RHB re­tail busi­ness drives RM500m net profit in Q1

New Straits Times - - Business -

KUALA LUMPUR: RHB Bank Bhd has re­ported a net profit of RM500.3 mil­lion in the first quar­ter ended March 31, mainly driven by its re­tail busi­ness.

RHB Bank­ing Group man­ag­ing di­rec­tor Datuk Khairus­saleh Ramli said the bank ex­pected bet­ter per­for­mance this year com­pared with last year, even as it re­mained vig­i­lant to head­winds in the op­er­at­ing en­vi­ron­ment.

“The group has moved on from a chal­leng­ing fourth quar­ter last year and de­liv­ered much im­proved prof­itabil­ity in the cur­rent pe­riod.

“Our small and medium en­ter­prises (SME) and Is­lamic bank­ing port­fo­lios have main­tained their strong per­for­mances in the first quar­ter of the year, while our cur­rent ac­count-sav­ings ac­count com­po­si­tion con­tin­ues to strengthen.

“The group will con­tinue to pur­sue se­lec­tive growth while man­ag­ing as­set qual­ity and en­hanc­ing pro­duc­tiv­ity,” he said in a state­ment.

The group re­ported a net profit of RM261.2 mil­lion in the fourth quar­ter of last year.

Ac­cord­ing to the state­ment, Malaysia’s bank­ing sec­tor loan growth is ex­pected to range be­tween 5.5 and six per cent, with lend­ing to busi­nesses be­ing the key growth driver.

House­hold loan growth is ex­pected to be mod­er­ate.

RHB Bank’s re­tail bank­ing re­mained the big­gest con­trib­u­tor to the group de­spite hav­ing reg­is­tered 12.6 per cent lower pre-tax profit of RM257.5 mil­lion for the quar­ter, com­pared with the cor­re­spond­ing pe­riod last year.

The bank said this was mainly at­trib­uted to lower net fund based in­come, par­tially off­set by lower op­er­at­ing ex­penses.

Its re­tail loans and fi­nanc­ing were marginally higher at RM70.5 bil­lion as at March, but the growth in mort­gages was largely off­set by the de­crease in auto fi­nanc­ing and loans for pur­chase of se­cu­ri­ties.

Khairus­saleh said in the first quar­ter, it had em­barked on a dig­i­tal trans­for­ma­tion jour­ney aimed at digi­tis­ing pro­cesses and de­liv­er­ing a sim­ple, fast and seam­less ex­pe­ri­ence to its cus­tomers.

“As part of our fi­nan­cial tech­nol­ogy (fin­tech) agenda, we part­nered with Fund­ing So­ci­eties to ex­pand fund­ing op­por­tu­ni­ties for the un­der-served SME seg­ment in line with our strat­egy to col­lab­o­rate with fin­tech play­ers in rel­e­vant spa­ces,” he said.

RHB Bank Bhd

ex­pects bet­ter per­fo­mance this year com­pared with last year.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.