KUALA LUMPUR, Feb 27 — RHB Bank Bhd saw its net profit jumped to RM2.31 billion for the financial year ended December 31, 2018, up by 18.2 per cent from RM1.95 billion recorded in the same period in 2017.
The improved performance was largely driven by higher net fund based and non-fund based income and lower allowances for credit losses on loans and other assets, partially offset by higher overheads.
Revenue increased to RM12.69 billion versus RM11.87 billion, while basic earnings per share rose to 57.49 sen from 48.63 sen, the company said in a filing to Bursa Malaysia.
“Malaysia’s gross domestic product is expected to grow by 4.6 per cent in 2019 compared to 4.7 per cent growth recorded in 2018.
“Private sector activity will continue to be the primary driver of growth while a recovery in the commodity output is anticipated to support export growth,” it said.
However, the bank said a challenging external environment amidst intensifying trade protection will continue to present downside risks.
For the banking sector, RHB said loans growth is expected to grow between 5.0 per cent and 5.5 per cent, supported by both the consumer and business segments.
With the challenging backdrop, the group remains cautious in its business approach, with a view to continuing to invest resources in relevant areas for long term growth opportunities.
At lunch, shares of RHB was flat at RM5.59 with 24,89 million shares transacted. — Bernama