maintained its MARCWatch Developing status on Kuwait Finance House (Malaysia) Berhad (KFH Malaysia), where the bank has been placed under this surveillance since 1 August 2024. The action follows KFH Malaysia’s decision to voluntarily withdraw from the Malaysian market and wind down its banking business in the country, in line with its parent KFH Group’s strategic review to focus on the Middle East region.

MARC Ratings opines that KFH Malaysia is on sound financial footing to complete the winding down process. The rating agency notes the exercise is expected to progress past 1Q2026 to allow for operationalisation of the sale and transfer of the bank’s asset portfolios. MARC Ratings will continue to closely monitor developments until such wind-down is completed.