Latest news with #MohdRashid
The Star
3 days ago
- Business
- The Star
RHB sustains growth
PETALING JAYA: RHB Bank Bhd (RHB) is keeping a cautious stance amid evolving macroeconomic conditions, shaped by interest rate movements and global trade dynamics, although it expects the recent reduction in the statutory reserve requirement by Bank Negara to provide funding flexibility in the quarters ahead. In addition, the lender is projecting for the banking sector to maintain its strong capital and liquidity positions. RHB's group managing director and group chief executive Datuk Mohd Rashid Mohamad said the bank's new three-year strategic roadmap, named PROGRESS27, has set a clear course for the lender toward becoming the best in service, enhancing profitability and reinforcing its purpose-driven commitment. 'With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders,' added Mohd Rashid. Releasing its results for the first quarter ended March 31 (1Q25) yesterday, RHB saw net profit inch up by 2.7% year-on-year (y-o-y) to RM750mil, despite a marginal dip in revenue to RM4.39bil. The 1Q25 performance translates to an earnings per share of 17.2 sen. The group attributed the growth in net profit primarily to higher net funding income and improved credit cost management, which was offset by lower non-fund based income, higher tax expense, higher operating expenses and higher share of loss in associates. At the same time, it reported that total income stood at RM2bil, a marginal dip of 1.9% y-o-y mainly from contraction in non-fund based income due to lower net gain on foreign exchange (forex) and derivatives, as well as net trading and investment income. RHB said it has maintained operational stability, supported by prudent cost management, continued strength in capital and liquidity positions, reflected by the containment of cost growth at 1.2%, while cost-to-income ratio stood at 47.4% from 45.9% a year ago, reflecting the marginal contraction in income. Commenting on the results, Mohd Rashid remarked that the sustaining of the bank's earnings growth momentum in 1Q25 was underpinned by solid fundamentals and early traction from its PROGRESS27 strategy. 'Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. 'At the same time, our continued focus on asset quality has led to a reduction in credit cost. We remained disciplined in execution, strengthening our core capabilities, driving operational excellence, and unlocking new growth opportunities.' Net fund based income increased by 7.3% to RM1.49bil y-o-y on the back of gross loans and financing growth of 6.3%, while non-fund based income declined by 20.2% to RM561mil from a year ago, driven by lower net trading and investment income, lower net gain on forex and derivatives as well as lower income from its insurance business, partly offset by higher fee income. Net allowance for credit losses was lower at RM105.8mil, primarily due to lower credit losses on loans and financing. Meanwhile, total assets of the group increased by 0.7% from December 2024 to RM352.5bil as at March 31, 2025, with net assets per share at RM7.39, and shareholders' equity at RM32.2bil. Concurrently, the group's gross loans and financing grew by 6.3% y-o-y to RM239.2bil, mainly supported by growth in mortgage, corporate, commercial and automotive finance. RHB's gross impaired loans (GIL) increased marginally to RM3.6bil, with a GIL ratio of 1.50%, from 1.47%, or RM3.5bil in December 2024. The group reported a domestic GIL ratio of 1.22%, which is lower than the banking industry's GIL ratio of 1.42%. Loan loss coverage ratio for the group, including regulatory reserves, improved to 115.7%, while it stands at 76.9% if regulatory reserves are excluded. Customer deposits increased by 2.3% to RM248.5bil, primarily due to growth in money market time deposits by 31.3%, offset by a decrease in current accounts and saving accounts (Casa) by 1.1% and fixed deposits by 0.9%. Casa composition stood at 28.0% as at March 31, 2025, and liquidity coverage ratio remained sound at 134.6%. Compared to the previous quarter ended December 2024, RHB saw net profit decrease by 10.1% from RM834.5mil, which it attributed mainly to lower non-fund based income and higher allowances for credit losses. These were partly offset by lower operating expenses, higher net funding income, lower impairment on other non-financial assets and lower share of loss in associates during 1Q25. RHB did not declare any dividends for the quarter.
