RHB Bank Berhad posted a net profit of RM750 million for the first quarter ended 31 March 2025 reflecting a 2.7% increase compared to RM730 million recorded during the same period last year.
This growth was primarily attributed to higher income from lending activities and improved management of credit risk, which helped reduce expected credit losses.
The Group’s total income for the quarter stood at RM2.05 billion, a slight decline of 1.9% year-on-year. This dip was mainly due to lower contributions from non-fund based income, particularly in foreign exchange trading, derivatives, and investment activities, which were less favourable compared to the previous year.
Despite this, the bank maintained strong operational stability through disciplined cost control and solid asset quality.
RHB’s Group Managing Director and CEO, Dato’ Mohd Rashid Mohamad, expressed confidence in the Group’s performance.
“We sustained our earnings growth momentum in the first quarter, underpinned by solid fundamentals and early traction from our PROGRESS27 strategy.
Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. At the same time, our continued focus on asset quality has led to a reduction in credit cost,” he added.
Net fund-based income, which includes earnings from loans and financing, rose by 7.3% to RM1.5 billion, supported by a 6.3% increase in gross loans. The Group’s net interest margin (NIM) also improved slightly to 1.84% compared to 1.83% a year earlier, with the effective NIM reaching 1.91% due to proactive management of funding costs.
As of 31 March 2025, RHB’s total assets increased to RM352.5 billion, while shareholders’ equity stood at RM32.2 billion.
The Group’s capital strength remained robust, with a Common Equity Tier-1 (CET-1) ratio of 16.0% and Total Capital Ratio (TCR) of 18.5%, well above regulatory minimums. These strong capital levels provide a solid buffer against future uncertainties and support the Group’s long-term growth plans.
Loan growth was healthy, with gross loans increasing to RM239.2 billion. On an annualised basis, domestic loan growth stood at 4.7%, outperforming the industry average of 4.3%.
The Group’s gross impaired loans (GIL) ratio remained low at 1.50%, while the domestic GIL ratio was even lower at 1.22%, compared to the industry’s 1.42%. This indicates a strong quality of the loan portfolio.
Segment-wise, the Group Community Banking division recorded a 14.7% increase in pre-tax profit to RM425.7 million, led by strong growth in mortgages, auto financing, and loans to small and medium enterprises (SMEs).
The Group Wholesale Banking segment contributed RM548.2 million in pre-tax profit, while the Group International Business reported a strong turnaround with pre-tax profit of RM87.3 million, due to lower credit losses.
The Group’s Islamic banking segment also saw steady growth, with pre-tax profit of RM242.5 million and total Islamic financing growing 8.7% on an annualised basis.
Looking ahead, RHB remains cautiously optimistic amid global economic uncertainties, interest rate movements, and evolving trade conditions. The recent cut in the Statutory Reserve Requirement (SRR) by Bank Negara Malaysia is expected to offer greater funding flexibility in the coming quarters.
The Group will continue to focus on its PROGRESS27 strategic roadmap, which outlines key priorities such as enhancing customer experience, driving profitability, and advancing sustainability initiatives.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
