Latest news with #MohdRashidMohamad
The Star
4 days ago
- Business
- The Star
RHB, Bank Islam to cut rates after OPR move
KUALA LUMPUR: RHB Banking Group will reduce its base rate (BR) and standardised base rate (SBR) by 25 basis points (bps), effective July 11, 2025 in line with Bank Negara's recent cut to the Overnight Policy Rate (OPR). In a statement, it said RHB Bank and RHB Islamic Bank's fixed deposit rates will also be adjusted downwards by 25bps. Similarly, lending and financing rates based on base lending rate (BLR) and base financing rate (BFR) will be reduced by 0.25%. RHB's SBR will be reduced to 2.75% per annum from 3.00%, while its BR will be lowered to 3.50% from 3.75%. The BLR and BFR will also be adjusted to 6.45% per annum from 6.70%. 'By easing borrowing costs, we are helping households and SMEs better manage their financial commitments while encouraging consumption and investment amid prevailing global uncertainties,' RHB Banking Group managing director/group chief executive officer Datuk Mohd Rashid Mohamad said in a statement. Separately, Bank Islam Malaysia Bhd will also revise its SBR, BR, and BFR by 25 basis points to 2.75%, 3.52%, and 6.47% per annum, respectively. The new rates will take effect on July 10. This adjustment follows Bank Negara's decision to reduce the OPR by 25 bps, from 3.00% to 2.75%, announced today. 'The strategic move is expected to support economic activity and offer financial relief to individuals and businesses with financing linked to the SBR, BR or BFR. Bank Islam remains committed to advancing economic growth while staying responsive to the evolving needs of our customers,' Bank Islam group CEO Datuk Mohd Muazzam Mohamed said.
The Star
02-07-2025
- Business
- The Star
RHB delivers on living wage, focuses on employee well-being and growth
KUALA LUMPUR: RHB Banking Group announced that all permanent employees in Malaysia are earning at or above the nationally recognised Living Wage benchmark of RM3,100 per month, as outlined in the Employee Provident Fund's Belanjawanku Expenditure Guide. The commitment supports the Finance Ministry's call for financial institutions and Government Linked Companies (GLCs) to lead in advancing fair compensation, aligned with the 'Raise the Floor' pillar of the Ekonomi Madani framework to improve quality of life for all Malaysians. RHB's full implementation of the Living Wage framework reflects its commitment as a responsible employer and its role in supporting Malaysia's broader efforts to improve the standard of living of the rakyat. 'At RHB, fair pay is a fundamental part of building a progressive and inclusive workplace. Our compensation practices reflect this but our duty goes further. Our Employee Value Proposition is designed to support our employees holistically, ensuring their physical, emotional and financial well-being, in a meaningful and practical way. 'This commitment is reflected in our employee engagement score which stands at 87%, a strong indicator of the trust and connection our people have with the organisation,' said RHB Banking Group managing director and chief executive officer Datuk Mohd Rashid Mohamad. In addition to the living wage commitment, mental health and wellness remain core areas of focus in RHB. The Group provides access to free confidential professional counselling and emotional support services through its Employee Assistance Programme, available to all employees Group wide. These are complemented by regular mental health webinars and awareness initiatives that help employees manage stress, strengthen emotional intelligence and maintain work-life balance. In 2024, RHB introduced a digital health platform offering personalised coaching, wellness tracking and lifestyle incentives, further strengthening its holistic approach to employee wellbeing. Employees also benefit from targeted financial support, including festive advance programmes, preferential rate staff loans and a dedicated Staff Welfare Fund for emergencies or personal hardship. Comprehensive medical coverage, robust insurance protection and flexible leave policies further contribute to a work environment that supports both individual and family well-being. 'We recognise the complex pressures in today's world, emotionally, financially and professionally. Our responsibility is to support them in all dimensions, not just through compensation, but through care, flexibility and long term opportunities to grow,' Mohd Rashid explained. RHB continues to invest in structured career development to future proof its workforce. In 2024 alone, the Group delivered over 390,000 hours of learning, averaging 29 hours per employee, with more than 13,000 employees participating in programmes covering digital transformation, sustainability, leadership and core technical skills. These efforts align with national priorities to create high quality jobs and strengthen social mobility. 'Our people are our greatest asset. When they thrive, our customers, communities and the nation thrive with them,' he added. RHB will continue to refine its people strategies to ensure long-term impact, for employees and the communities it serves, contributing to Malaysia's aspirations for sustainable and inclusive economic growth.
