RCE’s Q3 earnings up, thanks to consumer financing

PETALING JAYA: RCE Capital Bhd’s net profit for the third quarter ended Dec 31, 2017 rose 5.2% to RM22.92 million from RM21.77 million a year ago mainly underpinned by higher interest and fee income from its consumer financing segment.

The group posted a higher revenue of RM64 million in the quarter, representing an improvement of 10.4% as compared to RM57.98 million in the corresponding quarter, primarily contributed by higher interest and fee income buoyed by its consumer financing segment’s expanded loan base.

For the nine month period, its net profit jumped 13.8% to RM65.66 million from RM57.7 million a year ago, while revenue also increased by 10% to RM182.66 million compared with RM166.08 million in the previous year’s corresponding period.

On prospects, RCE said loans portfolio quality remains a priority as the group periodically assess its products and credit scoring model to remain competitive and relevant in a dynamic market environment. This complements the riskbased pricing approach, which facilitates its efforts in managing expected yield and return to the group.

Meanwhile, the group endeavours to sustain its growth by on-going process simplification and technological enhancement initiatives to promote operational efficiencies.

“The profitability for financial year ending March 31, 2018 is expected to be better than the year before on account of the demand in the consumer financing segment as well as the group’s efforts in leveraging on its key business strengths.”

In addition, the group continues to place emphasis in motivating and monitoring the performance of its distribution channels, while it expects modest growth in its consumer financing segment following the adoption of a vigilant stance in the present competitive and dynamic market environment.

RCE closed up 2.8% to RM1.47 yesterday with shares 104,700 changed hands.