KUALA LUMPUR: RHB Bank’s net profit in the first half ended June 30, 2021 was at RM1.35bil from RM971.65mil a year ago demonstrating its resilience to record growth and the strength of its fundamentals.
The banking group announced on Friday that excluding net modification loss impact, net profit grew by 5.5% mainly due to higher net fund based income.
Its revenue was lower at RM5.83bil compared with RM6.47bil in the previous corresponding period.
As for the second quarter, its net profit rose by 75% to RM701.34mil from RM400.77mil a year ago.
“Excluding net modification loss impact incurred in the previous year, the group’s net profit for 2Q declined marginally,” it said. Its revenue declined to RM2.92bil from RM3.25bil.
Group managing director of RHB Banking group, Datuk Khairussaleh Ramli said the group’s financial performance for 1H “demonstrates our resilience to record growth and the strength of our fundamentals, including our ability to sustain strong capital and liquidity positions despite the challenging operating environment”.
RHB Bank declared a dividend of 15 sen a share, equivalent to a payout ratio of 45.1% for the second quarter.
The interim dividend consists of cash payout of five sen per share, and an electable portion under dividend reinvestment plan of 10 sen per share.
In 1H, net fund based income improved to RM2.84bil driven by proactive funding cost management, which dropped 33.2% year-on-year supported by current account and savings account (CASA) growth of 10.8%.
Net interest margin for the quarter was 2.15% compared with 2.05% recorded in the corresponding period last year.
As for its non-fund based income, it declined to RM1.11bil, primarily from lower net trading and investment income which offset fee income growth from capital market, brokerage, wealth management and commercial banking.
RHB Bank said the group’s total assets increased by 4.1% from December 2020 to RM282.3bil as at June 30.
It said its capital position remains strong; the group’s common equity Tier-1 (CET-1) and total capital ratio stood at 16.8% and 19.3% respectively.
The group’s gross loans and financing grew by 5.7% year-on-year to RM191bil, mainly supported by growth in mortgage, auto finance, SME and Singapore.
Domestic loans and financing grew 4.1% year-on-year. The group’s domestic loan market share stood at 9.0% as at end-June 2021.
Gross impaired loans was RM3.1bil as at June 30, with a gross impaired loans ratio of 1.63% compared with RM3.4bil and 1.87% respectively as at June 30, 2020.
Loan loss coverage ratio for the group, excluding regulatory reserves, remained strong at 124.1% as at end-June 2021.
Khairussaleh said RHB Bank continues to support and facilitate its customers, both individuals and businesses, who are impacted by the various challenges brought about by the prolonged Covid-19 pandemic.
"In July this year, we have rolled out the PemulihRepayment/Payment Assistance programme for all segments of customers covering all individual customers, as well as microenterprises and SMEs who are in need of payment assistance.
"As at early August 2021, total repayment assistance approved is RM47bil, equivalent to 28% of our group domestic loans and financing, benefiting more than 294,000 customers," he said.