PETALING JAYA: RHB Bank
Bhd has recorded a 14.2% rise in net profit to RM856.8mil for the first quarter ended March 31, 2026 (1Q26) compared to the same quarter a year ago, mainly due to improvements in higher non-fund-based income, higher net funding income and lower allowances for credit losses.
In a filing with Bursa Malaysia last Friday, the bank reported that non-fund-based income increased by 14.1% to RM640.1mil, contributed by higher fee income and higher net trading and investment income, partly offset by lower net gain on foreign exchange and derivatives and lower income from insurance business.
Net fund-based income increased by 4.6% to RM1.6bil on the back of gross loans and financing growth of 6.2% and lower funding cost while net allowance for credit losses decreased 14.6% to RM90.3mil primarily due to lower credit losses on loans and financing and higher writeback on financial investments at amortised cost.
The bank’s earnings for the quarter were also offset by higher operating expenses, higher tax expense and higher share of loss in associates.
Revenue was 2.7% lower at RM4.3bil in 1Q26 compared to a year ago.
In a media release, group managing director and group chief executive officer Datuk Mohd Rashid Mohamad noted that the operating environment continued to be shaped by global uncertainties, including geopolitical tensions, evolving trade dynamics and cautious market sentiment.
“Against this backdrop, we remain committed to supporting our customers while maintaining prudent financial discipline,” he said.
“We recognise that many businesses, particularly small and medium enterprises (SMEs), continue to navigate cost pressures and external uncertainties.
“We are supporting SMEs through targeted measures, including access to financing under Bank Negara Malaysia’s SME Stabilisation Relief Facility, supported by guaranteed schemes to enhance funding accessibility.
“This is complemented by streamlined processes, including a fast-track lane for eligible customers, as well as targeted repayment assistance through loan modifications, tenure extensions, and rescheduling or restructuring where needed,” he further said.
“This reflects our continued focus on helping businesses strengthen resilience, maintain operational continuity and position themselves for long term growth,” he added.
During the quarter, the bank’s cost-to- income ratio improved to 46.2% from 47.4% in the same quarter a year ago, as prudent cost discipline continued to be maintained, while sustaining healthy capital and liquidity positions.
The lender’s annualised gross loans increased 5.3% to RM254bil, attributed to a 4.6%, 2.7% and 15.4% growth in the community banking, corporate and business banking, and Singapore segments respectively.
Meanwhile, annualised customer deposits grew 9.5% to RM259bil, with the current account savings account ratio staying steady at 29.5%.
