RHB Bank

[winston]

A new banca agreement

A positive development

That RHB has a new banca agreement in place is positive as
a) it settles an outstanding dispute,
b) it accords MYR1.6b to RHB and
c) it is potentially earnings accretive by ~2% to FY26E earnings.

HOLD maintained, pending the release of its 2Q25 results (on Thurs 28 Aug) with an unchanged TP of MYR7.10 (FY25 PBV: 0.9x. COE: 9.6%. R0E: 9.2%, LT growth: 4%).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/475021.pdf

[winston]

vested

A fixed and variable portion to its banca agreement

A potentially larger-than-expected impact to earnings

Latest information from RHB suggests that if performance targets are hit, RHB could potentially recognize net income of up to MYR130m p.a. from its new banca agreement, which is a higher ~+3% to FY26E net profit (versus our earlier assessment of ~+2%).

HOLD maintained, pending the release of its 2Q25 results (on Thurs 28 Aug) with an unchanged TP of MYR7.10 (FY25 PBV: 0.9x. COE: 9.6%. R0E: 9.2%, LT growth: 4%).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/476016.pdf

[winston]

vested

RHB Bank’s 2Q net profit rises 11%, declares 15 sen dividend

KUALA LUMPUR (Aug 28): Malaysia’s fourth-largest bank by assets RHB Bank Bhd (KL:RHBBANK) said its net profit rose 11% in the second quarter from a year earlier, thanks to higher non-interest income and lower provisions.

Net profit for the three months ended June 30, 2025 (2QFY2025) was RM803.50 million, or 18.43 sen per share, according to an exchange filing.

Allowances for credit losses fell 38% year-on-year to RM89.44 million.

A dividend of 15 sen per share was also declared. The date of entitlement and payment will be announced later.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/768535

[winston]

vested

2Q25: Underpinned By Robust Non-interest Income

RHB Bank’s 2Q25 results are in line, supported by strong non-interest income growth and lower provisions.

PPOP rose a solid 6% qoq.

We maintain BUY with a target price of RM7.55 (0.96x 2026F P/B, 10.0% ROE).

The stock trades at an attractive 0.82x P/B, well below the sector average of 1.10x, despite a comparable 10% ROE.

Dividend yield remains strong at 7%, supported by a robust CET1 ratio of 16%

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

Sizable net profit growth targets for 2H25F

RHB Bank’s 1H25 net profit was within expectations, accounting for 48.5% of both our and Bloomberg consensus’ full-year estimates.

We project 2H25F net profit to decline marginally by 1.1% yoy, due to the negative impact from the OPR cut.

Reaffirm Add premised on improvements in its operating efficiency and our projection of an ROE expansion in FY25-27F.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 95850304F3

[winston]

not vested

1066 RHBBANK (BUY)
Firm loans growth outlook

RHB’s 9M25 core earnings rose 7.5% YoY, in line with expectations, supported by lower credit provisions and investment recoveries despite flattish revenue growth.

NIM compressed 4bps QoQ, though loans and deposits expanded 7.9% and 6.5% YoY, with asset quality stable backed by a steady GIL ratio of 1.50%.

All in, we continue to like RHB for being a generous dividend paymaster, providing attractive yields of >6%.

Also, RHB is a relatively inexpensive KLCI index banking component.

Besides, its elevated FVOCI reserve allows flexibility to crystalize investment gains, making it an earnings buffer during periods of softness.

Retain BUY and GGM-TP of RM7.70, based on 0.96x FY26 P/B.

Source: HLIB

[winston]

not vested

3Q25 results above expectations

Upgrade to BUY RHB’s 9M25 results were above expectations, largely on account of lower than-expected impairment allowances.

Our FY25-27E earnings forecasts are raised by 4-5%.

We roll forward valuations and raise our TP to MYR7.80 (FY26E PBV: 0.96x, COE: 10.1%, ROE: 9.9%, LT growth: 4%) from MYR7.20 before.

Upgrade to BUY, dividend yields of >6% provide support.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/501490.pdf

[winston]

not vested

1066 RHBBANK (BUY)
On a firmer footing

RHB’s FY25 core net profit rose 7.8% YoY to RM3.4bn, beating expectations, mainly driven by lower-than-expected credit provisions.

4Q25 earnings were stable QoQ and grew 8.5% YoY, supported by improving fee income and resilient NII.

Asset quality strengthened, with GIL declining to 1.41% and healthy coverage maintained.

Management remains constructive on FY26, guided by 13–14bps credit cost and steady loan growth.

Capital remains robust, supporting a sustainable c.60% payout and attractive dividend yield.

Upgrade to BUY with a higher GGM-TP of RM9.10.

Source: HLIB

[winston]

not vested

1066 RHBBANK (BUY)
On a firmer footing

RHB’s FY25 core net profit rose 7.8% YoY to RM3.4bn, beating expectations, mainly driven by lower-than-expected credit provisions.

4Q25 earnings were stable QoQ and grew 8.5% YoY, supported by improving fee income and resilient NII.

Asset quality strengthened, with GIL declining to 1.41% and healthy coverage maintained.

Management remains constructive on FY26, guided by 13–14bps credit cost and steady loan growth.

Capital remains robust, supporting a sustainable c.60% payout and attractive dividend yield.

Upgrade to BUY with a higher GGM-TP of RM9.10.

Source: HLIB

[winston]

not vested

1066 RHBBANK (BUY)
Buffering volatility

RHB posted 1Q26 net profit of RM856.8m (-5.4% QoQ, +14.2% YoY), in line with expectations, driven by resilient earnings momentum and broad-based income growth.

YoY performance was strong, driven by higher NII and NOII alongside lower provisioning, while QoQ earnings softened due to normalisation in trading and forex income as well as higher credit charges.

Looking ahead, management remains cautiously optimistic, reaffirming FY26 targets, with earnings resilience anchored on disciplined execution, stable margins, and continued balance sheet optimisation.

Maintain BUY with GGM-TP of RM9.10.

Source: HLIB