RHB Bank Q2 profit jumps 43pc
Group nets RM500.96m, expects to deliver better performance this year
RHB Bank Bhd’s second quarter profit ended June this year was 43.06 per cent higher at RM500.96 million from RM350.17 million posted a year ago, mainly due to lower impairment losses and higher funding income.
For the six months, the group’s net profit grew 9.4 per cent to RM1 billion, while revenue eased to RM5.25 billion from RM5.36 billion previously.
Group managing director Datuk Khairussaleh Ramli said the bank expected to deliver a better performance this year and was on track to achieve its longterm objectives.
“As we move into the second half, we see stronger pipeline in the investment banking front and our balance sheet remains strong,” said Khairussaleh.
He said the banking sector was expected to see signs of modest growth, underpinned by moderate rise in lending to household sector and recovery in business loans.
“A rebound in the capital market activities and the return of investors’ interest are expected to contribute to an improved outlook for non-funding income.”
Its net fund-based income, partially offset by lower non-fund based income, increased 3.3 per cent to RM2.24 billion in the quarter from a year ago, due mainly to loan growth and lower interest expense. This has improved net interest margin, rising to 2.19 per cent from 2.17 per cent in the preceding quarter.
Its retail banking remained the biggest contributor to the group although it reported a pre-tax profit of RM545.5 million for the first six months ended June, 4.3 per cent lower from the previous year’s corresponding quarter.
Group business banking recorded a 17.1 per cent drop in pre-tax profit to RM189.9 million in the first six months, mainly due to higher allowances for loans and financing and higher operating expenses.
Group wholesale banking recorded a pre-tax profit of RM874.7 million, an increase of 7.8 per cent, from the previous year’s corresponding period.
Group total assets decreased 1.5 per cent to RM23 billion, as at June, mainly due to lower financial investments in the held-tomaturity portfolio and derivative assets, partially offset by growth in loans and financing.