KUALA LUMPUR: RHB Bank Bhd’s (RHB) net profit for the second quarter ended June 31, 2019 (Q2 2019), rose 7.9 percent to RM615.41 million from RM570.26 million recorded in the same period last year. Revenue increased to RM3.42 billion from RM3.05 billion previously. For the first half of this year, the group’s net profit increased 7.3 percent year-on-year (y-o-y) to RM1.25 billion, while revenue rose to RM6.77 billion from RM6.18 billion a year ago.
In a filing with Bursa Malaysia yesterday, RHB attributed the higher net profit to higher nonfund based income and lower expected credit losses on loans. It said gross fund based income grew 7.4 percent y-o-y on the back of a 6.9 percent increase in gross loans and financing, though marginally negated by the impact from the overnight policy rate (OPR) cut in May 2019.
“Funding and interest expense rose 16.4 percent y-o-y due to the impact from the OPR hike in January 2018, coupled with higher deposit base. As a result, net fund based income declined by 2.6 percent.
“Meanwhile, non-fund based income improved significantly by 21.8 percent y-o-y to RM1.10 billion, contributed largely by higher net trading and investment income, insurance underwriting surplus and higher capital market related fee income,” the bank said. Operating expenses also rose by 2.7 percent y-o-y to RM1.70 billion from higher personnel cost, IT-related expenses and marketing expenses, it said.
“The encouraging results are a testament to our ability to maintain a positive growth momentum even during challenging times. “With the continued global economic volatility, we remain cautious, placing emphasis on growing assets responsibly, exercising prudence in business and strengthening our fundamentals,” it added. – Bernama
