Broker: Maybank Investment Bank Berhad
Date of Report: November 28, 2025
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- RHB Bank’s 3Q25 results exceeded expectations, mainly due to lower-than-expected impairment allowances and a writeback in corporate debt provisions, prompting an upgrade to BUY with a higher target price of MYR7.80.
- Loans grew 7.9% YoY, deposits rose 6.5% YoY, and asset quality remained stable with a gross impaired loans ratio of 1.5%; net interest margin contracted slightly due to an OPR cut, but credit cost was well-managed and capital ratios stayed robust.
- Management maintained FY25 targets for loan growth (5-6%), NIM (1.80-1.83%), cost/income ratio (45.5-46%), and ROE (10.4-10.8%), with expectations of continued low credit cost and margin improvement in 4Q25.
- FY25-27 earnings forecasts have been raised by 4-5% due to lower projected credit costs, and dividend yields above 6% are expected to provide share price support.
- The report notes potential risk from any economic slowdown in Malaysia, but underlying fundamentals remain strong with stable profitability and capital adequacy ratios.
Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : www.maybank.com/investment-banking
