Friday November 23, 2012
RHB Cap Q3 profit up 14%
Banking group attributes better earnings to higher net interest income
PETALING JAYA: RHB Capital Bhd recorded a 14.37% gain in net profit to RM487.48mil in the third quarter ended Sept 30, 2012 (Q3'12) compared with RM426.22mil in the corresponding period a year ago.
The rise in net profit was attributed to higher net interest income, other operating income and income from Islamic banking business, as well as lower allowance for impairment on loans and financing.
Meanwhile, revenue for the period rose 10.59% to RM1.96bil from RM1.77bil a year ago.
The business banking segment brought in lower profits at RM243.2mil on the back of lower write back on allowances for impairment on loans and higher overhead costs. This was partially offset by higher fee income and higher net interest income.
In the group treasury segment however, profit was higher by 4.8% to RM398.1mil, mainly attributable to higher net gains from disposal of trading and investment securities portfolio, higher net interest income, higher fee income and lower impairment losses on other assets.
Profit was partially offset by lower net foreign exchange gains and higher overhead costs.
RHB's Islamic banking business reported a lower profit by 1.3% to RM77.3mil caused by higher allowances for impairment on financing and higher overhead costs. This was partially offset by higher trading income, fee income and net interest income.
In the global financial banking segment, profit was lower by 1.3% to RM54.9mil, attributable to higher overhead costs. This was partially offset by higher net foreign exchange gains, higher fee income and higher net interest income.
The group said the completion of the acquisition of OSK Investment Bank Group on Nov 9, 2012 has enhanced its product offerings and geographical footprint into eight countries across the Asean region including Hong Kong.
In a statement RHB said it continued to strengthen its leadership position in targeted markets and product segments, building strong customer relationships as well as leveraging on its infrastructure and multiple distribution networks.
“The group foresees a continued competitive operating environment for the rest of the financial year. Barring any unforeseen circumstances, the group expects satisfactory results for the remainder of the financial year,” said RHB chairman Datuk Mohamed Khadar Merican.