RHB Bank (RHBBANK) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 rose 7.0% year-over-year to RM1.6 billion, driven by higher net fund based income and improved credit costs, partially offset by lower non-fund based income and higher operating expenses and taxes.

• Gross loans and financing grew 5.9% year-over-year to RM241.4 billion, mainly from mortgage, corporate, commercial, and auto finance segments.

• Customer deposits increased 4.4% year-over-year to RM250.9 billion, with CASA ratio at 28.3%.

• Interim dividend of 15 sen per share declared, consistent with prior years.

• Gross impaired loans ratio improved to 1.51% from 1.76% a year ago.

Financial highlights

• Net fund based income increased 5.3% year-over-year to RM3.0 billion, while non-fund based income declined 10.8% to RM1.2 billion.

• Operating expenses rose 2.1% year-over-year to RM1,986.2 million; cost-to-income ratio at 47.3%.

• Net allowance for credit losses dropped to RM195.2 million from RM359.9 million a year ago; credit cost improved to 18 bps in H1 2025 from 32 bps in H1 2024.

• Q2 2025 total income improved 5.2% quarter-over-quarter to RM2.2 billion.

• Basic EPS for six months ended 30 June 2025 was 35.64 sen, up from 33.74 sen year-over-year.

Outlook and guidance

• Management remains cautiously optimistic for the remainder of 2025, focusing on executing the PROGRESS27 strategic roadmap.

• The banking sector is expected to remain resilient, supported by strong capital and liquidity positions.

• OPR cut anticipated to have mild impact on net interest income, cushioned by lower statutory reserve requirements.

• Second interim dividend will be considered based on year-end performance.