PETALING JAYA: RCE Capital Bhd’s (RCE Cap) net profit for its third quarter ended Dec 31,2020, rose to RM34.76mil from RM30.98mil in the previous corresponding period.
The improved results were mainly led by higher early settlement income and lower allowances for impairment loss on receivables, which was offset by employees’ share scheme expenses incurred.
Revenue in the third quarter grew to RM77.86mil compared with RM72.50mil a year earlier, the non-bank financial institution said in a filing with Bursa Malaysia.
“This was primarily contributed by higher early settlement income arising from higher refinancing activities by customers, ” it said.
For the nine-month period ending Dec 31,2020, RCE Cap’s net profit increased to RM90.57mil from RM82.26mil in the previous corresponding period, while revenue rose to RM218.50mil from RM209.62mil a year earlier.
RCE Cap attributed the improved revenue to higher early settlement income.
On its prospects ahead, RCE Cap said the group’s core business remains operational with ongoing sales campaigns, active management of costs and close monitoring on collections, despite the recommencement of the movement control order since Jan 13,2021.
“Due to the increasing number of Covid-19 cases, employee safety remains a priority with strict adherence to standard operating procedures, along with a significant portion of our workforce working from home.
“Following the initiatives undertaken by the group and barring any unforeseen circumstances, the financial year ending March 31,2021 will be profitable, ” it said.
Maybank Investment Bank Research (Maybank IB) in a recent report said it expects RCE Cap to be eligible for syariah status in November 2021 that will potentially attract interest from more fund managers, which, coupled with a relative resilient earnings outlook, will attract interest from more fund managers.