KUALA LUMPUR: RHB Bank Bhd’s net profit for the third quarter ended Sept 30, 2022 (Q3’22) rose to RM700.48 million from RM635.59 million in the same quarter last year.
Revenue increased to RM3.48 billion from RM3.03 billion previously.
However, for the first nine months of this year, net profit eased to RM1.94 billion from RM1.99 billion previously.
Meanwhile, revenue advanced to RM9.33 billion from RM8.86 billion in the same period last year.
In a statement on Nov 29, RHB said the higher Q3’22 net profit was mainly due to higher net fund-based income, absence of modification loss (ML) and lower expected credit losses (ECL).
The bank said its net fund-based income improved to RM4.66 billion driven by higher gross fund-based income, which grew 11.6% year-on-year supported by loans growth of 7.8% with net interest margin (NIM) for the quarter at 2.27% from 2.23% recorded in the corresponding period last year.
It noted, however, that the non-fund-based income declined to RM1.38 billion, primarily from overall lower fee income, insurance underwriting surplus and net trading and investment income.
It also said that the ECL was reduced to RM384.8 million from lower ECL on loans and higher bad debts recovered.
Correspondingly, the annualised credit charge ratio improved to 0.24% compared with 0.45% for the same period last year.
RHB also highlighted that the group’s total assets increased 5.8% from December 2021 to RM306.4 billion as at Sept 30, 2022, and the capital position remained strong with the group’s Common Equity Tier-1 (CET-1) and total capital ratio stood at 16.4% and 18.8% respectively.
The group’s gross loans and financing grew 5.7% year-to-date to RM209.7 billion, mainly supported by growth in the mortgage, auto finance, small and medium enterprises (SME), commercial, Singapore and Cambodia, while domestic loans and financing grew 4.3% year-to-date, it shared.
Gross impaired loans stood at RM3.3 billion as of September 2022 with gross impaired loans ratio of 1.57%, compared with RM3.3 billion and 1.62% respectively as of June 2022, and RM3 billion and 1.49% respectively as of December 2021.
Customer deposits increased 3.1% year-to-date to RM225.6 billion with growth in fixed and money market time deposits, and current accounts and saving accounts (CASA) of 3.1% and 3% respectively, RHB said.
“The group remained resilient and continued to deliver commendable performance for the nine months ended September 2022 despite the challenging business environment. Our fundamentals remain strong, and we will continue to monitor our asset quality closely.
“We are also mindful that some of our customers are still recovering from the impact of the Covid-19 pandemic and as such, will continue providing the necessary support and assistance, especially to the most vulnerable groups within the community,” said group managing director and group chief executive officer, Mohd Rashid Mohamad.
Going forward, the group’s Together We Progress (TWP24) strategy will continue to guide the bank towards achieving quality growth and driving service excellence across all the delivery channels, supported by its robust digital propositions, he added. - Bernama