KUALA LUMPUR, Aug 29 — RHB Bank Bhd’s net profit for the first half of 2023 (1H 2023) ended June 30, 2023, rose 29.5 per cent to RM1.57 billion from RM1.21 billion registered in the same period last year.

Revenue increased to RM7.97 billion from RM5.76 billion previously.

For the second quarter of 2023 (2Q 2023), RHB’s net profit increased to RM808.70 million from RM630.07 million a year ago, while revenue climbed to RM4.05 billion from RM2.95 billion registered in the same quarter last year.

In a filing with Bursa Malaysia today, RHB said the better performance for the 1H 2023 was mainly due to higher non-fund-based income and lower expected credit losses (ECL).

"Non-fund based income increased 46.3 per cent to RM1.07 billion, primarily from higher net gain on forex and derivatives, and net trading and investment income.

"ECL reduced 144.4 per cent primarily due to writeback of management overlay. Excluding writebacks, normalised credit cost stood at 0.21 per cent compared with 0.27 per cent for the same period last year,” the bank said.

However, RHB noted that its net fund-based income was lower by 10.4 per cent to RM2.72 billion on the back of higher funding costs, mainly due to fixed deposits growth of 16.4 per cent year-on-year (y-o-y) with net interest margin (NIM) for the quarter at 1.82 per cent.

The bank also shared that its operating expenses increased 6.5 per cent for H1 2023 to RM1.80 billion, partly due to higher personnel costs from collective agreement adjustments and correspondingly, the cost-to-income ratio increased to 47.5 per cent compared with 44.9 per cent a year ago.

Moving forward, RHB said Malaysia is expected to sustain its economic growth momentum throughout the remainder of the year, anchored by resilient domestic demand.

"This is supported by robust household spending on the back of healthy labour market conditions, the revival of tourism-related activities, and the continued progress of multi-year infrastructure projects.

"However, the growth outlook is still subject to downside risks, mainly from the escalation of geopolitical tensions, inflationary pressures, and slower economic expansion in major economies,” it added.

Group managing director and group chief executive officer Mohd Rashid Mohamad said the group continued to deliver sustained financial performance for 1H 2023 despite the challenging economic and business environment.

"Our fundamentals remain strong, and we will continue to remain focused on the Group’s Together We Progress 2024 (TWP24) corporate strategy, which is now in its second year of execution.

"The group will continue to exercise prudent financial management and cost discipline, as well as accelerate its efforts in managing asset quality to maintain resilience and improve operational excellence.

"In appreciation of the support and loyalty that our shareholders have given us, we are pleased to declare an interim dividend of 15 sen per share, representing a payout ratio of 40.9 per cent,” he added. — Bernama