RHB STAYS ‘CAUTIOUSLY OPTIMISTIC’
Bank nets RM2.31b for fiscal year 2018 and announces 36pc dividend payout ratio, the highest since 2003
RHB Bank Bhd is “cautiously optimistic”of improved financial results this year after posting its highest net profit yesterday.
The bank reported a net profit of RM2.31 billion for the financial year 2018 (FY18).
It also raised dividend payout ratio to 36 per cent from 20 to 30 per cent previously. The payout ratio is the bank’s highest since 2003.
“We are comfortable with the enhanced dividend policy due to the improving financial results and strong capital position.
“Common equity Tier-1 and total capital ratio of the group after the final dividend for FY18 are among the highest in the industry, at 15.49 and 18.78 per cent, respectively,” said group managing director Datuk Khairussaleh Ramli.
“We are cautiously optimistic that we can still grow our profit this year but this depends on many parameters, including topline growth and provisions.”
Khairussaleh expects loan growth of five per cent this year, slightly below the industry’s growth forecast of 5.5 per cent.
The 18.2 per cent year-on-year growth in the net profit was achieved on the back of higher revenue of RM12.69 billion than the RM11.87 billion previously.
RHB’s net profit for the fourth quarter was at RM565.4 million, 22.9 per cent higher than RM460.1 million a year ago. This was due to a higher net fundbased income and lower allowances for credit losses on loans and other assets.
The group’s total assets increased 5.6 per cent year-on-year to RM243.2 billion, while shareholders’ equity stood at RM23.4 billion, with net assets per share at RM5.82.
Its gross loans and financing grew 5.5 per cent year-on-year to RM168.9 billion, while domestic loans and financing grew 5.6 per cent on resilient growth in mortgages and small and medium enterprise segments.
RHB’s domestic loan market share stood at 9.1 per cent as at end-December last year.
Its customer deposits rose 7.2 per cent to RM178.9 billion with a healthy liquidity coverage ratio of 143.0 per cent. Its total current and savings account composition stood at 25.9 per cent of total deposits.
Group gross impaired loans ratio improved to 2.06 per cent from 2.23 per cent a year ago with gross impaired loans at RM3.48 billion.