RHB Bank records net profit of RM2.31 bln
KUALA LUMPUR: RHB Bank Bhd (RHB Bank) posted a record net profit of RM2.31 billion, up 18.2 per cent year-on-year (y-o-y) for the financial year ended December 31, 2018 (FY18).
Key contributors included the increase in net fund based income by 8.5 per cent to RM4.94 billion from a year ago.
RHB Bank’s gross fund based income increased by 7.8 per cent on the back of a 5.5 per cent increase in gross loans and financing, whilst funding and interest expense rose 7.3 per cent y-o-y.
The group registered a higher net interest margin (NIM) of 2.24 per cent for the full year compared to 2.18 per cent in 2017 supported by growth in loans and continued prudence in the management of
We are pleased to have delivered a good set of performance in 2018, improving our ROE in excess of 10 per cent. Our fundamentals are strong with high capital ratios, healthy liquidity position and adequate coverage for loan losses. Datuk Khairussaleh Ramli, RHB Banking Group’s group managing director
funding cost.
Another key contributor was the group’s mon-fund based income grew by 1.8 per cent to RM1.86 billion, contributed largely by higher net foreign exchange gain and trading and investment income.
“We are pleased to have delivered a good set of performance in 2018, improving our ROE in excess of 10 per cent. Our fundamentals are strong with high capital ratios, healthy liquidity position and adequate coverage for loan losses.
“We will continue to invest in technology infrastructure and digital capabilities and promote the culture of an AGILE way of working to enhance our competitive edge, improve operational efficiency and serve our customers better.
“In the first year since the launch of our five-year strategy, FIT22, we have gained positive traction. Nevertheless, we remain cautious of the continued challenging global economic environment,” RHB Banking Group’s group managing director Datuk Khairussaleh Ramli said.
Operating expenses increased by 5.4 per cent to RM3.36 billion from a year ago driven by a rise in personnel costs and ITrelated expenses as the group continued to invest in technology infrastructure and Digital capabilities. Nevertheless, costto-income (CIR) ratio improved to 49.3 per cent from 49.9 per cent a year ago.
Allowances for credit losses on loans was RM322.4 million, 22.8 per cent lower y-o-y primarily due to certain recoveries recorded in the current period, coupled with substantial impairment provided for oil and gas related companies in the corresponding period.
Full year credit charge ratio stood at 0.19 per cent compared with 0.26 per cent over the same period last year.
Allowances for credit losses on other financial assets were significantly lower by RM241.8 million mainly due to improved ratings of investment portfolio and the absence of impairment provided on an oil and gas related bond in Singapore last year.
On a quarter y-o-y basis, net profit for the current quarter was at RM565.4 million, 22.9 per cent higher than RM460.1 million recorded in the same quarter ended December 31, 2017. This was due to higher net fund based income and lower allowances for credit losses on loans and other assets.