RHBCap 1Q profit falls, partly on delinquent account impairment

Business & Markets 2013
Written by theedgemalaysia.com
Wednesday, 29 May 2013 18:03
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Flash: RHBCap 1Q profit falls 18% y-o-y to RM357.19m

RHBCap 1Q profit falls, partly on delinquent account
impairment

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 29 May 2013 18:35
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KUALA LUMPUR (May 29): RHB CAPITAL BHD [] (RHBCap) incurred a
one-off delinquent account impairment as well as higher collective
allowance due partially to loan growth, which resulted in its first
quarter's net profit decline by 18% year-on-year.
In a filing with Bursa Malaysia, the financial services group reported net
profit for the quarter ended March 31, 2013 (1QFY13) at RM357.19
million against RM435.55 million a year earlier.
However, RHBCap’s revenue climbed by 19% to RM2.27 billion in the
quarter under review. In the previous corresponding quarter, its revenue
stood at RM1.9 billion.
“(The year-on-year revenue increase was) driven by the full
consolidation of OSK Investment Bank Bhd and top line gains in net
interest income and income from Islamic banking business,” the group
explained in a statement.
RHBCap also said in the statement that its net interest income rose
9.9% to RM778.9 million. The rise reflected the effect of consolidation
of OSK Investment Bank and higher average lending and deposit
balances on a business-as-usual basis.
Net interest margin remained relatively stable at 2.34%.
On its prospects, RHBCap group managing director Kellee Kam said:
“We remained focus to drive our targeted business segments and regions to becoming a leading multinational financial
services group. Barring any unforeseen circumstances, the group expects satisfactory results for the financial year 2013.”