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Research by HLIB
Buy - TP RM6.75

"A laggard play potential"

RHB’s 2Q24 profit fell 1% QoQ no thanks to higher effective tax rate and opex. That said, NIM widened sequentially, loans growth gained traction, and GIL ratio fell. Overall, results were in line and thus, forecasts were kept. All in all, we now
find that RHB’s risk-reward profile to be skewed to the upside. The stock offers attractive dividend yield of 6-7% (2ppt higher vs peers), is a prime laggard play potential, and is a KLCI index component. Raise to BUY with a higher adjusted provision-BVPS GGM-TP of RM6.75 (from RM6.10), based on 0.9x FY25 P/B.

Analyst:
Chan Jit Hoong, CFA, CPA
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$KLSE-RHBBANK
Research by HLIB
Buy - TP RM6.75

"A laggard play potential"

RHB’s 2Q24 profit fell 1% QoQ no thanks to higher effective tax rate and opex. That said, NIM widened sequentially, loans growth gained traction, and GIL ratio fell. Overall, results were in line and thus, forecasts were kept. All in all, we now
find that RHB’s risk-reward profile to be skewed to the upside. The stock offers attractive dividend yield of 6-7% (2ppt higher vs peers), is a prime laggard play potential, and is a KLCI index component. Raise to BUY with a higher adjusted provision-BVPS GGM-TP of RM6.75 (from RM6.10), based on 0.9x FY25 P/B.

Analyst:
Chan Jit Hoong, CFA, CPA
jhchan@hlib.hongleong.com.my