KUALA LUMPUR – RHB Bank Bhd has posted a higher net profit of RM650.39 million in the first quarter ended March 31, 2021 (Q1 2021), up 13.9% from the same period last year, mainly due to higher net fund-based and non-fund-based income.
The year-on-year (y-o-y) earnings improvement were mainly due to higher net funding income and higher non-funding income, partially offset by higher allowances for credit losses, higher operating expenses and net modification loss for the period, the bank said in a filing with the exchange.
Revenue, however, slipped to RM2.91 billion versus RM3.21 billion previously while basic earnings per share rose to 16.22 sen from 14.24 sen before.
In a statement, group managing director Datuk Khairussaleh Ramli said RHB’s net fund-based income increased by 12.6% y-o-y to RM1.42 billion, driven by proactive funding cost management which dropped 36.4%, supported by current and saving account (CASA) ratio growth of 25.6%.
Net interest margin for the quarter was 2.17% compared with 2.11% recorded in the corresponding period last year.
The bank also said that its balance sheet and capital position remained robust.
“The group’s gross loans and financing grew by 6.8% y-o-y to RM188.2 billion, mainly supported by growth in mortgage, auto finance, SME and Singapore. Domestic loans and financing grew 6.0% y-o-y while the domestic loan market share stood at 9.0% as of end-March 2021,” he said.
The bank's gross impaired loans were at RM3.1 billion as at March 31, 2021, with a gross impaired loans ratio of 1.66% compared with RM3.5 billion and 2.00% respectively as at March 31, 2020.
Meanwhile, loan loss coverage ratio for the group, excluding regulatory reserves, remained strong at 119.5% as at end-March 2021.
Customer deposits increased by 12.4% y-o-y to RM218.0 billion, predominantly attributed to CASA and fixed deposits growth of 25.6% and 9.0% respectively. CASA composition stood at 30.6% as at March 31, 2021.
“Malaysia’s economy is expected to recover this year, the rate of which depends largely on the pandemic containment measures that are in place and the pace of the national vaccination programme. The banking sector is projected to remain resilient, with stable overnight policy rate (OPR) for the rest of the year.
“We expect our performance in FY2021 to be better than FY2020 despite the ongoing headwinds.
“Given the continued economic uncertainties brought about by the recent surge in positive Covid-19 cases, we continue to exercise vigilance and prudence, maintaining our focus on upholding our strong fundamentals by preserving capital and liquidity strength, and closely monitoring asset quality by intensifying our recovery and collection efforts,” he said.
RHB Bank, he added, has been engaging with its customers and would continue to provide assistance where necessary to see them through this challenging period.
As at March 31, 2021, total repayment assistance approved amounted to RM25.5 billion, equivalent to 15.3% of group domestic loans and financing, benefitting 182,742 customers, both individuals and businesses.
“With several repayment assistance programmes made available, customers can come forward and get in touch with us through our various channels,” he added. – Bernama, May 27, 2021
