RHB Bank earnings up 18%
Better results driven by improved non-fund-based income
PETALING JAYA: RHB Bank Bhd’s net profit for the third quarter ended Sept 30 came in 18% higher year-on-year (y-o-y) to RM578.69mil, driven by improved non-fundbased income and lower allowances for credit losses on loans.
Revenue rose by a slower pace of 8.3% to RM3.20bil from RM2.95bil in the same period a year ago.
Earnings per share was at 14.4 sen compared with 12.2 sen previously.
For the cumulative nine-month period, it posted a record net profit of RM1.74bil, up 16.8% y-o-y, the bank said in a filing with Bursa Malaysia.
Revenue for the nine-month period was higher at RM9.38bil as compared to RM8.79bil a year ago.
RHB Bank group managing director Datuk Khairussaleh Ramli said the group’s performance exhibited resilience despite challenging market conditions and volatility in the global economy.
“Our robust capital levels, healthy liquidity position and adequate cov- erage for loan losses set us out for sustainable growth.
“Our profit for the first nine months this year is our highest ever,” he said in a statement.
Net fund-based income increased 8.9% to RM3.7bil from a year ago.
Gross fund-based income was up 7.1% on the back of a 4% increase in gross loans and financing, while funding and interest expense rose 5.6% on-year.
Operating expenses, meanwhile, rose 6.4% to RM2.5bil from a year ago.
The cost-to-income ratio, howev- er, improved to 49.0% from 49.5% .
The bank said allowances for credit losses on loans were at RM245.7mil, 18.8% lower than a year ago.
This was primarily due to certain recoveries recorded in the current period, coupled with substantial impairment provided for oil and gas-related companies a year ago.
The bank said its common equity tier-1 or CET-1 and total capital ratio after the financial year 2018 interim dividend were robust at 14.8% and 18.0%, respectively, which were among the highest in the industry.
Going forward, Khairussaleh said the banking group aimed to boost performance and enhance topline growth through its FIT22 five-year strategy.
This would be supported by its digital transformation programme, focusing on providing value-added interactions and customised services based on differentiated segments.
Shares in RHB Bank rose six sen to close at RM5.25 yesterday.