RHB

[winston]

not vested in RHB; vested in OSK

Will RHB-AMMB merger materialise?

BY GURMEET KAUR and M. SHANMUGAM

While the EPF, ANZ and Azman are keen on a merger, institutional shareholders and costs may be a stumbling block

Source: The Star

http://www.thestar.com.my/business/busi ... DVDKqzY.99

[winston]

not vested

Proposed merger plan credit positive for AmBank but less for RHB — Moody’s

by Wong Ee Lin

Potential benefits to RHB are discounted by its likely operating challenges to rationalise the organisational structure and infrastructure of the newly-merged entity, Moody’s said in a note today.

Source: The Edge

http://www.theedgemarkets.com/article/p ... %94-moodys

[winston]

not vested

Trading Buy: RHBBANK - 1066
(Last price: RM5.15, Potential upside +8.5%)

Company Profile
• The 4th largest banking group in Malaysia.

Trading Catalyst

• We see attractive proposition in RHBBANK due to its compelling valuations at 0.95 P/BV (31% lower than peers’ 1.37x P/B) and 9x FY18 P/E (24% discount against its peers’ 11.8x), supported by a strong 14% earnings CAGR for FY17-19s

• Given its strong backing from EPF (~41%), we do not discount the possibility that RHBBANK to emerge again as an anchor in the next wave of banking M&A to enlarge market dominance.

• Technically trending within a positive uptrend channel.

Technical View
• Resistance: RM5.29 / RM5.40 / RM5.59
• Support: RM5.08 / RM4.96
• Cut loss: RM4.93

Key Financial Stats
• Strong FY17-19 EPS CAGR ~14%
• Undemanding FY18 PE 9x and 0.95x P/B

Source: Bloomberg, HLIB

[winston]

not vested

Trading Buy: RHBBANK-1066
(Last price: RM5.39, Potential upside +8.9%)

Company Profile
• RHBBANK (41% owned by EPF) is the 4th largest fully integrated financial services group in Malaysia. Its core businesses are streamlined into seven main business pillars, namely Group Retail Banking, Group Business & Transaction Banking, Group Wholesale Banking, Singapore Business Operations, Group Shariah Business, Group International Business and Group Insurance.

Trading Catalyst
• HLIB has a BUY rating with TP of RM6.00, or 11.3% upside.
• It remains a top pick for the sector, premised on (1) attractive valuations, currently at 2018E P/E of 9.7x (22% lower against industry 12.4x) and P/BV of 0.93x (32% discount against peers 1.37x)
• Expected to benefit from its ongoing transformation programme and the end of impairment, which reinforce our projected FY17-19 EPS CAGR of 14%.
• Upside bias towards RM5.61-5.87 amid bullish double bottom pattern.

Technical View
• Resistance: RM5.51 / RM5.61 / RM5.87
• Support: RM5.29 / RM5.23
• Cut loss: RM5.14

Key Financial Stats
• Trading at 0.93x P/B, supported by a strong FY17-19 EPS CAGR of 14% and decent DY of 3.2% for FY18-19.

Source: Bloomberg, HLIB

[winston]

not vested

Aabar puts 120 million shares in RHB Bank on the block

KUALA LUMPUR: Aabar Investments PJS is seeking to reduce its stake in RHB Bank Bhd.

Shares in RHB Bank were last traded at RM5.34 on Tuesday.

Aabar is seeking to raise as much as RM623mil from the disposal of the 3% block in RHB Bank. Aabar owns 711.8 million shares, or a 17.75% stake in RHB Bank.

The joint book runner for the programme are CIMB and JP Morgan.

Source: The Star

https://www.thestar.com.my/business/bus ... lHYvfsU.99

[winston]

not vested

Trading Buy: RHBBANK-1066
(Last price: RM5.60, Potential upside +8.9%)

Company Profile
RHBBANK is the 4th largest banking group (by assets) with a decent Singaporean exposure.


Trading Catalyst

Although RHBBANK is likely to witness temporary share price overhang following media reports that Aabar Investments PJS (a passive investor) is planning to pare down its remaining 9.99% stake (400.52m shares) at ~RM5.64/share, any price weakness represents accumulation opportunity as the risk-reward profile is still skewed to the upside.

HLIB maintains a BUY rating on the stock with RM6.50 TP (+16% upside), underpinned by better asset quality, strong CET1 ratio 15.5% vs sector’s 13.7% (which allows room to divvy even more), undemanding valuations at 9.1x FY20 P/E (28% lower than peers) and 0.92x P/B (25% discount to peers), attractive FY20 dividend yield of 3.9% (16% higher than its peers) and improving liquidity and free float post 100% Aabar’s exit.

Technically, the stock is poised for a downtrend reversal to retest RM5.74-6.10 levels following the long-legged Doji pattern and bottoming up indicators

Technical View
Resistance: RM5.74 / RM5.88 / RM6.10
Support: RM5.50 / RM5.38
Cut loss: RM5.37

Key Financial Stats
Trading at 9.1x FY20E P/E (28% lower than peers) and 0.92x P/B (25% lower than peers), supported by a 3.9% DY.

