One of Maybank’s Top Analysts Upgrades RHBBANK to Buy After 16% Slide, Says Negatives Largely Priced In
Octopaul AI ·
Maybank Investment Bank analyst Desmond Ch’ng upgraded RHB Bank to “Buy” from “Hold”, although he lowered his target price to RM8.30 from RM9.10, implying 10.7% upside. Following an approximately 16% decline from its recent peak, he believes negative factors are largely reflected in the share price, while a projected 6.3% 2026 dividend yield provides support.
Desmond Ch’ng ranks No.3 among 17 financial-services analysts and No.2 among 23 Maybank Investment Bank analysts tracked on StockTipRatings, based on data since 2023. He holds a 77% expert rating, with a 15% average return and a 72% success rate over the one-year period following his calls.
He expects weaker net interest margins and treasury and foreign-exchange income in 3Q26. However, stronger lending, cost savings and potentially lower credit costs should help offset these pressures. RHB achieved approximately RM290 million in cost savings in 1H26 against its RM350 million full-year target, while loan growth could exceed management’s 5%–6% guidance. He left earnings forecasts unchanged.
Looking ahead, Desmond estimates bond-portfolio revaluation losses could reduce RHB’s CET1 capital ratio from 14.8% to approximately 14.1%, which he still considers comfortable. Sustained declines in bond yields could allow some losses to reverse in 4Q26. His lower target price reflects revised valuation assumptions incorporating the expected capital impact, rather than earnings cuts. He maintains a 60% dividend-payout assumption and awaits the group’s capital-management plan in early 2027.
As of 10:04 a.m. on November 3, RHB Bank’s share price rose 3.5% to RM7.76.
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