KUALA LUMPUR (May 29): RHB Bank Bhd (KL:RHBBANK) posted a 14% increase in first-quarter net profit to RM856.8 million driven by higher income and lower loan-loss provisions, despite higher operating costs, taxes, and losses from associates.
Net fund-based income rose 4.6% year-on-year to RM1.56 billion, supported by 6.2% growth in loans and financing as well as lower funding costs, a bourse filing showed.
Non-fund based income increased 14.1% to RM640.1 million due to higher fee income and stronger trading and investment income, although this was partly offset by weaker foreign exchange, derivatives, and insurance income.
No dividend was declared for the quarter.
Operating expenses increased 4.6% to RM1 billion. However, the cost-to-income ratio improved to 46.2% from 47.4% a year earlier.
Meanwhile, net credit loss allowances fell 14.6% to RM90.3 million due to lower loan losses and higher writebacks from financial investments.
As of March 31, 2026, total assets rose 2% from December 2025 to RM365.4 billion.
Gross loans and financing grew 6.2% year-on-year to RM254 billion, mainly driven by mortgages, Singapore operations, corporate, commercial, and auto financing.
Customer deposits increased 4% to RM258.5 billion, supported by a 9.5% rise in current and savings accounts (CASA) and a 3.1% increase in fixed deposits, partially offset by a 1.6% decline in money market time deposits.
“The operating environment continues 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,” group managing director and chief executive officer Datuk Mohd Rashid Mohamad said in a separate statement.
RHB said it will remain focused on growth and prudent risk management amid intensifying challenges in the second quarter, driven by the West Asian oil crisis, which could heighten energy price volatility and weigh on market sentiment.
RHB shares were unchanged at Friday's noon break at RM8.20, valuing the banking group at RM35.8 billion.