Latest news with #RHBBankBhd
The Star
09-07-2025
- Business
- The Star
Trade spillover expected to impact RHB's lending
Kenanga Research said that slight top-ups on provisions may be expected from further developments surrounding trade policies. PETALING JAYA: Spillover effects from trade tariffs may weigh on RHB Bank Bhd's corporate lending activities, cautions Kenanga Research. This is despite the fact that RHB, which is 39.2%-owned by the Employees Provident Fund, has a minimal direct and indirect exposure to trade loans at below 2%. Kenanga Research said that slight top-ups on provisions may be expected from further developments surrounding trade policies. Nevertheless, RHB's loan loss coverage ratio of over 115% looks 'sufficient' to weather through near-term uncertainties. The group's mortgage segment (38% of the total loans) remains resilient and research house is anticipating continued growth on the back of stronger property sales in both primary and secondary markets. 'The group is also positioning to leverage the overall property development value chain, being present in both land and project financing,' it pointed out. It is noteworthy that RHB had revised its loan growth target for the financial year of 2025 (FY25) from 6% to 7% to 5% to 6%, citing weaker economic forecasts amid ongoing global trade uncertainties. 'Though the group took a more conservative view on the operating landscape in the recent results reporting, some relief could be found in encouraging loans growth in certain pockets with net interest margin (NIM) pressures looking to alleviate.' In the first quarter of FY25 (1Q25), RHB's NIM of 1.84% fell slightly behind its 1.86% to 1.90% target, no thanks to the decline in Singapore Overnight Rate Average (Sora) rates affecting its loan yields there (predominantly made up of variable rate loans). Sora is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank Singapore dollar cash market in Singapore between 8am and 6.15pm. Kenanga Research noted that RHB expects NIMs to close well above 1.8% in the first half of FY25 as its fixed deposits in Singapore mature, allowing for repricing at lower rates and support margin recovery. Domestically, the group believes it may continue to be selective with its deposit acquisition strategies, thanks to the release of the statutory reserve requirement, which could improve their NIMs by one basis point. Kenanga Research has maintained its 'outperform' call on RHB and a target price of RM7.80 per share.
New Straits Times
03-07-2025
- Business
- New Straits Times
Foreign shareholding in Malaysian equities plunges to 15-year low
KUALA LUMPUR: Foreign shareholding in Malaysian equities fell to its lowest level since 2010, declining to 19 per cent in June, according to data compiled by CIMB Securities. The drop followed a net sell-off of RM1.3 billion by foreign investors during the month, reversing their net buying position in May. This brought cumulative net foreign outflows for the first half of 2025 to RM12.1 billion. Since 2010, total net foreign outflows from Malaysian equities have reached RM50.6 billion. CIMB Securities attributed the decline in foreign shareholding to the weaker performance of stocks with higher foreign ownership, compounded by sustained net foreign selling. The top three stocks that saw significant foreign selling in June were Public Bank Bhd, RHB Bank Bhd and KPJ Healthcare Bhd. Sector-wise, foreign investors concentrated their selling in the financial services and healthcare sectors. Despite accounting for 44 per cent of total trade value in June, which was the highest among all investor groups, CIMB Securities noted that foreign investor sentiment remains fragile. The average share of trading value for foreign investors rose to 42 per cent in the first half of 2025, surpassing the 2024 average of 36 per cent.
The Star
30-06-2025
- Business
- The Star
RHB issues RM900mil sukuk, RM500mil Tier-2 notes
KUALA LUMPUR: RHB Bank Bhd has completed its fifth Senior Sukuk Murabahah issuance of RM900 million in nominal value under the Sukuk Murabahah Programme and first T2 Notes issuance of RM500 million in nominal value under the Note Programme. In a filing with Bursa Malaysia today, the bank stated that the Senior Sukuk Murabahah is based on the Shariah Principle of Murabahah (via Tawarruq arrangement) and rated AA1/Stable by RAM Rating Services Bhd (RAM Ratings). The Senior Sukuk Murabahah is issued for a tenure of seven years with a fixed profit rate of 3.81 per cent per annum, payable semi-annually in arrears. "Proceeds raised from the Senior Sukuk Murabahah will be utilised for the working capital of its subsidiary company in Islamic business activities,' it said. The T2 Notes, rated AA2/Stable by RAM Ratings, were issued for a tenure of 12 non-callable seven (12NC7) years with a fixed coupon rate of 3.93 per cent per annum, payable semi-annually in arrears. "The T2 Notes will have an optional redemption call option on the seventh anniversary of the issue date (with the first optional redemption date on June 30, 2032) and on any coupon payment date thereafter. RHB Bank said proceeds raised from the T2 Notes will be utilised to finance the working capital of RHB Bank and its subsidiaries, general banking purposes and/or refinancing the outstanding borrowings or capital instruments of RHB Bank and its subsidiaries. The RM500 million T2 Notes will qualify as Tier 2 capital of RHB Bank in accordance with Bank Negara Malaysia's Policy Document on Capital Adequacy Framework (Capital Components) issued on June 14, 2024, it added. - Bernama
