Even prior to the tariff challenges and the US-China trade war, some analysts had deemed RHB’s 12% ROE goal a stretch.
Mere weeks after RHB Bank unveiled its new three-year corporate strategy to the market in late February — under which it ultimately seeks to achieve a return on equity (ROE) of 12% by the end of 2027 from 10.04% last year — came the unforeseen complication of tariffs.
The US’ higher-than-expected tariffs on Malaysia (at 24%) and many other countries — paused for 90 days since April 9 to accommodate negotiation talks — threaten to slow down economic growth, raising questions as to whether this could derail the bank’s plans and targets under its so-called “PROGRESS27” (P27) strategy.
