RHB Bank Berhad (RHB or the Group) registered a net profit of RM1.6 billion in the first half of its financial year ending 31 December 2025 (1H FY2025), a 7.0% Y-o-Y increase, primarily driven by higher net fund-based income, disciplined credit cost management and improved credit quality, reflecting the Group’s strong fundamentals and prudent risk discipline.
Total income expanded marginally at RM4.2 billion, mainly from higher net fund-based income but partially offset with contraction in non-fund based income. The Group maintained operational stability, supported by prudent cost management, continued strength in capital and liquidity positions. Cost growth was contained at 2.1% with CIR at 47.3%.
Dato’ Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer of RHB Banking Group said, “The first half of 2025 was marked by global uncertainties and industry headwinds. Despite this, RHB remained resilient in delivering performance with sustained growth, lower ECL, and disciplined cost management. Our domestic loan growth tracked well with the industry, supported by sound asset quality. These results underscore our strength and position us well to capture new growth avenues in the months ahead.”
“We remain focused on sharpening the execution of PROGRESS27, our three-year strategic roadmap. The recently concluded strategic bancassurance and bancatakaful partnerships reinforce our commitment to staying relevant to customers, diversifying income streams, and driving sustainable long-term growth. This is aligned to our strategic priorities, enabling us to deliver broader value for stakeholders, strengthen our non-interest income base, and unlock greater opportunities ahead,” added Dato’ Mohd Rashid.
Strong Capital and Liquidity Position
The Group’s total assets rose to RM354 billion, supported by healthy balance sheet growth and prudent capital management. Group shareholders’ equity stood at RM33 billion, with the Common Equity Tier-1 (CET-1) ratio of 15.9% and Total Capital Ratio (TCR) at 18.3%, reinforcing a strong capital position to support future growth ambitions while providing ample buffers against macroeconomic uncertainties. Whereas the Bank’s CET-1 and TCR stood at 14.6% and 17.4%, respectively. Loan loss coverage ratio including regulatory reserves, improved to 116.5%, reflecting sound provisioning practices.
Domestic loan growth of 4.2% (annualised) tracking well against the industry’s 4.3%, while the Group’s GIL ratio contained at 1.51%, and the domestic GIL ratio was below the industry average, demonstrating sound credit quality.
The Group has delivered RM48 billion in sustainable financial services, achieving more than half of its RM90 billion target for 2027. This underscores its commitment to sustainable financing and supporting the nation’s low-carbon transition agenda. Most recently, the Group partnered with Malaysia Rail Link Sdn Bhd (MRL) to activate the RHB-MRL 360⁰ ESG Finance Ecosystem, a first-of-its-kind sustainable financial value chain transition roadmap. Through this partnership, MRL has placed funds in RHB ESG Deposits to finance green and social projects, embedding sustainability into the core of banking while reinforcing the role of financial flows in driving climate resilience and inclusive economic growth.
Outlook: Building on Momentum
Looking ahead, Malaysia’s economy is projected to remain resilient, with strong domestic demand, growth in tourism activity, job creation, and sustained investment activity from both private and public sectors. The Government’s Ekonomi MADANI framework is key to guiding sustainable and inclusive growth, emphasising high value activities, fiscal consolidation, and social equity. Initiatives such as the Energy Transition Roadmap and the New Industrial Master Plan 2030, alongside the steady rollout of structural reforms, are expected to further stimulate investment and economic growth. In this environment, the operating landscape remains conducive for the Group to pursue its growth ambitions under PROGRESS27.
