KUALA LUMPUR (Feb 27): RHB Bank Bhd (KL:RHBBANK) said on Friday its net profit rose 8.5% in the final quarter of 2025 from a year earlier, driven by a surge in non-interest income and sharply lower provisions.
Net profit for the three months ended Dec 31, 2025 (4QFY2025) was RM905.71 million, the country’s fourth-largest bank by assets said in an exchange filing. A dividend of 35 sen per share was also declared with the entitlement and payment dates to be determined later.
“Heading into 2026, our priority will be on quality growth while accelerating innovation that further improves security, convenience and the way we serve our customers,” group chief executive officer Datuk Mohd Rashid Mohamad said in a statement.
RHB Bank is committing to PROGRESS27, a three-year plan that includes targets for a return on equity of 12% while keeping the cost-to-income ratio under 44.8% by 2027.
To achieve the goal, the company plans to promote growth of domestic deposits and loans, control costs and focus on retail wealth management as well as other operational measures.
“As we carry PROGRESS27 into its second year, we remain focused on execution discipline while positioning the group to capture emerging growth opportunities across our operating footprint,” Mohd Rashid added.
For the full FY2025, net profit totalled RM3.36 billion, an increase of 7.8% from a year earlier, thanks partly to reduction in provisions for bad debts and other losses.
Net interest income grew 3.9% to RM6.0 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.
The net interest margin, which compares interests charged on loans and returns paid on deposits, stood at 1.88% with liability management initiatives.
In terms of asset quality, gross impaired loans — the proportion of bad debts as a percentage of total loans — improved by six basis points to 1.41% at the end of 2025.
The bank’s common equity Tier 1 capital ratio, a measure of a bank’s capital strength based on the highest quality of regulatory capital, improved to 15.2% post-dividend — a level considered high by analysts. Dividends declared totalled 50 sen per share for 2025, up from 43 sen for 2024.