RHB Bank second quarter net profit rises to RM615.41 mln
KUALA LUMPUR: RHB Bank Bhd’s (RHB Bank) net profit for the second quarter ended June 31, 2019 (2Q19), rose 7.9 per cent to RM615.41 million from RM570.26 million recorded in the same period last year.
Revenue increased to RM3.42 billion from RM3.05 billion previously.
For the first half of this year, the group’s net profit increased 7.3 per cent year-on-year (yo-y) to RM1.25 billion, while revenue rose to RM6.77 billion from RM6.18 billion a year ago.
In a filing with Bursa Malaysia yesterday, RHB attributed the higher net profit to higher non-fund based income and lower expected credit losses on loans.
It said gross fund based income grew 7.4 per cent y-oy on the back of a 6.9 per cent increase in gross loans and financing, though marginally negated by the impact from the overnight policy rate (OPR) cut in May 2019.
“Funding and interest expense rose 16.4 per cent yo-y due to the impact from the OPR hike in January 2018, coupled with higher deposit base. As a result, net fund based income declined by 2.6 per cent.
“Meanwhile, non-fund based income improved significantly by 21.8 per cent y-o-y to RM1.10 billion, contributed largely by higher net trading and investment income, insurance underwriting surplus and higher capital market related fee income,” the bank said.
Operating expenses also rose by 2.7 per cent y-o-y to RM1.70 billion from higher personnel cost, IT-related expenses and marketing expenses, it said.
“The encouraging results are a testament to our ability to maintain a positive growth momentum even during challenging times.
“With the continued global economic volatility, we remain cautious, placing emphasis on growing assets responsibly, exercising prudence in business and strengthening our fundamentals,” it added. — Bernama THE rubber market settled mostly higher yesterday supported by the softer ringgit against the US dollar, said a dealer.
The dealer said the market tone, however, remained cautious due to the escalating USChina trade war over the weekend which continued to add uncertainty to the global economic outlook.
At 5 pm, the ringgit stood at 4.2010/2050 against the greenback. He said last Friday, US President Donald Trump in a tit-for-tat measure announced a five per cent additional duty on US$ 550 billion of targeted Chinese goods, soon after China unveiled retaliatory tariffs on US$ 75 billion worth of US products.
Funding and interest expense rose 16.4 per cent y-o-y due to the impact from the OPR hike in January 2018, coupled with higher deposit base. As a result, net fund based income declined by 2.6 per cent.
RHB Bank
THE Kuala Lumpur Tin Market (KLTM) yesterday closed unchanged at US$15,850 a tonne from last Friday due to lack of fresh leads.
A dealer said the metal’s closing price on the London Metal Exchange (LME) last Friday was US$176 lower at US$15,974 a tonne.
“The quiet market in KLTM is also tracking the price level in the LME, which is about the same range.
“In addition, the LMEselect market, which is the electronic trading system, is closed today following the Summer Bank Holiday,” he told Bernama.
On the KLTM, bidders stood at 16 tonnes while sellers were at 20 tonnes.