RHB Bank has delivered results that outstrip the majority of its 2022 key performance indicators for the first three quarters. The bank posted a return on equity (ROE) of 9.3%, surpassing the 8.5% goal it set for the period. Loan growth also exceeded expectations, reaching 7.5% against a target range of 4%‑5%. Asset quality remained within limits, with the gross impaired loan ratio recorded at 1.57%, below the 1.7% ceiling.
Efficiency improved as the cost‑to‑income ratio came in at 44.8%, marginally better than the 45% threshold. The only metric that fell short was the current account savings account (CASA) ratio, which missed the 30% benchmark by a small margin.
This shortfall is the sole blemish on an otherwise strong scorecard. Group Managing Director and Chief Executive Officer Mohd Rashid Mohamad presented the figures during an analyst conference call, emphasizing that the bank remains on track to meet its strategic objectives. Kenanga Research maintained its “outperform” rating for RHB Bank, setting a target price of RM7.
The research house highlighted that the bank is likely to exceed its initial loan‑growth ambition, driven primarily by retail mortgage and automobile financing activities. These two loan segments have been the engine behind the robust expansion, reflecting continued consumer demand for homes and vehicles.
While domestic growth is solid, RHB Bank is also pursuing regional expansion, with plans to deepen its presence in Singapore and Cambodia. Currently, overseas loans constitute less than 15% of the bank’s total loan portfolio, indicating ample room for growth in these markets. Despite describing the operating environment as challenging, Mohd Rashid noted that the bank’s cost discipline, loan‑quality metrics, and targeted growth areas are delivering the expected outcomes.
The controlled cost‑to‑income ratio and low impaired‑loan ratio suggest effective risk management. Kenanga’s analysis reiterates that RHB Bank is on course to achieve most of its headline targets for the year.
The institution has already met four of its five stated goals and is positioned to surpass the loan‑growth target it originally set. The CASA ratio, while the only metric below target, remains a focus for the bank. A higher CASA proportion is important for securing low‑cost funding, which underpins lending margins.
Although the shortfall does not constitute a crisis, RHB Bank will need to address this area to strengthen its deposit base. In summary, RHB Bank’s nine‑month results show strong profitability, solid loan growth, sound asset quality, and disciplined cost management.
The bank’s expansion plans in Singapore and Cambodia add a forward‑looking dimension to its performance narrative. With most targets already met and the loan‑growth outlook remaining upbeat, the institution appears well positioned to continue its upward trajectory for the remainder of 2022.
