RHB Bank’s Singapore unit surged nearly 96% in pretax profits in 2024 and aims for a 12% return on equity by 2027, signaling a sharpened focus on digital innovation and regional expansion.
Financial Performance Snapshot
Pretax profit reached S$98.7 million in 2024, nearly doubling year-on-year. The unit credits digital enhancements and increased traction with SMEs and high-net-worth clients.
Strategic Outlook
RHB Singapore is targeting an ROE of 12% by 2027 and plans to lower its cost-to-income ratio to under 44.8%, while reducing impaired loans below 1.3%. These goals support its ambition to become a regional wealth banking nexus.
Synergies and Regional Role
The Singapore branch acts as a gateway to ASEAN expansion. With operations in Malaysia, Thailand, Cambodia and Brunei, it leverages Singapore’s regulatory clarity and business-friendly environment.
Execution Challenges
To sustain growth, RHB must compete with entrenched incumbents like DBS, OCBC, and UOB while preserving asset quality and cost discipline amid margin fluctuations.
Editor’s Note
RHB’s rapid ascent underlines how secondary tier banks can thrive through nimble positioning and digital outreach. Watch whether operational discipline keeps pace with ambition.
Tags
RHB Singapore, ROE target 2027, ASEAN banking, digital banking, profitability growth