Uptick in economic activity a boost for RCE Capital


RCE Capital’s net profit declined to RM32.23mil in the first quarter ended June 30, 2022, from RM35.39mil in the same period a year ago.Revenue fell to RM77.66mil compared with RM78.04mil previously.

PETALING JAYA: RCE Capital Bhd expects a positive momentum in its business going forward, mainly from the increased economic activities and growth prospects.

In a filing with Bursa Malaysia yesterday, the financing company said it will remain vigilant in view of more interest rate hikes anticipated ahead.

“This includes sourcing of competitive financing facilities, maintaining prudence in credit risk management and digital initiatives acceleration to ensure sustainable value creation for all stakeholders.

“Following this, the group is expected to remain profitable for the financial year ending March 31, 2023,” it said.

RCE Capital’s net profit declined to RM32.23mil in the first quarter ended June 30, 2022, from RM35.39mil in the same period a year ago.

Revenue fell to RM77.66mil compared with RM78.04mil previously.

Basic earnings per share stood at 4.40 sen, compared with 4.97 sen previously.

Meanwhile, in a letter to shareholders in the group’s latest annual report, chairman Shahman Azman said the company’s focus going forward will be to remain as a responsible financier in the civil servant market.“We will keep to our commitment to grow quality financing in line with macroeconomic development.

“Internally, we will work towards enhancing operations and procedures for improved efficiency and cost optimisation.

“Another initiative will be to channel resources to ensure we meet regulatory compliance requests, including syariah and environmental, social and governance requirements, given RCE Capital’s inclusion as one of the syariah-compliant securities and part of FTSE4Good Indices constituency.”

Shahman said global economic growth is anticipated to moderate in 2022 and 2023 due to inflation, debt and income inequality, in view of expected outbreaks of potential new Covid-19 variants and the current Russia-Ukraine military conflict.

“Arising from divergent recovery progress from the pandemic-induced economic impact, a widened gap in global growth rate between advanced and developing economies is evident.

“In light of the uncertain outlook, concerted international efforts and deliberated fiscal policies are required to realign the economic recovery,” he said.

Shahman also said RCE Capital will continue acknowledging and leveraging the significance of digitalisation in advancing its business.

“In June 2021, we participated in a consortium led by Paramount Corp Bhd to apply for one of five digital banking licences offered by Bank Negara.

“In spite of the fact that our consortium’s application was unsuccessful, the group remains open to digital banking prospects and is keeping our options open to working with any of the successful parties in the future.”

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