The Star
28-05-2025
- Business
- The Star
RHB sustains growth
PETALING JAYA: RHB Bank Bhd (RHB) is keeping a cautious stance amid evolving macroeconomic conditions, shaped by interest rate movements and global trade dynamics, although it expects the recent reduction in the statutory reserve requirement by Bank Negara to provide funding flexibility in the quarters ahead. In addition, the lender is projecting for the banking sector to maintain its strong capital and liquidity positions. RHB's group managing director and group chief executive Datuk Mohd Rashid Mohamad said the bank's new three-year strategic roadmap, named PROGRESS27, has set a clear course for the lender toward becoming the best in service, enhancing profitability and reinforcing its purpose-driven commitment. 'With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders,' added Mohd Rashid. Releasing its results for the first quarter ended March 31 (1Q25) yesterday, RHB saw net profit inch up by 2.7% year-on-year (y-o-y) to RM750mil, despite a marginal dip in revenue to RM4.39bil. The 1Q25 performance translates to an earnings per share of 17.2 sen. The group attributed the growth in net profit primarily to higher net funding income and improved credit cost management, which was offset by lower non-fund based income, higher tax expense, higher operating expenses and higher share of loss in associates. At the same time, it reported that total income stood at RM2bil, a marginal dip of 1.9% y-o-y mainly from contraction in non-fund based income due to lower net gain on foreign exchange (forex) and derivatives, as well as net trading and investment income. RHB said it has maintained operational stability, supported by prudent cost management, continued strength in capital and liquidity positions, reflected by the containment of cost growth at 1.2%, while cost-to-income ratio stood at 47.4% from 45.9% a year ago, reflecting the marginal contraction in income. Commenting on the results, Mohd Rashid remarked that the sustaining of the bank's earnings growth momentum in 1Q25 was underpinned by solid fundamentals and early traction from its PROGRESS27 strategy. 'Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. 'At the same time, our continued focus on asset quality has led to a reduction in credit cost. We remained disciplined in execution, strengthening our core capabilities, driving operational excellence, and unlocking new growth opportunities.' Net fund based income increased by 7.3% to RM1.49bil y-o-y on the back of gross loans and financing growth of 6.3%, while non-fund based income declined by 20.2% to RM561mil from a year ago, driven by lower net trading and investment income, lower net gain on forex and derivatives as well as lower income from its insurance business, partly offset by higher fee income. Net allowance for credit losses was lower at RM105.8mil, primarily due to lower credit losses on loans and financing. Meanwhile, total assets of the group increased by 0.7% from December 2024 to RM352.5bil as at March 31, 2025, with net assets per share at RM7.39, and shareholders' equity at RM32.2bil. Concurrently, the group's gross loans and financing grew by 6.3% y-o-y to RM239.2bil, mainly supported by growth in mortgage, corporate, commercial and automotive finance. RHB's gross impaired loans (GIL) increased marginally to RM3.6bil, with a GIL ratio of 1.50%, from 1.47%, or RM3.5bil in December 2024. The group reported a domestic GIL ratio of 1.22%, which is lower than the banking industry's GIL ratio of 1.42%. Loan loss coverage ratio for the group, including regulatory reserves, improved to 115.7%, while it stands at 76.9% if regulatory reserves are excluded. Customer deposits increased by 2.3% to RM248.5bil, primarily due to growth in money market time deposits by 31.3%, offset by a decrease in current accounts and saving accounts (Casa) by 1.1% and fixed deposits by 0.9%. Casa composition stood at 28.0% as at March 31, 2025, and liquidity coverage ratio remained sound at 134.6%. Compared to the previous quarter ended December 2024, RHB saw net profit decrease by 10.1% from RM834.5mil, which it attributed mainly to lower non-fund based income and higher allowances for credit losses. These were partly offset by lower operating expenses, higher net funding income, lower impairment on other non-financial assets and lower share of loss in associates during 1Q25. RHB did not declare any dividends for the quarter.
