RHB Targets 5–6 Pct Loan Growth In 2026, Led By SME, Commercial, Retail Banking Segments

KUALA LUMPUR, Feb 27 (Bernama) -- RHB Bank Bhd is targeting loan growth of between five and six per cent in 2026, driven mainly by high-yielding segments such as small and medium enterprises (SMEs), commercial and retail banking, amid expectations of supportive economic activity.

Group managing director and chief executive officer Datuk Mohd Rashid Mohamad said the growth would be anchored by SME and commercial financing alongside continued momentum in retail banking.

“The focus is still on the high-yield segment, especially the small and medium enterprise (SME) and commercial segments. Retail remains our main driver as well. But of course, we are not shying away from the corporate business as well,” he told reporters at a media briefing of RHB Bank’s financial results for the 2025 financial year (FY2025) ended Dec 31, 2025, here today.

Mohd Rashid said the group expects net interest margin (NIM) to improve in 2026, supported by stronger current account savings account (CASA) momentum, which has exceeded 30 per cent following initiatives under its Progress27 programme.

He said that initiatives such as the expansion of multi-currency accounts and the MySiswa programme across public, private and government-linked universities would continue to support low-cost deposit growth and optimise the funding mix.

Beyond interest income, he said RHB also anticipates a stronger non-interest income contribution, underpinned by wealth management expansion, improved transaction banking services and payments innovation aimed at enhancing customer engagement and fee-based earnings.

Regarding digital banking developments, Mohd Rashid said that Boost Bank, in which RHB holds a 40 per cent stake, is showing improving performance.

“The performance and trajectory of Boost Bank are very promising… we see losses that we incurred over the last couple of quarters have also come down, especially with the launch of lending products that support profitability.

“We only see Boost Bank as complementary to the bank. Certain segments of the market are unbanked by RHB, and these will be the focus of the Boost Bank businesses,” he added.

Meanwhile, on the strengthening ringgit, Mohd Rashid said it could support the banking sector by lowering imported inflation and improving the customer repayment capacity.

A stronger ringgit is both positive and an offset to the banking sector. On the positive side, it reduces imported inflation and supports customers by allowing them to pay less for imported goods, which could ultimately improve asset quality by strengthening repayment capacity.

“We are well-positioned with a strong capital and equity base and conduct regular stress testing, and a stronger ringgit will have minimal impact on our business,” he said.

Separately, Mohd Rashid said RHB is confident of achieving its RM90 billion sustainable finance target under the Progress27 corporate strategy, potentially ahead of 2027, driven by customer engagement initiatives, transition finance solutions and group-wide sustainability performance metrics.

“We have a target for 2027, and we are very confident that we will achieve it. In fact, I can share with you that we potentially will hit the RM90 billion (sustainable finance target) even earlier than 2027,” he said after highlighting that the bank had already achieved about RM60 billion under the programme in FY2025.

On cost optimisation, he said that RHB Bank will continue its programme targeting cumulative savings of up to RM800 million by 2027, following RM158 million achieved in the first year, as part of efforts to enhance operational efficiency while supporting growth initiatives.

In a filing with Bursa Malaysia today, RHB Bank disclosed that its net profit rose 7.8 per cent to RM3.36 billion for FY2025, up from RM3.12 billion a year earlier.

The bank said the resilient performance was underpinned by higher total income, disciplined cost management, and improved credit quality, reflecting the group’s solid fundamentals and prudent execution across its core businesses.

Its revenue was marginally higher at RM17.92 billion in FY2025 from RM17.91 billion previously.

RHB also declared a second interim dividend of 35 sen per share, bringing the total FY2025 dividend to 50 sen per share, translating to a dividend payout ratio of 65 per cent, with a 6.5 per cent dividend yield.

For the fourth quarter (4Q) of FY2025, RHB Bank’s net profit improved to RM905.71 million from RM834.54 million, while revenue was marginally lower at RM4.50 billion from RM4.58 billion achieved in the previous corresponding quarter.

-- BERNAMA