RHB Bank sees loan growth of up to 5% in FY22 | Money

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File photo of RHB headquarters in Kuala Lumpur. — AFP photo

KUALA LUMPUR, 28th February – RHB Bank Bhd expects its loan growth to be between 4.0% and 5.0% in the fiscal year ending 31st December 2022 (FY22) from 6, 7% last year, mainly from the small and medium-sized enterprises (SMEs) retail and commercial segments.

The bank expects its gross impaired loan ratio to be below 1.7% in FY22.

Mohd Rashid Mohamad, Head and Senior Director of RHB Banking Group, said the momentum of economic activities has continued to gather momentum this year, which will further support the bank moving forward.

“Loan growth from the perspective of large companies, we believe that large companies will mainly go into the securities or capital markets and raise funds there. There is a lot of liquidity there and the prices are quite attractive.

“In fact, we’re seeing a lot more activity coming over the past two months and the pipeline is also showing a very positive trend in corporate fundraising in the capital market,” he said. to reporters after announcing the group’s financial performance ended December 31, 2021. (FY21) held virtually today.

Also in attendance were RHB Banking Group Chief Financial Officer Nik Rizal Kamil and Group Community Banking Managing Director Jeffrey Ng.

The bank also expects the Overnight Policy Rate (OPR) to gradually normalize towards the end of this year and have minimal impact on RHB Bank, according to Mohd Rashid.

The bank sees its net interest margin (NIM) moderate to 2.11% this year, mainly due to the repricing of most term deposits which was completed in the first half of 2021.

RHB would also focus on growing its Current Account Savings Account (Casa) this year.

“We want to maintain our (Casa) composition of 30% of total deposits,” Mohd Rashid said.

The group sees its return on equity (ROE) for FY22 lower, as it has already factored in the prosperity tax imposed on the bank.

“If we normalize that, our target is 10% ROE for FY22. (But) with the impact of the prosperity tax it will be 8.5%. That’s how it will impact our bottom line at the end of the day,” he added.—Bernama

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