KUALA LUMPUR: RHB Bank
Bhd wrapped FY25 with a 7.8% earnings expansion over the year, on the back of higher total income, disciplined cost management and improved credit quality.
The bank said its net earnings in FY25 rose to RM3.36bil from RM3.12bil in the previous year. Annual revenue, however, was flattish at RM17.92bil as compared to RM17.91bil in FY24.
In the fourth quarter alone, net profit was RM905.71mil, up from RM834.54mil in the year-ago quarter while revenue slipped to RM4.5bil from RM4.58bil in the previous comparative quarter.
The bank declared a second interim dividend of 35 sen per share, bringing the total annual payout to 50 sen per share.
As per the bank's announcement, net fund-based income grew 3.9% year-on-year (y-o-y) to RM6bil. This was delivered on the back of 5.4% y-o-y growth in gross loans and lower funding cost. The bank's net interest margin with liability management stood at 1.88%.
The improved net fund-based income offset a 2.1% y-o-y decline in non-fund based income at RM2.8bil as the bank registered a lower net gain on forex and derivatives, brokerage income and gain in disposal of subsidiaries.
Additionally, RHB Bank sustained prudent cost discipline and maintained robust capital and liquidity positions, with cost growth contained at 3.3% and a cost-to-income ratio of 47.3%, while expected credit losses improved to RM214mil from RM535mil in FY24.
"FY2025 marked solid progress for the group, supported by a sustained performance across our core businesses and continued emphasis on operational discipline.
"It was also shaped by our efforts to enhance service quality and strengthen the overall customer experience," said group managing director and group CEO Datuk Mohd Rashid Mohamad.
He added the bank's priority in 2026 will be quality growth while accelerating innovation that further improves security, convenience and the way the bank serves its customers.