Source: Bloomberg, HLIB

[winston]

not vested

Sep 19, 2022

Sustainability trends moving in right direction

BUY maintained

We have introduced an expanded ESG tear sheet for RHB and assigned it an above average overall score of 65, based on its aggregated quantitative / qualitative / target-based metrics.

RHB’s sustainability disclosures are comfortable but there is room for further improvement in terms of its commitments.

BUY maintained with an unchanged TP of MYR7.10 (FY23E PBV target of 0.95x, supported by a FY23E ROE of 9.8%). FY22E dividend yield is attractive at 5.2%.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/280288.pdf

[winston]

not vested

RHB Bank records net profit of RM700.48mil in Q3

Earnings per share was 16.63 sen compared with 15.64 sen in the previous same quarter.

Revenue was reported at RM3.48bil, up from RM3.03bil in the comparative quarter.

The group's gross impaired loans was RM3.3bil as at September 2022 with gross impaired loans ratio of 1.57%, compared with RM3.3bil and 1.62% respectively in June 2022.

Loan loss coverage ratio for the group, excluding regulatory reserves, remained strong at 118.1% as at end-September 2022, compared with 122.4% in December 2021.

Source: The Star

https://www.thestar.com.my/business/bus ... 8mil-in-q3

[winston]

not vested

1Q Results:-

Revenue: +0%; RM 4.4b
EPS: +1%; RM 750m
Net Asset: RM 7.39

https://www.bursamalaysia.com/market_in ... id=3557176

[winston]

not vested

RHB Bank Berhad - 1QFY25 Net Profit Up 2.7% YoY
Date: 2025-05-29
Firm: TA
Stock: RHBBANK
Price Target: 7.52
Price Call: BUY
Last Price: 6.30

Review

RHB Bank reported higher 1QFY25 results, with the net profit climbing 2.7% YoY to RM750mn from RM730mn in 1QFY24 due to lower allowances for credit losses.

Results came within expectations as net profit accounted for 23% of our full-year forecast.

Annualised ROE stood at 9.08%, a slight decline vs 9.16% last year.

1QFY25 net fund-based income increased at an encouraging pace of 7.3% YoY.

Net Interest Margin (NIM) was stable at around 1.84% (1QFY24: 1.83%).

QoQ, domestic NIM rose 1 bp underpinned by prudent domestic funding cost management.

The net fund-based income also grew due to loan growth of 6.3%.

The loan increase was led by domestic operations (+7.9% YoY), where Community Banking rose by 6.6% YoY.

The Retail segment expanded by 8.0% due to mortgages (+8.5% YoY), auto finance (+10.9% YoY), and unsecured business loans (+8.6% YoY), while the SME segment broadened by 0.8% YoY.

Group Wholesale Banking climbed at a stronger pace of 11.7% YoY, underpinned by higher Corporate and Commercial loans of 9.0% and 24.9%, respectively.

By geography, overseas loans contracted by 2.5% YoY.

Total customer deposits declined by 1.1% YoY. CASA deposits fell by 1.1% YoY to around RM69.6bn. However, CASA climbed QoQ, driven by retail CASA, while fixed/investment deposits contracted by 1.0% QoQ to RM178.9bn on the back of efforts to rebalance the portfolio, reduce reliance on pricier corporate deposits and raise retail CASA. With that, the CASA ratio improved to 28.0% vs 27.6% in 4QFY24.

1QFY25 non-fund-based income declined by 20.2% YoY, attributed to a contraction in treasury income (-34.7% YoY) where net forex gain/derivatives reduced by 27.8% YoY to RM191mn (1QFY24: RM264mn) while Gains & MTM on Securities fell by 48.1% YoY.

Meanwhile, fee income strengthened by 1.1% YoY, underpinned by IB Related fees (+8.0% YoY), Other Services and Commission Income (+7.1% YoY) and Asset Management (+1.3% YoY).

Brokerage income, however, declined by 21.7%.

1QFY25 operating expenses expanded by 12.0% YoY, led by Marketing expenses (+28.6% YoY) and Establishment Costs (+0.8% YoY), of which most of it was for IT enhancements (+9.3% YoY). Personnel Costs and Admin & General Expenses, meanwhile, declined by 0.5% and 6.9% YoY, respectively.

However, on the back of negative JAWs, the 1QFY25 costto-income (CTI) ratio rose to 47.4% vs 46.7% in FY24.

YoY, total allowances improved to RM106mn vs. RM215mn a year ago. The credit cost fell to 17 bps from 38 bps in 1QFY24 due to lower domestic ECL and the absence of a one-off Internal Business ECL last year.

Meanwhile, RHB’s gross impaired loans (GIL) ratio weakened slightly to 1.50% vs 1.47% in FY24, while the loan loss coverage (without Regulatory Reserves) slipped to 76.9% from 78.6% in FY24.

RHB Bank Group’s capital remains healthy, with a CET1 and Total Capital Ratio ending March 2026 at 16.0% and 18.5%, respectively. The liquidity coverage ratio stood at 134.6% (December 2024: 137.8%).

Source: TA

https://klse.i3investor.com/web/priceta ... arch/75429