RHB Bank Bhd has established contacts with slightly more than half of its 201,000 vulnerable consumer loan borrowers at the end of the six-month blanket loan moratorium which ended on Sept 30.
Through contacting its 104,000 retail customers, this worked to a cumulative to RM9.7 bil which represented 54% of the total vulnerable retail loans of RM17.9 bil, according to AmBank Research.
“We understand that 97,000 customers (46% of the total vulnerable retail loan borrowers) failed to be contacted,” wrote analyst Kelvin Ong.
“Of the 104,000 retail customers contacted, 82.7% or 86,000 borrowers did not require repayment assistance.”
Meanwhile, 17.3% or 18,000 borrowers indicated their need for further repayment assistance.
Year-to-date, the RHB group has approved the restructuring and rescheduling (R&R) of loans totalling RM7 bil to 56,000 retail borrowers.
“This comprised largely R&R for mortgage loans (RM5.2 bil),” noted Ong.
Thus far, RHB Bank has approved the R&R for 580 business banking customers (BB) (29% of the total vulnerable BB borrowers) which amounted to a cumulative RM2 bil in loan value.
“On a comforting note, the average collateral coverage for BB loans is between 70% and 80%,” said Ong.
Ong had earlier maintained a “buy” call on RHB Bank with an unchanged fair value of RM5.70.
“Except for lowering our dividend pay-out expectation for FY20/21 to 40% from 50%, there are no changes to our earnings estimate,” he added.
As at 4.44pm today, RHB Bank share price was at RM4.33 with a market capitalisation of 17.36 billion. – Oct 15, 2020
