KUALA LUMPUR (Aug 6): RHB Bank Bhd’s (KL:RHBBANK) enhanced transaction banking capability could lift the group’s net interest margin (NIM) by approximately five basis points (bps) over time, which is equivalent to RM170 million in net interest income, CIMB Securities said.

The banking group’s unified online payment gateway, RHB Pay, gives it a first-mover advantage in capturing sustainable earnings growth, supported by early ecosystem lock-in and higher current account and savings account (Casa) deposits. 

This comes at a time when competition in digital payments and merchant acquiring is especially intense as domestic banks accelerate the rollout of similar integrated payment and cash management solutions.

"These transaction-linked deposits should be relatively sticky, given that they are embedded within customers’ daily business activities rather than attracted solely through higher deposit pricing. 

"The platform could also strengthen RHB’s ability to acquire higher-quality SME and mid-corporate customers with meaningful transaction volumes and more sophisticated cash management requirements," CIMB Securities said in a note on Thursday.

At its core, RHB Pay integrates multiple payment methods — such as DuitNow, FPX and e-wallets — into a single platform, allowing merchants to receive funds directly into their RHB accounts. 

This enables faster settlements, automated reconciliation, and consolidated reporting. For merchants, it also reduces implementation time, lowers operating costs, and enhances cash flow management and operational efficiency.

CIMB Securities noted that the NIM uplift by five bps translates into a 3.2%–3.6% enhancement to RHB Bank’s FY2026–FY2028 net profit and a 20–40 bps expansion in return on equity (ROE).

Beyond the immediate earning uplift, the platform is expected to provide greater visibility into customer’s transaction and cash flow data, enabling more targeted working capital financing and creating additional opportunities for fee-income and cross-selling. 

As CIMB noted, RHB’s strategy is less about generating payment gateway fees but more on capturing merchants’ transaction flows to build stable Casa balances and deeper customer relationships.

CIMB Securities maintained its “buy” call with an unchanged target price of RM9.20, while emphasising further re-rating potential as RHB strengthens its Casa franchise and delivers more capital-efficient growth. 

It also noted that RHB’s attractive dividend yields and resilient CET1 (Common Equity Tier 1) ratio offers solid downside protection.

RHB Bank’s shares settled at RM8.86, translating into a market capitalisation of RM38.67 billion.