Higher interest boosts RCE Capital profits

PETALING JAYA: Higher interest and fee income is helping to boost profits at RCE Capital Bhd, with the company expected to better its previous financial year performance amid steady demand for personal loans.

Increased contribution from its consumer financing lifted the group’s net profit in the third quarter ended Dec 31, 2017 by 5.2% to RM22.9mil compared with the RM21.8mil made a year earlier.

“The stronger bottom line was mainly underpinned by the higher interest and fee income from our consumer financing segment,” it said.

Revenue-wise, the company registered a significant growth of 10.37% year-on-year (y-o-y) to RM64mil. A year earlier, its revenue stood at RM57.98mil.

RCE Capital is controlled by prominent banker Tan Sri Azman Hashim, who owns a 58.6% stake via Amcorp Group.

Cumulatively, in the first nine months of financial year 2018, the financial services firm recorded a 13.79% growth in net profit to RM65.66mil, given the stronger consumer financing segment.

Its revenue rose by nearly 10% y-o-y to RM182.66mil, as compared to RM166.08mil in the previous corresponding period.

Moving forward, RCE Capital said it expected its profitability for the current financial year of 2018 to be better y-o-y, mainly as a result of the demand in the consumer financing segment, as well as the group’s efforts in leveraging on its key business strengths.