KUALA LUMPUR, May 27 — RHB Bank Bhd has posted a higher net profit of RM650.39 million in the first quarter ended March 31, 2021 (Q1 2021), up 13.9 per cent from the same period last year, mainly due to higher net fund-based and non-fund based income.
The year-on-year (yoy) earnings improvement were mainly due to higher net funding income and higher non-funding income, partially offset by higher allowances for credit losses, higher operating expenses and net modification loss for the period, the bank said in a filing with the exchange.
Revenue, however, slipped to RM2.91 billion versus RM3.21 billion previously while basic earnings per share rose to 16.22 sen from 14.24 sen before.
In a statement, group managing director Datuk Khairussaleh Ramli said RHB's net fund-based income increased by 12.6 per cent yoy to RM1.42 billion, driven by proactive funding cost management which dropped 36.4 per cent, supported by current and saving account (CASA) ratio growth of 25.6 per cent.
Net interest margin for the quarter was 2.17 per cent compared with 2.11 per cent recorded in the corresponding period last year.
The bank also said that its balance sheet and capital position remained robust.
“The group’s gross loans and financing grew by 6.8 per cent yoy to RM188.2 billion, mainly supported by growth in mortgage, auto finance, SME and Singapore. Domestic loans and financing grew 6.0 per cent yoy while the domestic loan market share stood at 9.0 per cent as of end-March 2021,” he said.
The bank's gross impaired loans was at RM3.1 billion as at March 31, 2021, with a gross impaired loans ratio of 1.66 per cent compared with RM3.5 billion and 2.00 per cent respectively as at March 31, 2020.
Meanwhile, loan loss coverage ratio for the group, excluding regulatory reserves, remained strong at 119.5 per cent as at end-March 2021.
Customer deposits increased by 12.4 per cent yoy to RM218.0 billion, predominantly attributed to CASA and fixed deposits growth of 25.6 per cent and 9.0 per cent respectively. CASA composition stood at 30.6 per cent as at March 31, 2021.
“Malaysia’s economy is expected to recover this year, the rate of which depends largely on the pandemic containment measures that are in place and the pace of the national vaccination programme. The banking sector is projected to remain resilient, with stable overnight policy rate (OPR) for the rest of the year.
“We expect our performance in FY2021 to be better than FY2020 despite the ongoing headwinds.
"Given the continued economic uncertainties brought about by the recent surge in positive Covid-19 cases, we continue to exercise vigilance and prudence, maintaining our focus on upholding our strong fundamentals by preserving capital and liquidity strength, and closely monitoring asset quality by intensifying our recovery and collection efforts,” he said.
RHB Bank, he added, has been engaging with its customers and would continue to provide assistance where necessary to see them through this challenging period.
As at March 31, 2021, total repayment assistance approved amounted to RM25.5 billion, equivalent to 15.3 per cent of group domestic loans and financing, benefitting 182,742 customers, both individuals and businesses.
"With several repayment assistance programmes made available, customers can come forward and get in touch with us through our various channels," he added. — Bernama
