Company Coverage
RHB Bank (RHBBANK MK): 1H26: Resilient 1H26, Better 2H26 Ahead
HOLD (Downgraded)
Current price:
Target price:
Upside:
RM8.68
RM9.10
+4.8%
Analyst
Analyst
Highlights
- 1H26 earnings came in within expectations, supported by higher NII, positive JAWS and lower credit costs.
- 2Q26 earnings fell qoq on weaker NOII and NIM compression, partly cushioned by higher NII and lower NCC.
- Downgrade to HOLD with an unchanged RM9.10 target price (1.11x 2027F P/B, 10.3% ROE). Risk-reward is now more balanced following the strong ytd performance.
Analysis
In line. RHB Bank (RHB) posted 2Q26 net profit of RM807m (+0.5% yoy, -5.8% qoq), lifting 1H26 earnings to RM1,664.0m (+7.1% yoy). Results are in line, at 47%/48% of our/consensus full- year estimates respectively. 1H26 earnings grew 7.1% yoy, supported by higher NII (+5.3%), lower credit allowances and positive operating JAWS. Net credit cost improved to 13bps, while flat NOII reflected a weaker treasury income that was offset by stronger wealth fees.
Highlights
- 1H26 earnings came in within expectations, supported by higher NII, positive JAWS and lower credit costs.
- 2Q26 earnings fell qoq on weaker NOII and NIM compression, partly cushioned by higher NII and lower NCC.
- Downgrade to HOLD with an unchanged RM9.10 target price (1.11x 2027F P/B, 10.3% ROE). Risk-reward is now more balanced following the strong ytd performance.
Analysis
In line. RHB Bank (RHB) posted 2Q26 net profit of RM807m (+0.5% yoy, -5.8% qoq), lifting 1H26 earnings to RM1,664.0m (+7.1% yoy). Results are in line, at 47%/48% of our/consensus full- year estimates respectively. 1H26 earnings grew 7.1% yoy, supported by higher NII (+5.3%), lower credit allowances and positive operating JAWS. Net credit cost improved to 13bps, while flat NOII reflected a weaker treasury income that was offset by stronger wealth fees.
HOLD (Downgraded)
Current price:
Target price:
Upside:
RM8.68
RM9.10
+4.8%
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
