KUALA LUMPUR: RHB Capital Bhd (RHB Cap) chalked up a pre-tax profit of RM2.74 billion for the financial year ended Dec 31, 2014, versus RM2.47 billion recorded in 2013, on the back of a higher total income growth.
It also recorded a higher impairment write back of other assets and lower loan impairment charges.
Revenue jumped to RM10.42 billion, during the period under review, from RM9.58 billion previously, the company said in a filing to Bursa Malaysia today.
RHB Capital also saw a strong loan growth of 17 per cent to RM142.5 billion last year, which was broad based, predominantly from purchase of residential and non-residential properties, working capital and purchase of securities.
The group continued to gain traction in the domestic loans segment as domestic loans growth of 14.1 per cent continued to outpace the industry of 8.7 per cent.
Domestic loans market share increased to 9.7 per cent from 9.3 per cent as of Dec 31, 2013.
RHB Cap said total assets expanded 14.8 per cent to RM219.4 billion as at Dec 31, 2014, mainly due to growth in net loans and financing.
As for its subsidiaries, RHB Islamic Bank Bhd and RHB Investment Bank Bhd saw an improvement in their respective pre-tax profits while that of RHB Bank Bhd declined.
RHB Bank’s pre-tax profit slipped to RM2.02 billion in 2014 from RM2.04 billion in the previous year.
The decline was mainly due to higher other operating expenses, partially offset by lower allowance for impairment on loans and financing, higher net interest income and higher impairment written back on other assets.
RHB Islamic Bank’s pre-tax profit improved 39.1 per cent to RM303.7 million last year on the back of higher net financing income due to strong financing growth, higher non-funding income and lower allowances for impairment on financing and advances.
“Islamic banking income grew at a strong pace of 23.9 per cent to RM732.2 million mainly attributable to higher net funding income on the back of a 36.2 per cent increase in financing base to RM25.5 billion from 2013,” it said.
RHB Investment Bank’s pre-tax profit jumped 86.4 per cent to RM345.9 million during 2014, while total asset under management for RHB Asset Management Sdn Bhd increased 23.7 per cent to RM48.5 billion as at Dec 31, 2014.
Going forward, RHB Cap believed its 2015 financial year performance would be better than 2014 with the focus on quality assets and earnings growth.
It expects the capital market to pick up in the second half of the year with recovery and stabilisation in oil prices and currency market.
The firm has declared an interim single-tier dividend of six sen amounting to RM154.3 million. -- BERNAMA