New Straits Times
30-06-2025
- Business
- New Straits Times
RHB issues RM900mil sukuk, RM500mil Tier-2 notes
KUALA LUMPUR: RHB Bank Bhd has completed its fifth Senior Sukuk Murabahah issuance of RM900 million in nominal value under the Sukuk Murabahah Programme and first T2 Notes issuance of RM500 million in nominal value under the Note Programme. In a filing with Bursa Malaysia today, the bank stated that the Senior Sukuk Murabahah is based on the Shariah Principle of Murabahah (via Tawarruq arrangement) and rated AA1/Stable by RAM Rating Services Bhd (RAM Ratings). The Senior Sukuk Murabahah is issued for a tenure of seven years with a fixed profit rate of 3.81 per cent per annum, payable semi-annually in arrears. "Proceeds raised from the Senior Sukuk Murabahah will be utilised for the working capital of its subsidiary company in Islamic business activities," it said. The T2 Notes, rated AA2/Stable by RAM Ratings, were issued for a tenure of 12 non-callable seven (12NC7) years with a fixed coupon rate of 3.93 per cent per annum, payable semi-annually in arrears. "The T2 Notes will have an optional redemption call option on the seventh anniversary of the issue date (with the first optional redemption date on June 30, 2032) and on any coupon payment date thereafter. RHB Bank said proceeds raised from the T2 Notes will be utilised to finance the working capital of RHB Bank and its subsidiaries, general banking purposes and/or refinancing the outstanding borrowings or capital instruments of RHB Bank and its subsidiaries. The RM500 million T2 Notes will qualify as Tier 2 capital of RHB Bank in accordance with Bank Negara Malaysia's Policy Document on Capital Adequacy Framework (Capital Components) issued on June 14, 2024, it added.
The Star
29-05-2025
- Business
- The Star
Analysts offer mixed outlook on RHB
PETALING JAYA: RHB Bank Bhd's prospects for the rest of the financial year appear balanced between resilience and caution, as analysts weigh solid fundamentals against macroeconomic uncertainties following the group's first-quarter results. Despite a 2.7% year-on-year rise in net profit to RM750.03mil for the three months ended March 31, 2025 (1Q25), brokerages are mixed in their outlook, citing slower gross domestic product (GDP) growth projections, credit cost risks and muted non-interest income (NOII) as key variables. Hong Leong Investment Bank (HLIB) Research noted that RHB has revised its loan growth guidance to 5%-6% from 6%-7%), in response to revised GDP growth expectations now 4.5% against 5%. Nevertheless, net interest margin (NIM) guidance remains intact, expected to be flat to +4 basis points (bps), excluding any overnight policy rate (OPR) cut, underpinned by concrete efforts to ease funding cost pressures through portfolio rebalancing, Singapore deposit rate repricing and leveraging statutory reserve ratio (SRR) liquidity, it said. HLIB maintained a 'buy' rating with an unchanged target price of RM7.70, calling the stock attractive at 0.88 times price-to-book (P/B) due to a dividend yield of 6.7%. TA Research was similarly upbeat, reiterating a 'buy' and raising its target price to RM7.52 from RM7.00. It highlighted that 'management remains cautiously optimistic about the outlook for 2025', with credit cost guided at 15–20bps and return on equity (ROE) forecast at 10.4%–10.8%. The bank's focus on mitigating risks through early restructuring efforts was also noted, especially for small and medium enterprises (SME) exposures, with RHB proactively engaging with potentially affected borrowers and has reinforced its early restructuring and rescheduling (R&R) initiatives. TA also underscored stable NIM expectations of 1.86% to 1.90%, aided by the recent SRR cut and an improving current-account-savings-account (CASA) ratio. However, Maybank Investment Bank (MaybankIB) Research struck a more cautious tone, revising its call to 'hold' from 'buy' and cutting its target price to RM7.10 from RM7.70. It stated that 'RHB's 1Q25 core net profit was below expectations, largely on account of lower-than-expected NOII'. Reflecting a weaker macroeconomic backdrop, MaybankIB has cut its 2025-2027 earnings for RHB by 8%-9%, largely to factor in slower economic growth, a potential rate cut and lower NOII, and added that it has raised credit costs by 20% from 3bps. CIMB Research, meanwhile, maintained a 'buy' call with an unchanged target price of RM7.50, asserting that dividend yield will likely remain close to 5.5%, even under a more stressed scenario. It believes key catalysts for RHB include 'higher-than-expected NIM, better asset quality, higher-than-expected loan growth, and sustained dividend payout'. However, it warned of downside risks from 'higher-than-expected cost of funds' and 'uptick in impaired loans'. The bank's key performance index targets for 2025 include ROE of 10.4%–10.8%, loan growth of 5%–6%, NIM of 1.86–1.90%, and a dividend payout ratio of 30%–50%. Credit cost is expected to be kept within 15–20bps, while the cost-to-income ratio is guided at 45.5–46%. For 1Q25, RHB reported revenue of RM4.39bil, marginally lower than RM4.40bil in the previous year. Net profit of RM750.03mil was up from RM730.17mil previously.