The Sun
3 days ago
- Business
- The Sun
RHB posts RM750m first-quarter net profit
KUALA LUMPUR: RHB Bank Bhd registered a net profit of RM750 million in the first quarter of its financial year ending Dec 31, 2025 (Q1'25), an increase of 2.7% from the previous corresponding period. This was primarily attributed to higher net fund-based income and improved credit cost management, reflecting the group's disciplined risk management and strong base. Total income stood at RM2 billion, a marginal dip of 1.9% Y-o-Y mainly from contraction in non-fund based income due to lower net gain on forex and derivatives, and net trading and investment income. The group maintained operational stability, supported by prudent cost management, continued strength in capital and liquidity positions. Cost growth was contained at 1.2% whilst CIR stood at 47.4% from 45.9% a year ago, reflecting the marginal contraction in income. RHB Banking Group managing director/group CEO Datuk Mohd Rashid Mohamad remarked, 'We sustained our earnings growth momentum in the first quarter, underpinned by solid fundamentals and early traction from our PROGRESS27 strategy. Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. At the same time, our continued focus on asset quality has led to a reduction in credit cost. We remained disciplined in execution, strengthening our core capabilities, driving operational excellence, and unlocking new growth opportunities.' The group's total assets rose to RM353 billion, supported by healthy balance sheet growth and prudent capital management. At group level, the shareholders' equity stood at RM32 billion, with the Common Equity Tier-1 (CET-1) ratio of 16% and Total Capital Ratio (TCR) at 18.5%, reinforcing a strong capital position to support future growth ambitions, as well as to cushion macroeconomic uncertainties. Whereas the bank's CET-1 and TCR stood at 14.7% and 17.4%, respectively. Loan loss coverage ratio including regulatory reserves, improved to 115.7%, reflecting sound provisioning practices. Domestic loan growth of 4.7% (annualised) outpaced the industry's 4.3%, while the group's GIL ratio remained well-contained at 1.5%, and the domestic GIL ratio was below the industry average, demonstrating sound credit quality. The group remains cautious amid shifting rates and global trade uncertainty. The recent reduction in Statutory Reserve Requirement by Bank Negara Malaysia is expected to provide funding flexibility in the quarters ahead. 'Our new 3-year strategic roadmap, PROGRESS27, sets a clear course towards becoming the best in service, enhancing profitability, and reinforcing our purpose-driven commitment. With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders,' said Mohd Rashid.
The Star
5 days ago
- Business
- The Star
BANK EMPOWERS OVER 700 MICRO-ENTREPRENEURS
Mohd Rashid (third left), RHB managing director of group community banking Jeffrey Ng Eow Oo (second right) and group chief brand and customer experience officer Norazzah Sulaiman (second left) capturing a victorious moment with #JomBiz Cohort five winners (from left, holding mock cheques) Nur Shawani, Nurul Farhana and Mohd Shafiq. KUALA LUMPUR: RHB Banking Group (RHB) celebrates the continued success of its #JomBiz programme, a socio-economic empowerment initiative aimed at empowering B40 micro entrepreneurs. Since launching in 2022, the programme has invested over RM1.1mil, benefitting more than 700 micro-entrepreneurs and delivering an impressive 35% average sales growth within just three months. The 2025 RHB #JomBiz Award Ceremony held on Feb 10 celebrated these remarkable achievements of selected micro entrepreneurs from RHB #JomBiz, showcasing the programme's critical role in providing funding, capacity building, and mentorship to micro, small and medium enterprises (MSMEs) from the B40 group and underserved communities. The ceremony recognised the recipients of business incentive funding from Cohort 5 of the #JomBiz programme. Participants undergo capacity-building classes on topics such as social media marketing, sustainable business practices and financial management. Following these sessions, they present their business plans to a panel of judges, with the top 10 proposals receiving initial funding ranging from RM5,000 to RM15,000 to support their business growth. RHB group managing director/group chief executive officer Datuk Mohd Rashid Mohamad emphasised RHB's commitment to supporting micro-entrepreneurs, 'We recognise the immense potential of MSMEs in transforming lives and uplifting communities, but we also acknowledge the challenges they face such as limited access to funding, lack of business knowledge and the difficulty of building networks within competitive markets. Mohd Rashid (front, fourth left) showing thumbs up with his team, Ng (front, fourth right), Norazzah (front, third left), together with guests, winners and participants of the RHB #JomBiz programme, during the RHB #JomBiz award ceremony 2025 held at RHB Centre, Kuala Lumpur. 'This initiative reflects our unwavering commitment to driving growth, fostering resilience and empowering participants to overcome obstacles and thrive in today's dynamic economy.' At the graduation ceremony of Cohort 5, Mohd Rashid also shared inspiring success stories from the programme, including participants who secured franchise opportunities and supply contracts with renowned companies after attending the Franchise Expo Malaysia 2024 organised by the Malaysia Retail Chain Association. Notably, four #JomBiz participants were recognised at The Star Outstanding Business Awards (SOBA) 2023. The top 3 winners of Cohort 5's business incentive funding are: > First: Nurul Farhana Amirul Hizan, Hanawarrah Creation Enterprise (healthy dried snack food products) - awarded with RM15,000 > Second: Mohd Shafiq Ezwanie Jafri, Senju Co (pastry and bakery business) - awarded with RM12,000 > Third: Nur Shawani Che Mansur, Wisymadani Resources (agro-tourism and agro-based industry business) - awarded with RM10,000 Mohd Rashid concluded, 'These stories inspire us at RHB to continue providing more platforms for our RHB #JomBiz participants. We hope their success inspires and motivates other micro-entrepreneurs to pursue their dreams.' RHB aims to expand the #JomBiz programme in 2025 to reach more participants and broaden its impact on Malaysia's micro-entrepreneur community. The programme will continue to prioritise asnafs, single parents, and persons with disabilities, ensuring inclusive opportunities for all. Learn more about how RHB #JomBiz can help micro-entrepreneurs achieve their goals by visiting .
