RHB Bank (RHBBANK) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly net profit of RM833 million in Q3 2024, with 15.4% sequential growth and 2.9% year-over-year increase to RM2.3 billion for 9M 2024, driven by higher non-fund based income, increased net funding income, lower tax expense, and reduced share of loss in associates, partially offset by higher allowances for credit losses and operating expenses.

• Total assets increased 2.8% from December 2023 to RM337.9 billion, with shareholders' equity at RM31.7 billion and net assets per share at RM7.28 as of 30 September 2024.

• Gross loans and financing grew 3.7% year-over-year to RM227.5 billion, mainly from mortgage, commercial, auto finance, and SME segments.

• Cost-to-income ratio improved to 46.0% from 47.1% a year ago, reflecting disciplined cost management.

• Asset quality remained stable with GIL ratio at 1.75%–1.77% and loan loss coverage (incl. regulatory reserves) at 106.4%.

Financial highlights

• Net profit for 9M 2024 reached RM2.3 billion, up 2.9% year-over-year; normalised net profit (excluding prior year overlay writeback) grew 16.7%.

• Net fund based income increased 5.2% year-over-year to RM4,321.2 million, supported by loan and financing growth.

• Non-fund based income surged 26.4% to RM2,073.1 million, led by gains in foreign exchange, derivatives, trading, investment income, fee income, a one-off gain on subsidiary disposal, and higher insurance income.

• Net interest margin (NIM) strengthened to 1.87% (1.98% including liability management initiatives), up 5 bps year-to-date.

• Customer deposits rose 0.9% to RM238.3 billion, with CASA composition at 28.0%.

Outlook and guidance

• Focus remains on optimising cost of funds, managing asset quality, and containing operating expenses for the remainder of the year.

• Malaysia's economic outlook remains positive, with robust growth expected in Q4 2024, supported by strong trade, manufacturing, and resilient domestic demand.

• Banking industry anticipated to remain resilient, underpinned by strong capital and liquidity positions; OPR expected to remain supportive.

• The Group will focus on prudent business growth in preferred segments, maintaining asset quality and operational efficiency.

• New corporate strategy to be announced as TWP24 concludes.