RHB Bank (RHBBANK) Q4 2025 earnings summary

Executive summary

• Net profit for FY2025 rose 7.8% year-over-year to RM3.4 billion, driven by higher net fund-based income, disciplined cost management, and lower expected credit losses, despite increased operating and tax expenses.

• Total income increased 2.0% to RM8.8 billion, with non-fund based income up 9.1% and net interest income at RM3,880.2 million.

• Loans expanded 5.4% to RM251 billion, outpacing industry growth, with total assets up 2.3% to RM358.1 billion.

• CASA ratio improved to 30.4%, with customer deposits at RM252.5 billion.

• Dividend per share increased to 50 sen, with payout ratio at 65%.

Financial highlights

• Net profit increased 7.8% year-over-year to RM3.4 billion; ROE improved to 10.5%.

• Total income up 2.0% to RM8.8 billion; net fund-based income up 3.9%.

• Cost-to-income ratio increased to 47.3% from 46.7%; cost growth contained at 3.3%.

• Net allowance for credit losses dropped 60% to RM214.2 million; credit cost improved to 13 bps.

• Basic EPS for FY2025 was 77.13 sen, up from 72.02 sen in FY2024.

Outlook and guidance

• FY2026 targets: ROE of 10.8–11.0%, loans growth of 5–6%, CASA ratio ≥30%, NIM (with liability management) of 1.91–1.94%.

• Focus on high-yielding segments, repricing deposits, and sustaining healthy CASA mix.

• Asset quality expected to improve further, with GIL ratio targeted at 1.35–1.40%.

• Dividend payout ratio guidance raised to 50–60%, with potential to exceed 60% based on performance.

• Macroeconomic outlook for 2026 is positive, with growth driven by domestic demand and resilient trade.