Earnings Update: RHB Bank Berhad (KLSE:RHBBANK) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
RHB Bank Berhad (KLSE:RHBBANK) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. RHB Bank Berhad reported in line with analyst predictions, delivering revenues of RM2.2b and statutory earnings per share of RM0.20, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from RHB Bank Berhad's 16 analysts is for revenues of RM9.32b in 2026. This reflects a satisfactory 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.3% to RM0.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM9.27b and earnings per share (EPS) of RM0.80 in 2026. So the consensus seems to have become somewhat more optimistic on RHB Bank Berhad's earnings potential following these results.
Check out our latest analysis for RHB Bank Berhad
The consensus price target was unchanged at RM8.97, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on RHB Bank Berhad, with the most bullish analyst valuing it at RM10.30 and the most bearish at RM7.95 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting RHB Bank Berhad's growth to accelerate, with the forecast 9.3% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect RHB Bank Berhad to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards RHB Bank Berhad following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at RM8.97, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for RHB Bank Berhad going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for RHB Bank Berhad that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.