KUALA LUMPUR (Aug 27): RHB Bank's 1H results were strong but could be harder to maintain going forward, TA Securities says cutting its target price on Malaysia's fourth largest lender to RM6.40 from RM6.50, while maintaining a buy rating.

Downside risks to RHB's earnings have deepened on likelihood of another overnight policy rate cut and possible asset quality weakness, the brokerage says. 

RHB's loan growth could also fall short of target due to weakened consumer and business confidence. However on the upside, earnings potential from overseas operations, ongoing efforts to manage overhead expenses and benefits from May's OPR cut being reflected in funding costs towards 4Q could make the lender's growth broad-based, TA says. RHB last closed at RM5.62.