RHBCap quarterly earnings edge up 35pc to RM556m

KUALA LUMPUR: RHB Capital Bhd (RHBCap) reported RM556.5 million net profit in its second quarter ended June 30 2014, up about 35 per cent from RM410.3 million in the previous corresponding period.

This was achieved on the back of RM2.45 billion revenue, up 4.7 per cent per cent from RM2.35 billion previously.

This brings the net profit for the first half of its financial year to RM1 billion, an increase of 31.2 per cent year-on-year, which RHBCap attributed to healthy total income growth, higher write-back of impairment on other assets and significant improvement in the loans impairment charges.

During the six-month period, the group registered total income of RM2.9 billion, representing a rise of 4.1 per cent from the previous corresponding period.

This was mainly attributed to strong double-digit growth in Islamic banking income and higher net interest income.

In a statement, RHBCap said net interest income rose 4.3 per cent year-on-year to RM1.6 billion on the back of an 11.8 per cent increase in conventional gross loans.

It said net interest margin in the second quarter was lower at 2.29 per cent, compared with 2.33 per cent in the previous quarter.

Total assets stood at RM205.5 billion as at June 30 2014. Shareholders’ equity strengthened with a 6.1 per cent growth to RM17.8 billion, while net assets per share improved to RM6.97 against RM6.57 as at December 31 2013.

During the six-month period, the group recorded strong loans growth of 8.8 per cent to RM132.5 billion.

As at June 30 2014, domestic loans market share rose to 9.7 per cent, from 9.3 per cent as at December 31 2013.

The group’s liquidity and funding position remained healthy, with loans-to-deposits ratio standing largely unchanged at 88.6 per cent.

Customer deposits expanded at 8.6 per cent to RM149.6 billion. Current account and savings account composition was at 23.3 per cent as at end-June.

Subsidiary RHB Bank Bhd’s balance sheet remained strong, with total assets at RM160.9 billion as at June 30 2014.

RHB Banking Group managing director Kellee Kam said the group expects this year’s performance to be better than last year’s.

“The group has successfully launched several initiatives under the IGNITE 2017 transformation programme this year. This provides a strong foundation for the programme, which aims to grow RHB Banking Group into a leading multinational financial services group by 2020,” he said in a statement.