RCE earnings up on early settlement income

RCE Capital provides consumer financing and also payroll collection services.

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.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Strong economic fundamentals, prudent management to contribute to stronger ringgit
Matrix Concepts announces preview of latest Melbourne project
Poor skinny kid from Malaysia makes it really big
Brent could push past US$150/bbl if Russian oil exports shrink, BofA says
Indonesia to allocate about 1 million tonnes of palm oil for export
UK equities record best week since mid-March
Oil settles up ahead of US driving season
World stock markets rally, treasury yields fall on inflation data
Wall St Week Ahead-Stock rally fanned by hopes of Fed 'past peak hawkishness'
Embracing sustainability

Others Also Read