The Star
13-05-2025
- Business
- The Star
Banking group adopts Segamat village
(From left) Bardin, Noor Hisham, Mohd Rashid and Mohd Effendi at the Santuni Madani ceremony at Masjid Kampung Gudang Garam, Segamat. Kampung Gudang Garam's adoption under the Federal Government's Satu Pemimpin, Satu Kampung (Santuni Madani) programme by RHB Banking Group is good news for residents of the village in Johor's Segamat district. Village chief Noor Hisham Mohd Noor said it has a population of nearly 400. 'The majority of villagers are retired farmers who once worked in oil palm, rubber and durian plantations. 'We are located on the outskirts of town and there are only a few streetlights here, making it difficult for us to travel at night. 'With RHB's help, our daily commute, especially to the mosque, has become easier now that we have solar-powered lights,' he said after the Santuni Madani ceremony at Masjid Kampung Gudang Garam. He added that the initiative should be expanded so that more rural villages could benefit from the programme. Masjid Kampung Gudang Garam committee chairman Bardin Uteh also expressed gratitude for the group's support in improving the mosque and making it more comfortable. 'We hope that with this upgrade, our 40-year-old mosque can organise more activities for the community,' he said. RHB Banking Group managing director and group chief executive officer Datuk Mohd Rashid Mohamad said it had pledged nearly RM1mil over the next three years to support the Santuni Madani programme, aimed at uplifting underserved communities and bridging socio-economic gaps. 'Our involvement begins with the adoption of Kampung Gudang Garam. 'This is a reflection of our long-term pledge to walk alongside the communities we serve. 'We are focusing on two key areas: improving basic infrastructure and alleviating poverty through sustainable programmes,' he said. Among the infrastructure upgrades were repainting and renovating the mosque, installing solar-powered lights along paths leading to the mosque and cemetery as well as the provision of a new water tank. 'In the long term, we aim to make the mosque energy-efficient through a solar power system,' said Mohd Rashid. To alleviate poverty, RHB is delivering financial literacy workshops and social protection awareness programmes in partnership with agencies such as Employees Provident Fund, Social Security Organisation (PERKESO) and Amanah Saham Bumiputera. He said the group had also extended support to the nearby SMK Gemereh by conducting financial literacy programmes, offering support to 40 students from B40 families who are preparing for the Sijil Pelajaran Malaysia (SPM) and providing back-to-school kits to orphans. 'We have also donated equipment needed by the school to improve digital learning capabilities and support the integration of technology into education.' 'With SMK Gemereh included, RHB has now adopted 10 schools nationwide through its social impact initiatives. 'Our long-running corporate social responsibility programme, RHB Touch Hearts, will also be mobilised this year, with more than 13,000 employees participating in activities to deliver financial literacy and upskilling programmes for students, improving school infrastructure and supporting local communities across Malaysia and selected Asean countries,' he said. These efforts, Mohd Rashid added, aligned with the group's broader sustainability aspiration under its Progress27 three-year corporate strategy, which aims to empower 2.5 million individuals and businesses across Asean by 2027. 'Through our Santuni Madani commitment, we're not just investing in infrastructure – we're investing in people, their education and their future,' he said. Also present was RHB Banking Group southern regional director Mohd Effendi Abdul Razak.
