Improved earnings for RHB Bank in third quarter

Group’s liquidity and capital position remain solid

PETALING JAYA: Malaysia’s fourth largest lender by asset size, RHB Bank Bhd, posted a higher net profit of Rm622.25mil in the third quarter ended Sept 30, 2020 compared with Rm615.83mil the same period a year ago.

However, for the nine-month period, the group recorded a net profit of Rm1.59bil, a drop of 14.4% from the corresponding period last year.

This was mainly due to net modification loss of Rm392.4mil arising from the moratorium given to customers and higher allowances for credit losses.

Higher net fund-based income and non-fund-based income helped to mitigate the profit reduction.

Revenue for the third quarter stood at Rm3.01bil against Rm3.34bil previously. The group’s nine-month revenue was at Rm9.51bil compared with Rm10.10bil a year ago.

Earnings per share for the quarter under review rose to 15.52 sen compared with 15.36 sen previously.

RHB did not declare any dividend for the quarter.

In a filing with Bursa Malaysia, the group said total assets increased by 2.1% from December 2019 to Rm263bil as at September 30, 2020, primarily due to an increase in loans, advances and financing and securities portfolios.

Net assets per share was at RM6.81, with shareholders’ equity at Rm27.3bil as at Sept 30.

The group’s Common Equity Tier1 and total capital ratio stood at 16.42% and 18.25%, respectively.

Gross impaired loans were at Rm3.1bil as at Sept 30, with a gross impaired loans ratio of 1.69% compared with Rm3.5bil and 1.97% as at Dec 31, 2019.

Loan loss coverage ratio, excluding regulatory reserves, stood at 108.3% as at end-september 2020.

The group’s domestic loan market share stood at 9% as at end-september 2020.

RHB Banking Group group managing director Datuk Khairussaleh Ramli said: “Despite the recent resurgence in Covid-19 cases, there seems to be early indicators pointing to global economic recovery but the trajectory remains highly uncertain at this juncture.

“The group, therefore, remains vigilant and continues to navigate carefully through the impacts of the pandemic and bolster our provisions to tide through uncertainties ahead.

“While our liquidity and capital position remain solid, it is important that we continue to strengthen these areas. We remain committed in providing targeted repayment assistance to our customers in weathering the effects of economic challenges brought about by the pandemic,” he said.

“We remain committed in providing targeted repayment assistance to our customers in weathering the effects of economic challenges brought about by the pandemic.” Datuk Khairussaleh Ramli