KUALA LUMPUR: RHB Bank Bhd group managing director and CEO Mohd Rashid Mohamad said there is likely to be continued challenges of limited fiscal space, inflationary pressures and labour shortages in 2023.
However, he maintained the bank's fundamentals remain strong and it would continue to closely monitor asset quality moving forward.
"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," he said in a statement.
RHB posted a net profit of RM700.48mil in 3Q22, up from RM635.59mil in the previous corresponding quarter, on higher net fund-based income, the absence of modification loss and lower expected credit losses (ECL).
Earnings per share was 16.63 sen compared with 15.64 sen in the previous same quarter.
Revenue was reported at RM3.48bil, up from RM3.03bil in the comparative quarter.
For the nine months period to Sept 30, 2022, RHB's net profit was RM1.94bil, slightly lower than RM1.99bil in the 2021 period while revenue was RM9.33bil, up from RM8.86bil in the year-ago period.
Year-to-date, the group reported a 5.8% increase in total assets to RM306.4bil as at Sept 30, 2022, representing a net assets per share of RM6.66, with shareholders' equity at RM28bil.
The bank'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 RM209.7bil, mainly supported by growth in mortgage, auto finance, SME, Commercial, Singapore and Cambodia.
Domestic loans and financing grew 4.3% year-to-date.
Meanwhile, the group's gross impaired loans was RM3.3bil as at September 2022 with gross impaired loans ratio of 1.57%, compared with RM3.3bil and 1.62% respectively in June 2022.
Loan loss coverage ratio for the group, excluding regulatory reserves, remained strong at 118.1% as at end-September 2022, compared with 122.4% in December 2021.
Customer deposits were up 3.1% year-to-date to RM225.6bil, while growth in fixed and money market time deposits and current account savings account (Casa) was 3.1% and 3% respectively.
Casa composition stood at 29.9% while liquidity coverage ratio (LCR) remained healthy at 147.3% as at Sept 30, 2022.