Kuala Lumpur: RHB Bank Bhd reported an increase in net profit to RM750.03 million for the first quarter ending March 31, 2025, compared to RM730.17 million in the same period last year.
According to BERNAMA News Agency, the improvement was attributed to higher net funding income and reduced allowances for credit losses, though it was partially offset by lower non-fund-based income, increased tax expenses, higher operating costs, and a greater share of loss in associates. Despite the profit rise, revenue decreased slightly to RM4.39 billion from RM4.40 billion in the first quarter of 2024.
In a filing with Bursa Malaysia, RHB Bank disclosed that net fund-based income grew by 7.3 percent to RM1.48 billion year-on-year, driven by a 6.3 percent growth in gross loans and financing. The group’s gross loans and financing reached RM239.2 billion, supported by mortgage, corporate, commercial, and auto finance sectors.
RHB Banking Group’s group managing director and group chief executive officer, Datuk Mohd Rashid Mohamad, noted that the company’s earnings growth momentum in the first quarter was sustained by solid fundamentals and early progress from the group’s three-year PROGRESS27 strategic roadmap. He emphasized that cost optimization efforts are yielding results, allowing expense management while fostering growth in key areas.
Datuk Mohd Rashid Mohamad also mentioned the group’s continued focus on asset quality, which has resulted in a reduction in credit cost. He highlighted the group’s disciplined execution, enhanced core capabilities, operational excellence, and exploration of new growth opportunities.
Looking ahead, the group remains cautious due to evolving macroeconomic conditions influenced by interest rate changes and global trade dynamics. The recent reduction in the statutory reserve requirement by Bank Negara Malaysia is anticipated to offer funding flexibility in upcoming quarters. With focused execution priorities, including simplifying customer experiences and advancing sustainability goals, the group aims to deliver immediate value while unlocking long-term value for stakeholders.