Maybank IB Upgrades RHB Bank to Buy, Cuts Target Price
Maybank IB upgrades RHB Bank to buy from hold in a note, citing a roughly 16% fall from its peak and an estimated 6% dividend yield for 2026.
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what happened
Market Talk reports that Maybank IB has raised its rating on RHB Bank to buy from hold, based on analyst Desmond Ch'ng's view that the bank's main concerns are already reflected in the share price. The stock is about 16% below its recent high of 8.88 ringgit, and an estimated dividend yield of around 6% for 2026 adds further support.
Ch'ng expects net interest margins and non-interest income to soften in the third quarter, but he thinks faster loan growth, cost savings and smaller credit loss provisions will make up the difference. Higher bond yields could put pressure on capital ratios, though he considers RHB's capital position likely to stay comfortable. Maybank IB lowered its target to 8.30 ringgit from 9.10 ringgit, partly because rising yields weigh on capital. The shares rose 1.3% to 7.58 ringgit.
why it matters
For investors, the emphasis has shifted from margin worries toward whether the lower share price makes the valuation more appealing. The main risk to capital is the path of bond yields, so RHB's sensitivity to rate moves remains a key factor to watch. This is one broker's view, not a guarantee of future performance.
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sources
- RHB Bank's Valuation Could Turn Attractive — Market Talk, 3 November 2026 at 01:11 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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