RHB projected to log 50% full cash divided payout ratio for 2024

The Malaysian bank is on track to surpass its 4.5% loan growth target.

RHB Bank is projected to have a 50% full cash dividend payout ratio for 2024, offering a 5.6% yield, following a 28% year-on-year expansion on its Q3 net profit.

“If the payout ratio were increased to 62%, as seen in 2023 with the dividend reinvestment plan, the cash dividend yield could rise to an attractive 6.8%,” UOB Kay Hian analyst Keith Wee Teck Keong said in a report of the bank following its Q3 financial results.

The Malaysian bank is also expected to surpass its loan growth target of 4.5% for the full year.

Growth was driven by mortgages rising 8.8% in Q3.

Auto loans (12.8%) and commercial banking loans (20.2%) logged double-digit growth during the quarter.

Loan growth was tempered by contractions in corporate loans and overseas loans.

Net credit costs are estimated to fall between 20-25 basis points (bp), and the bank’s net interest margin is likely to fall between 1.82% to 1.88%.

RHB saw its net profit rise by 28.2% YoY to MYR833.2m in Q3 2024, bringing its 9M 2024 earnings to MYR2.28t or 2.9% YoY higher.