RHB expected to pay 47 sen dividend for 2026
Kenanga upgraded the bank to ‘outperform’ after its shares fell 12% over the past three months, keeping its RM8.40 target price.
RHB Bank Bhd is expected to distribute a 2026 dividend of 47 sen per share despite rising bond yields, according to Kenanga Investment Bank. The research house assessed the potential hit to the bank’s capital from RM5.9 billion of fixed income securities at around 32 basis points.
Following a meeting with the bank, Kenanga described that impact as manageable. It said profits were the more important factor in determining dividend payments and did not consider capital adequacy to be in doubt.
Kenanga’s recommendation moved to ‘outperform’, equivalent to ‘buy’, following a 12% fall in RHB’s share price over the past three months. Its target price was held at RM8.40.
At the end of June, RHB had a common equity tier-one capital ratio of 14.8%. Kenanga said a capital strategy would be announced around January-March of 2027.
Under Basel 3 final reforms, RHB’s use of an internal ratings-based approach could initially add 100 basis points to its capital ratio, Kenanga said. A reversal of 45 basis points over five years would follow.
