PETALING JAYA: RHB Bank
Bhd is poised for another round of strong earnings growth in the ongoing fourth quarter (4Q25), after its quarterly net profit rebounded to a record high of RM904mil in the 3Q25 ended September.
The fourth-largest banking group by assets is looking for a “strong showing in 4Q25” as it builds up its business banking books to meet its return on equity (ROE) target, Kenanga Research said in a note to clients.
Meanwhile, CGS International (CGSI) Research has forecast RHB’s net profit to grow 12% year-on-year (y-o-y) to RM934.9mil.
The earnings catalysts for 4Q25 would include y-o-y increases in net interest and non-interest income, as well as a potential y-o-y drop in loan-loss provisioning, it said.
“In our report dated Nov 11, 2025, we stated that we expected an upswing in RHB’s net profit for the second half of the financial year 2025.
“Indeed, its 3Q25 net profit rebounded by a strong 12.5% quarter-on-quarter (q-o-q) to a record-high quarterly net profit of RM904mil, aided by a 97.4% q-o-q jump in Islamic banking income and a 92% q-o-q plunge in loan-loss provisioning,” added CGSI Research.
Overall, for the nine-month period ended September 2025 (9M25), RHB’s earnings were within expectations, accounting for 77% of Bloomberg consensus estimate.
TA Research pointed out that RHB’s outlook will be supported by an improving net interest margin (NIM) as funding costs reprice, higher net interest income, and additional fee contributions from corporate loan drawdowns and bancassurance.
“Management continues to guide for a full-year ROE of 10.4%-10.8%, underpinned by healthy loan pipelines. Loan growth will continue to be anchored by mortgages and commercial banking, although large corporate loan repayments may create some quarterly volatility.”
The research house also noted that the recovery of RHB’s NIM will hinge on optimising the cost of funds and steering asset growth toward higher-margin retail and commercial segments.
Current account-saving account growth initiatives, including targeted products such as “MySiswa” and enhanced multi-currency debit offerings, are expected to further support funding cost improvements.
