KUALA LUMPUR: RHB Bank Bhd posted its best quarterly result ever, with net profit rising 18.1 per cent to RM590.8 million in the first quarter ended March 31 2018.
The improved performance was largely driven by higher net fund based and non-fund based income as well as lower allowance for expected credit losses, the group said.
Group revenue for the quarter rose to RM2.7 billion from RM2.62 billion, while net fund based income increased 13 per cent to RM1.23 billion.
RHB Group managing director Datuk Khairussaleh Ramli said it expects to achieve better performance this year.
“The group continued its earnings growth momentum which is reflected in our improved performance even under challenging operating environment. The RM590.8 million profit recorded in the first quarter of 2018 is our best quarterly profit ever,” Khairussaleh said in a statement today.
He added that the group had targeted to grow its topline, especially from the key growth areas.
This is on the back of improvements in fundamentals with its loan loss coverage exceeding 100 per cent, robust capital levels, healthy liquidity position and normalisation of credit cost.
“We have established a clear vision of our place in the financial services industry, as articulated through our five-year strategic plan FIT22, aimed at boosting performance, building scale and delivering service excellence,” he said.
The group’s total assets increased 1.9 per cent from December 2017 to RM234.6 billion as at 31 March 2018.
Post implementation of MFRS9 (Financial Instruments), shareholders’ equity stood at RM22.4 billion, with net assets per share at RM5.57 from RM5.77 in December 2017.
As at 31 March this year, its common equity tier-1 (“CET-1”) and total capital ratio after the proposed final dividend remained strong even after the implementation of MFRS 9 at 13.5 per cent and 16.7 per cent respectively. These ratios are well above the Basel III minimum transitional arrangement requirements of 6.375 per cent and 9.875 per cent respectively.
The group’s gross loans and financing grew 4.3 per cent to RM161.2 billion. Domestic loans and financing grew 6.7 per cent contributed mainly by growth in mortgages and SME.
Its domestic loan market share remained at 9.1 per cent as at end March 2018.