RHB Bank (RHBBANK) investor relations material

Executive summary

• Net profit rose 14.2% year-over-year to RM857 million, driven by higher total income, increased net fund-based and non-fund-based income, and lower expected credit losses, partially offset by higher operating expenses and tax.

• Return on equity improved to 10.2% from 9.2% year-over-year.

• Loans expanded 6.2% year-over-year to RM254 billion, with domestic loans up 4.0% and growth mainly from mortgages, Singapore, corporate, commercial, and auto finance.

• Customer deposits increased 4.0% year-over-year to RM258.5 billion, with CASA ratio steady at 29.5%.

• Asset quality remains stable, with a group gross impaired loan (GIL) ratio of 1.47% and domestic GIL at 1.28%, below the industry average.

Financial highlights

• Total income reached RM2.2 billion, up 7.2% year-over-year, with net fund-based income up 4.6% and non-fund-based income up 14.1%.

• Cost-to-income ratio improved to 46.2% from 47.4% year-over-year, reflecting ongoing cost optimization.

• ECL declined 14.6% to RM90 million, improving credit cost to 14 bps.

• Basic earnings per share increased 14.2% to 19.64 sen.

• Group CET1 ratio at 14.7% and total capital ratio at 17.1%.

Outlook and guidance

• Management remains committed to disciplined execution and proactive positioning for growth opportunities, with a focus on risk management amid global macroeconomic risks.

• Asset quality will be closely monitored amid evolving macroeconomic risks.

• Cost optimization is on track, with RM220 million cumulative savings against a FY2026 target of RM300–350 million.

• Malaysia’s economic growth in 2026 is expected to moderate due to external uncertainties, but domestic demand and stable trade conditions should support growth.