PETALING JAYA: RCE Capital Bhd
anticipates favourable outcomes from the Public Service Remuneration System (SSPA) review, considering it a positive factor for the company’s long-term growth.
Following an engagement with the personal financing provider, Maybank Investment Bank Research (Maybank IB Research) said RCE expressed optimism regarding the government’s forthcoming guidelines for civil service salaries, expecting growth in gross financing receivables.
“RCE hopes the government’s introduction of new guidelines for civil service salaries in the next couple of months will translate into gross financing receivables growth accelerating,” it said in a report.
On RCE’s earnings for the third quarter of financial year 2024 (3Q24,) the research firm said it was within expectations.
The group posted a core net profit of RM34.6mil, bringing its nine-month core net profit to RM109.7mil.
Non-performing financing ratio inched up 10 basis points quarter-on-quarter (q-o-q) to 3.8% as at end-3Q24 because there was an uptick in early retirements and resignations in the civil service.
“Consequently, credit cost (net allowances for impairment loss on receivables) rose 21% q-o-q to RM8.3mil or the highest level since 3Q18.
“Moreover, gross financing receivables growth decelerated to 1% q-o-q in 3Q24 from 2% in 2Q24,” said Maybank IB.
