KUALA LUMPUR, 27 February 2026 — RHB Bank Bhd (KLSE:RHBANK) is targeting loan growth of between 5% and 6% in 2026, anchored by high-yielding segments including small and medium enterprises (SMEs), commercial financing and retail banking, amid expectations of supportive economic activity.
Group managing director and chief executive officer Mohd Rashid Mohamad said the bank’s growth strategy will continue to focus on higher-yield segments while maintaining exposure to corporate clients.
“The focus is still on the high-yield segment, especially the small and medium enterprise (SME) and commercial segments. Retail remains our main driver as well. But of course, we are not shying away from the corporate business as well,” he told reporters at a media briefing on RHB’s financial results for the financial year ended Dec 31, 2025 (FY2025).
NIM, CASA And Digital Banking Momentum
Mohd Rashid said the group expects its net interest margin (NIM) to improve in 2026, supported by stronger current account savings account (CASA) momentum, which has exceeded 30% under initiatives rolled out via its Progress27 corporate strategy.
He noted that the expansion of multi-currency accounts and the MySiswa programme across public, private and government-linked universities would continue supporting low-cost deposit growth and optimising the funding mix.
Beyond interest income, the bank anticipates stronger non-interest income contributions driven by wealth management expansion, improved transaction banking services and payments innovation aimed at enhancing customer engagement and fee-based earnings.
On digital banking, Mohd Rashid said Boost Bank, in which RHB holds a 40% stake, is showing improving performance.
“The performance and trajectory of Boost Bank are very promising… we see losses that we incurred over the last couple of quarters have also come down, especially with the launch of lending products that support profitability.
“We only see Boost Bank as complementary to the bank. Certain segments of the market are unbanked by RHB, and these will be the focus of the Boost Bank businesses,” he added.
Strong Ringgit And Sustainable Finance Target
On the strengthening ringgit, Mohd Rashid said it could benefit the banking sector by lowering imported inflation and improving customers’ repayment capacity.
“A stronger ringgit is both positive and an offset to the banking sector. On the positive side, it reduces imported inflation and supports customers by allowing them to pay less for imported goods, which could ultimately improve asset quality by strengthening repayment capacity.
“We are well-positioned with a strong capital and equity base and conduct regular stress testing, and a stronger ringgit will have minimal impact on our business,” he said.
Separately, RHB is confident of achieving its RM90 billion sustainable finance target under Progress27, potentially ahead of its 2027 deadline. The bank has already achieved approximately RM60 billion under the programme as of FY2025.
“We have a target for 2027, and we are very confident that we will achieve it. In fact, I can share with you that we potentially will hit the RM90 billion even earlier than 2027,” Mohd Rashid said.
On cost optimisation, RHB will continue its programme targeting cumulative savings of up to RM800 million by 2027, after achieving RM158 million in savings in the first year.
FY2025 Results
In a filing with Bursa Malaysia, RHB disclosed that net profit rose 7.8% to RM3.36 billion in FY2025 from RM3.12 billion a year earlier.
Revenue was marginally higher at RM17.92 billion compared with RM17.91 billion previously.
For the fourth quarter (4QFY2025), net profit improved to RM905.71 million from RM834.54 million, while revenue was marginally lower at RM4.50 billion from RM4.58 billion in the corresponding quarter.
RHB declared a second interim dividend of 35 sen per share, bringing total FY2025 dividends to 50 sen per share, translating into a 65% payout ratio and a 6.5% dividend yield.
The bank said its resilient performance was underpinned by higher total income, disciplined cost management and improved credit quality, reflecting solid fundamentals and prudent execution across its core businesses.
