KUALA LUMPUR (Aug 28): RHB Bank Bhd (KL:RHBBANK) eked out growth in the second quarter as higher net interest income and lower provisions offset a decline in non-interest income.
Net profit for the three months ended June 30, 2026 (2QFY2026) was RM807.15 million compared to RM803.50 million in the same quarter in 2025, according to an exchange filing. Year-on-year, net fund-based income was up 6% to RM1.58 billion while non-fund based income declined 13% to RM580 million.
Allowance for credit losses on financial assets, meanwhile, declined by more than 10%. Last year’s results at the fourth-largest Malaysian bank by assets were also inflated by net foreign exchange gain totalling RM427 million.
“We are encouraged by the progress we have made so far,” group chief executive officer Datuk Mohd Rashid Mohamad said in a statement. However, the operating environment remains subject to external risks, including trade policies, geopolitical developments and market volatility, he flagged.
An interim dividend of 15 sen per share was declared with the payment date to be determined later.
For the first six months, RHB Bank’s net profit totalled RM1.66 billion, a 7% rise from the same period last year. Year-on-year, net interest income grew 5.3% to RM3.1 billion, supported by loans growth and lower funding cost.
The bank's net interest margin, a gauge of profitability from loans after accounting for interest paid to depositors, narrowed by two basis points to 1.86%. Gross loans expanded 7% year-on-year in the first half.
Non-interest income held steady at RM1.2 billion as higher fee income compensated the lower treasury income.
In terms of asset quality, the gross impaired loan ratio edged down four basis points to 1.47%. Loan loss coverage, including regulatory reserves, stood at 115.4%.
RHB Bank’s common equity tier-one capital ratio, a measure of a bank’s capital strength based on its highest-quality regulatory capital, stood at 14.8% post-dividend — a level considered high by analysts.
Shares of RHB Bank paused for Friday's midday break up one sen or 0.1% at RM8.61, valuing the bank at nearly RM38 billion.