[RAM] RAM Ratings assigns P1 ratings to RHB Bank's proposed RM5 bil Commercial Papers and Islamic Commercial Papers programmes

RAM Ratings has assigned P1 ratings to RHB Bank Berhad’s (RHB Bank or the Group, rated AA₁/Stable/P1) proposed Multi-Currency Commercial Papers and Islamic Commercial Papers Programmes with a RM5 billion combined limit. 

RHB Bank’s RM354 bil of total assets as at end-June 2025 make it the fourth-largest financial services group in Malaysia, contributing between 8% and 9% shares of the domestic banking system’s deposits and loans. The Group’s capitalisation remains a key credit strength, with post-dividend common equity tier-1 capital ratios consistently above 15% in the last few years (end-June 2025: 15.9% versus industry average of 14.3%). 

Asset quality showed an improvement, with the Group’s gross impaired loan (GIL) ratio declining to 1.51% as at end-June 2025 (end-December 2023: 1.74%) while the Group’s domestic book GIL ratio of 1.27% continues to outperform the industry’s 1.42%.

In the 18-month period ending 30 June 2025, the Group’s net interest margin stayed stable, declining only 2 bps, in line with industry trends. Diversified income streams continue to support RHB Bank’s earnings profile, resulting in a strong pre-tax return on risk-weighted assets of 2.6% on average for the period. Despite normalised credit costs and a larger cost base, pre-tax profit rose to RM4.0 bil in FY Dec 2024 (+7% y-o-y), backed by stronger non-interest income mainly from fees, foreign exchange gains and treasury activities. In 1H FY Dec 2025, lower impairment charges helped push pre-tax profit up 6% y-o-y to RM2.0 bil. 

The Group’s funding and liquidity profile remains sound, with current and savings account and retail deposits constituting a respective 28% and 45% of total customer deposits as at end-June 2025 (end-December 2023: 28% and 41%).


Analytical contacts
Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my

Sophia Lee
(603) 2708 8211
sophia@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my