The research firm observed that the bank’s loan loss coverage of 83% is on par to pre-pandemic level of circa 85%. The bank’s loan growth had lost some traction, while gross impaired loan ratio had nudged up sequentially.įollowing a downward revision in NIM guidance, HLIB Research said it is cutting financial year 2023 (FY23) to FY25 earnings by 9% to 10%. “This was within expectations, making up 50% to 53% of both our and consensus full-year forecasts,” said HLIB Research.
In 2Q23, RHB Bank posted a net profit of RM809mil, an increase of 28% year-on-year, bringing profitability for the first half of financial year 2023 (1H23) to RM1.6bil. “Also, we observed current NIM has fallen below pre-pandemic level of 2.10% to 2.20%, indicating a limited downside from hereon,” it said in a note to clients. “Hence, FDs of January to March 2023, which are bound for expiration, will likely start to be repriced at lower rates. While the bank’s net interest margin (NIM) had compressed, Hong Leong Investment Bank (HLIB) Research sees NIM stabilising from 3Q23 onwards as competition for fixed deposit (FD) is benign. PETALING JAYA: RHB Bank Bhd’s results for the second quarter ended J(2Q23) came largely within analysts’ expectations, thanks to management overlay writebacks.
