RHB Bank's Q2 profit holds steady despite revenue dip

In the second quarter of 2026, RHB Bank Bhd reported a slight increase in net profit, rising 0.4% to RM807.15 million. This growth was attributed to higher total income and reduced expected credit losses. However, the bank's revenue decreased by 3.2% to RM4.35 billion, down from RM4.5 billion in the same quarter last year, according to its filing with Bursa Malaysia. Despite the dip in revenue, RHB Bank declared an interim dividend of 15 sen per share, amounting to RM654.73 million for the quarter.

Looking at the first half of 2026, RHB Bank's net profit grew by 7% to RM1.66 billion, up from RM1.55 billion in the previous year. The increase was driven by higher total income, effective cost management, and lower expected credit losses. Yet, the bank's revenue for the six-month period saw a 2.9% decline, falling to RM8.62 billion from RM8.88 billion a year earlier.

Gross loans and financing increased by 7% year-on-year to RM258.3 billion, primarily fueled by growth in mortgage, Singapore, corporate, commercial, and auto financing. The bank reported a gross impaired loan of RM3.8 billion as of June 30, 2026, up from RM3.6 billion the previous year, with the gross impaired loan ratio improving to 1.47% from 1.51% previously.

RHB Banking Group's managing director and chief executive officer, Datuk Mohd Rashid Mohamad, highlighted that the first-half performance demonstrated disciplined execution of its PROGRESS27 strategy. This strategy was bolstered by effective cost optimization, strong asset quality, and continued innovation. Mohamad emphasized that the bank is making steady progress in transforming into a more trusted and customer-centric solutions partner, all while maintaining its commitment to delivering sustainable value to customers.

He expressed satisfaction with the progress made so far, crediting the dedication of the bank's employees and ongoing efforts to simplify, expedite, and personalize banking services for customers.