KUALA LUMPUR, RHB Bank Bhd's net interest margin (NIM) for the third quarter of 2024 (3Q2024) is expected to surpass the 1.89 per cent recorded in the second quarter, driven by a recent 10 basis points (bps) reduction in board fixed deposit rates and easing deposit competition, among other factors. AmInvestment Bank Bhd noted that the forecast was also supported by the release of expensive corporate deposits in wholesale banking, the replacement of previously issued securities with lower interest rate funding, the reduction in multi-currency deposit rates, and the push for current account savings accounts under MySiswa initiatives. 'On operating expenses, personnel costs are likely to trend lower in the near term due to a drop in headcount from attritions. The group aims to maintain its first-half 2024 cost-to-income ratio of 46.3 per cent in the second half,' AmInvestment said in a note today. It added that RHB Bank's credit cost in the third quarter is expected to be lower than the 26bps reported in the second quarter, driven by tighter credit underwriting and improved recoveries for small and medium enterprise loans. 'We maintain a 'hold' stance on RHB Bank with a revised fair value of RM6.50 per share from RM6.40 per share,' it added. Source: BERNAMA News Agency