KUALA LUMPUR: RHB Bank Bhd recorded a net profit of RM3.36 billion for financial year 2025 (FY25), an increase of 7.8% from RM3.12 billion a year earlier, driven by higher total income, disciplined cost management and lower expected credit losses (ECL).
Net interest income grew 3.9% to RM6 billion, supported by gross loan growth and lower funding cost, while non-interest income declined 2.1% to RM2.8 billion on lower net gain on foreign exchange and derivatives, and brokerage income.
Net interest margin stood at 1.88% with liability management initiatives. In terms of asset quality, gross impaired loans improved by six basis points to 1.41% at the end of 2025.
The bank’s common equity Tier 1 capital ratio improved to 15.2% post-dividend. Dividends declared totalled 50 sen per share for 2025, up from 43 sen for 2024.
For the fourth quarter, net profit rose 8.5% to RM905.71 million from a year earlier, driven by an increase in non-interest income and sharply lower provisions.
Revenue for the quarter decreased 1.7% to RM4.50 billion from RM4.58 billion in the corresponding quarter last year.
A dividend of 35 sen per share was declared, representing a dividend payout ratio of 65%.
CEO Datuk Mohd Rashid Mohamad said the group’s performance in 2025 has enabled it to raise its dividend payout guidance to between 50% and 60%, from the previous 30% to 50%.
“Sixty-five per cent this year is on the back of our good results for 2025. The conclusion of our bancassurance deal, which we have shared with the media, has also allowed us to pay a slightly higher dividend for 2025,” he said at RHB Banking Group’s Q4 FY25 financial results media briefing yesterday.
Mohd Rashid said the bank expects NIM (net interest margin) to improve in 2026, supported by stronger Casa (current account savings account) levels to sustain margin stability and potential expansion. “We have shown good momentum in 2025, where our Casa ratio increased to more than 30%.”
Among the initiatives under its Progression programme were the expansion of its multi-currency account (MCA), which contributed to Casa growth, and the MySiswa project, which has delivered strong Casa inflows.
“We started with 20 public universities and have expanded to private and GLC-linked universities. This will help sustain the momentum we are seeing and expect to continue into 2026,” Mohd Rashid said.
FY2025 marked solid progress for the group, supported by a sustained performance across its core businesses and continued emphasis on operational discipline, he said. “It was also shaped by our efforts to enhance service quality and strengthen the overall customer experience.”
In 2026, Mohd Rashid said, its priority will be on quality growth while accelerating innovation that further improves security, convenience and the way it serves customers.
RHB is targeting a return on equity (ROE) of between 10.8% and 11% in FY26, slightly higher than the 10.5% achieved in FY2025.
RHB is aiming for 5% to 6% loan growth this year, with a focus on higher-yield segments. Growth will be driven mainly by SME, retail and commercial banking, while the group will continue to participate in the corporate segment.
RHB aims to maintain its Casa ratio at or above 30% in FY26, underscoring its focus on preserving low-cost funding to defend margins.
Asset quality is expected to remain stable, with the gross impaired loans ratio targeted at between 1.35% and 1.40%, compared with 1.41% recorded in FY25.
The bank is guiding for a cost-to-income ratio of between 46% and 47%, suggesting modest improvement in operational efficiency after missing its FY2025 cost target.
NIM is projected to improve to between 1.83% and 1.86%, up from 1.80% in FY25.
With liability management adjustments, NIM is targeted at between 1.91% and 1.94% in FY26.
Credit cost is expected to remain stable at between 13 and 14 basis points, broadly in line with the 13 basis points recorded in FY25.
