RHB Bank (RHBBANK) Q4 2024 earnings summary

Executive summary

• Net profit for FY2024 rose 11.2% year-over-year to RM3.12 billion, achieving consecutive record quarterly profits in Q3 and Q4 2024, driven by higher non-fund-based and fund-based income, and lower tax expense, partially offset by higher operating expenses and credit losses.

• Total income rose 10.7% to RM8.6 billion, with total assets up 6.5% to RM349.9 billion and shareholders' equity at RM32.5 billion.

• Asset quality improved significantly, with GIL ratio declining to 1.47% from 1.74% and loan loss coverage rising to 78.6%.

• Launched new 3-year strategy, PROGRESS27, targeting ≥12% ROE, ≤44.8% CIR, and ≤1.3% GIL by 2027, aiming for leadership in profitability and customer service.

• Customer deposits rose 1.8% to RM249.6 billion, with CASA composition at 27.6%.

Financial highlights

• Net fund-based income increased 6.2% to RM5.8 billion; non-fund-based income surged 21.3% to RM2.8 billion; net interest income was RM3,869.3 million, and other operating income RM2,559.6 million.

• NIM strengthened to 1.86% (1.96% with liability management), up from 1.82% in FY2023.

• Cost-to-income ratio improved to 46.7% from 47.5% year-over-year.

• Loans grew 6.9% to RM237.8 billion, outpacing industry growth; deposits rose 1.8% to RM249.6 billion.

• Earnings per share (basic) for FY2024 was 72.02 sen, up from 65.69 sen.

Outlook and guidance

• FY2025 targets: ROE 10.4%-10.8%, loans growth 6.0%-7.0%, CIR 45.5%-46.0%, NIM 1.86%-1.90%.

• The Group will focus on defending NIM, growing asset base, improving CASA ratio, and maintaining strong capital and liquidity.

• Committed to consistent dividend payout ratio above 50%, subject to performance.