KUALA LUMPUR, Aug 27 — RHB Bank Bhd’s shares traded higher this morning after posting better-than-expected second quarter financial results.
At 12.10pm, the bank’s shares gained eight sen to RM5.70 with 2.92 million shares traded.
Maybank Investment Bank in a research note today said RHB Bank’s first half financial year 2019 net profit was above its expectations at 53 per cent and consensus’ full-year forecasts.
“The results were in line at the operating level and the primary variance was the credit cost, which was lower than expected,” it said.
Kenanga Investment Bank in another note said the RHB Bank management had maintained its financial year 2019 return on equity estimates of 10.5 per cent, and expected loans growth to be on target at five per cent year-on-year, driven by mortgage and demand from small and medium enterprises.
However, the investment bank said the key risk to RHB Bank included a steeper margin squeeze, higher-than-expected loans and deposits growth, lower-than-expected rise in credit charge and a further slowdown in capital market activities.
Maybank Investment has maintained a “buy” call and target price of RM6.50 on RHB Bank, while Kenanga retained an “outperform” valuation and target price of RM6.05. — Bernama
