RHB Bank stock faces Q3 pressure as bond yields rise

Published on 10/06/2026 at 12:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

RHB Bank stock was MYR 7.43 on October 6, 2026, while HLIB kept its MYR 8 target. First-half net profit reached RM1,663.9 million, up 7.1 percent year over year.

RHB Bank, MYL1066OO009, Illustration mit AI erstellt.

RHB Bank (ISIN MYL1066OO009) was trading at MYR 7.43 on Bursa Malaysia on October 6, 2026 at 4:52 p.m. MYT, down MYR 0.03 or 0.40 percent from the prior close. The immediate issue is third-quarter pressure from higher Malaysian Government Securities yields, although management sees room to reposition the portfolio in the fourth quarter.

Q3 pressure meets a stronger 4Q view

The Star reported on October 6, 2026 that RHB Bank management sees sufficient runway to capture market opportunities in 4Q26 after elevated MGS yields weighed on third-quarter non-interest income. Hong Leong Investment Bank kept a Hold rating and an MYR 8 target price.

HLIB expects the bank's trading income to face pressure in 3Q26, while wealth, bancassurance, brokerage and loan-related fees could provide a partial offset. Management's return on equity target remains 10.8 percent to 11 percent, with loan growth targeted at 6 percent and cost growth reset to 1 percent or less, according to The Star.

First-half profit rose 7.1 percent

RHB Bank's first-half 2026 net profit rose 7.1 percent year over year to RM1,663.9 million. Net interest income reached RM2,045.8 million, up from RM1,962.7 million in the comparable period, while operating profit before allowances increased to RM2,319.3 million from RM2,216.4 million, according to Quartr in its September 7, 2026 summary of the bank's investor materials.

The earnings mix explains the market sensitivity. Higher funding income and lower credit loss allowances supported the first half, while lower non-fund income and higher operating expenses limited the upside. Basic earnings per share increased to 38.15 sen from 35.64 sen, and the cost-to-income ratio improved to 46.8 percent from 47.3 percent.

Consensus points to MYR 9.014

MarketScreener lists an Outperform mean consensus from 15 analysts and an average target price of MYR 9.014. HLIB's separate MYR 8 target is more cautious, making the bank's near-term trading income and capital policy important tests for the broader earnings view.

Stock stays below its yearly high

RHB Bank stock was trading at MYR 7.43 on Bursa Malaysia on October 6, 2026 at 4:52 p.m. MYT, with a session range of MYR 7.42 to MYR 7.47. The market capitalization was MYR 32.4 billion and volume was 7,158,700 shares.