The Sun
28-05-2025
- Business
- The Sun
RHB posts RM750m first-quarter net profit
KUALA LUMPUR: RHB Bank Bhd registered a net profit of RM750 million in the first quarter of its financial year ending Dec 31, 2025 (Q1'25), an increase of 2.7% from the previous corresponding period. This was primarily attributed to higher net fund-based income and improved credit cost management, reflecting the group's disciplined risk management and strong base. Total income stood at RM2 billion, a marginal dip of 1.9% Y-o-Y mainly from contraction in non-fund based income due to lower net gain on forex and derivatives, and net trading and investment income. The group maintained operational stability, supported by prudent cost management, continued strength in capital and liquidity positions. Cost growth was contained at 1.2% whilst CIR stood at 47.4% from 45.9% a year ago, reflecting the marginal contraction in income. RHB Banking Group managing director/group CEO Datuk Mohd Rashid Mohamad remarked, 'We sustained our earnings growth momentum in the first quarter, underpinned by solid fundamentals and early traction from our PROGRESS27 strategy. Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. At the same time, our continued focus on asset quality has led to a reduction in credit cost. We remained disciplined in execution, strengthening our core capabilities, driving operational excellence, and unlocking new growth opportunities.' The group's total assets rose to RM353 billion, supported by healthy balance sheet growth and prudent capital management. At group level, the shareholders' equity stood at RM32 billion, with the Common Equity Tier-1 (CET-1) ratio of 16% and Total Capital Ratio (TCR) at 18.5%, reinforcing a strong capital position to support future growth ambitions, as well as to cushion macroeconomic uncertainties. Whereas the bank's CET-1 and TCR stood at 14.7% and 17.4%, respectively. Loan loss coverage ratio including regulatory reserves, improved to 115.7%, reflecting sound provisioning practices. Domestic loan growth of 4.7% (annualised) outpaced the industry's 4.3%, while the group's GIL ratio remained well-contained at 1.5%, and the domestic GIL ratio was below the industry average, demonstrating sound credit quality. The group remains cautious amid shifting rates and global trade uncertainty. The recent reduction in Statutory Reserve Requirement by Bank Negara Malaysia is expected to provide funding flexibility in the quarters ahead. 'Our new 3-year strategic roadmap, PROGRESS27, sets a clear course towards becoming the best in service, enhancing profitability, and reinforcing our purpose-driven commitment. With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders,' said Mohd Rashid.
New Straits Times
28-05-2025
- Business
- New Straits Times
RHB Bank's 1Q profit rises to RM750.03mil
KUALA LUMPUR: RHB Bank Bhd posted a higher net profit of RM750.03 million for the first quarter ended March 31, 2025 (1Q 2025) compared with RM730.17 million in the same period last year. The year-on-year (y-o-y) improvement was mainly due to higher net funding income and lower allowances for credit losses, offset by lower non-fund-based income, higher tax expense, higher operating expenses and higher share of loss in associates. Revenue, however, slid to RM4.39 billion from RM4.40 billion in 1Q 2024. In a filing with Bursa Malaysia today, RHB Bank said net fund-based income increased by 7.3 per cent to RM1.48 billion y-o-y on the back of gross loans and financing growth of 6.3 per cent. It added that the group's gross loans and financing grew by 6.3 per cent y-o-y to RM239.2 billion, mainly supported by growth in mortgage, corporate, commercial and auto finance. RHB Banking Group's group managing director and group chief executive officer, Datuk Mohd Rashid Mohamad, said the company sustained its earnings growth momentum in the first quarter, underpinned by solid fundamentals and early traction from the group's three-year PROGRESS27 strategic roadmap. "Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. "At the same time, our continued focus on asset quality has led to a reduction in credit cost. We remained disciplined in execution, strengthening our core capabilities, driving operational excellence, and unlocking new growth opportunities," he said. On outlook, the group maintained a cautious stance amidst evolving macroeconomic conditions shaped by interest rate movements and global trade dynamics. "The recent reduction in the statutory reserve requirement by Bank Negara Malaysia is expected to provide funding flexibility in the quarters ahead. "With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders," he added.
