KUALA LUMPUR: RHB Bank Berhad (“RHB” or “the Group”) posted a net profit of RM750 million for the first quarter ended 31 March 2025 (Q1 FY2025), marking a 2.7% year-on-year (Y-o-Y) increase from RM730.2 million. The performance was driven by higher net fund-based income and improved credit cost management, reflecting RHB’s disciplined risk approach and operational resilience.
Total income stood at RM2 billion, reflecting a marginal 1.9% Y-o-Y decline, mainly due to softer non-fund based income from lower gains in forex, derivatives, trading and investment activities. Net fund-based income, however, rose 7.3% Y-o-Y to RM1.5 billion, supported by a 6.3% increase in gross loans and stable net interest margins (NIM). The Group reported an effective NIM of 1.91% for the quarter, compared to 1.83% a year earlier.
Operating expenses grew modestly by 1.2% Y-o-Y to RM970.7 million, while the cost-to-income ratio (CIR) rose slightly to 47.4% from 45.9% in the prior year due to lower income. Expected Credit Losses (ECL) declined sharply by 50.8% to RM105.8 million, attributed to the absence of one-off ECL from international operations.
“We sustained our earnings growth momentum in the first quarter, underpinned by solid fundamentals and early traction from our PROGRESS27 strategy,” said Dato’ Mohd Rashid Mohamad, Group Managing Director and CEO of RHB Banking Group. “Our cost optimisation efforts are delivering results, while we remain focused on asset quality and disciplined execution.”
Robust Capital, Steady Loan Growth
As of 31 March 2025, RHB’s total assets expanded to RM353 billion. Shareholders’ equity stood at RM32 billion, with a Common Equity Tier-1 (CET-1) ratio of 16.0% and Total Capital Ratio (TCR) of 18.5% at Group level. The Bank’s standalone CET-1 and TCR were 14.7% and 17.4%, respectively.
Gross loans rose 2.4% on an annualised basis to RM239 billion, led by solid performances in Group Community Banking (+5.5%) and Commercial segments (+16.9%). Domestic loans grew 4.7% annually, outpacing the industry average of 4.3%. The Group’s gross impaired loans (GIL) ratio was stable at 1.50%, while domestic GIL remained below industry levels at 1.22%.
Customer deposits totalled RM249 billion, with the CASA (current account savings account) ratio improving to 28.0% from 27.6% in FY2024. Liquidity Coverage Ratio (LCR) was healthy at 134.6%. Loan loss coverage including regulatory reserves strengthened to 115.7%.
Segment Performance Overview
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Group Community Banking recorded a pre-tax profit of RM425.7 million (+14.7% Y-o-Y), supported by growth in mortgages (+7.3%), auto finance (+9.0%), and SME loans (+5.5%). Gross loans stood at RM152 billion, while deposits reached RM125 billion.
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Group Wholesale Banking posted RM548.2 million in pre-tax profit. Commercial segment loans rose 16.9% to RM54 billion, with deposits of RM86 billion.
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Group International Business saw pre-tax profit surge to RM87.3 million due to lower ECL. Deposits grew 4.6% annually to RM37 billion, with CASA rising 22.2%.
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Group Shariah Business reported RM242.5 million in pre-tax profit, with Islamic financing at RM93 billion (+8.7% annualised). Islamic loans made up 45.1% of total domestic financing, up from 44.6% in December 2024.
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Group Insurance contributed RM17.7 million in pre-tax profit for the quarter.
Strategic Outlook
RHB maintains a cautious outlook amid global macroeconomic uncertainties, interest rate movements, and trade tensions. The recent reduction in the Statutory Reserve Requirement (SRR) by Bank Negara Malaysia is expected to support funding flexibility in the coming quarters.
“Our new three-year strategic roadmap, PROGRESS27, charts a clear path to strengthening service excellence, profitability and purpose-driven growth,” added Dato’ Rashid. “With targeted execution across customer journeys and sustainability efforts, we are well-positioned to unlock both near-term and long-term value for stakeholders.”
