For everyday Malaysians, the steady performance of a major bank can mean the difference between securing a home loan or watching a dream slip away. RHB Bank Bhd’s recent progress on its key targets offers a reassuring signal to customers and communities who rely on accessible credit and stable financial services. The bank’s ability to maintain strong loan growth—particularly in retail mortgages and auto financing—directly impacts families seeking to buy their first home or replace an aging vehicle.
Despite a challenging operating environment, RHB Bank Bhd is on pace to achieve the majority of its key performance indicator (KPI) targets for the financial year ending December 31, 2022 (FY22). Among the goals set by the bank were a return on equity (RoE) of 8.5%, loan growth of 4% to 5%, a gross impaired loan (GIL) ratio of 1.7% or less, a current account savings account (CASA) or low-cost deposit ratio of 30%, and a cost-to-income (CTI) ratio of 45% or less.
According to RHB Bank group managing director and CEO Mohd Rashid Mohamad, who recently informed analysts during a conference call, the bank had so far surpassed four of its five KPI targets. The CASA ratio was the only one that fell just short of the mark. For the nine months ending in September 2022, the bank’s actual performance was notably strong.
The RoE stood at 9.3%, well above the 8.5% target. Loan growth reached 7.5%, exceeding the 4% to 5% goal.
The GIL ratio was 1.57%, better than the 1.7% or less target. The CTI ratio came in at 44.8%, below the 45% ceiling. The CASA ratio was 29.9%, just shy of the 30% benchmark.
These figures show that RHB Bank is delivering solid results that underpin its ability to serve customers across Malaysia and beyond.
Analysts See Strong Prospects for Regional Growth
Financial analysts have taken note of the bank’s performance. Kenanga Research kept its “outperform” recommendation on RHB Bank, with a target price (TP) of RM7.
The research house noted that “the group looks to surpass its initial 4% to 5% loan growth objective, led by strong progress in its retail mortgage and auto financing books.” The statement added that “the group is on track to reach most of its headline targets.” Kenanga also highlighted that RHB Bank “voiced higher ambitions to expand its regional operations in Singapore and Cambodia, according to the statement,” despite starting from a considerably weaker base than Malaysia, where less than 15% of total loans are currently held.
CGS-CIMB Research gave RHB Bank an “add” rating, with a TP of RM7.62 per share remaining constant. The brokerage stated, “We predict a modest 2.4% year-over-year growth in RHB Bank’s fourth-quarter net profit, supported by ongoing expansion in net interest margin from OPR hikes.” These assessments suggest that the bank’s disciplined management is creating value for shareholders while maintaining the stability that customers depend on.
What to Watch Next
Looking ahead, investors and customers alike will be watching how RHB Bank navigates the final quarter of FY22. The bank’s ability to close the gap on its CASA ratio—currently at 29.9% versus the 30% target—will be a key indicator of its success in attracting low-cost deposits. Additionally, the planned expansion into Singapore and Cambodia, though still in early stages, could open new avenues for growth that benefit both the bank and the communities it serves. With the fourth-quarter net profit expected to see modest year-over-year growth, RHB Bank appears well-positioned to meet its goals and continue supporting the financial needs of Malaysians in the months ahead.
