KUALA LUMPUR – RHB Bank Bhd posted a net profit of RM701.34 million for the second quarter ended June 30, 2021 on higher total income and lower operating expenses, an increase of 75% from the RM400.77 million logged in the same period a year ago.
It is to be noted that last year, the quarter was impacted by a net modification loss.
Revenue stood at RM2.93 billion, down from RM3.26 billion previously.
For the first half of 2021, net profit stood at RM1.35 billion versus RM971.65 million in 2020, while revenue slipped to RM5.83 billion from RM6.47 billion previously, said the bank in a filing with Bursa Malaysia.
“The group’s financial performance for 1H demonstrates our resilience to record growth and the strength of our fundamentals, including our ability to sustain strong capital and liquidity positions despite the challenging operating environment.”
It declared an interim dividend of 15 sen per share, equivalent to a payout ratio of 45.1%. The interim dividend consists of a cash payout of 5.0 sen per share and an electable portion under a dividend reinvestment plan of 10 sen per share.
The bank’s total assets increased by 4.1% to RM282.3 billion as at June 30 from December last year. Net assets per share stood at RM6.86, with shareholders’ equity at RM27.5 billion as at June 30.
“Our capital position remains strong; the group’s Common Equity Tier-1 and total capital ratio stood at 16.8% and 19.3%, respectively.”
The group’s gross loans and financing grew 5.7% on-year to RM191.0 billion, mainly supported by growth in mortgage, auto finance, small and medium enterprises, and Singapore. Domestic loans and financing grew 4.1% in the same period.
The group’s domestic loan market share stood at 9.0% as at end-June.
Gross impaired loans totalled RM3.1 billion as at June 30, with a gross impaired loans ratio of 1.63% compared with RM3.4 billion and 1.87%, respectively, in the same period last year.
The loan loss coverage ratio for the group, excluding regulatory reserves, remained strong at 124.1% as at end-June.
Customer deposits increased 8.1% on-year to RM215.6 billion, predominantly attributed to a current account savings account (Casa) growth of 10.8%, and fixed and money market time deposits of 7.6%.
The Casa composition stood at 29.3% as at June 30.
The liquidity coverage ratio remained healthy at 141.8%.
“The banking sector, overall, is projected to remain resilient, from the liquidity and capital perspective, to support growth and provide relief to affected borrowers. Our expected credit losses provision remains conservative, having done proactive provisioning since last year,” said the bank.
“On the monetary front, the overnight policy rate is expected to remain stable for the rest of the year.” – Bernama, August 27, 2021
