Business

Tuesday August 28, 2012

RHB Capital records 19% increase in earnings


PETALING JAYA: RHB Capital Bhd posted a 18.99% higher net profit of RM453.85mil for the second quarter ended June 30 from RM381.39mil a year ago.

The banking group said in its filing to Bursa Malaysia that the increase was driven by higher net interest income, strong growth in other operating income and income from the Islamic banking business, and lower allowance for impairment on loans and financing, partially offset by higher other operating expenses.

RHB’s revenue rose 7.73% to RM1.93bil in the same period from RM1.79bil in the corresponding period in the previous year.

The banking group said its first half ended June 30 net profit rose 6% year-on-year to RM889.4mil on the back of a 6.6% increase in revenue to RM2.3bil.

Profit in most of the bank’s segmented businesses fell, except for the corporate and investment banking and group treasury segments.

In the corporate and investment banking segment, profit improved significantly to RM342.5mil attributable to higher writeback on allowances on loans impairment, higher fee income and higher interest income.

In said the group treasury segment profit was higher by 9.4% to RM294.4mil due to higher net gains from disposal of trading and investment securities portfolio and higher fee income. However, it was partially offset by lower net foreign exchange gains and higher overhead costs.

Earnings per share were higher at 20.5 sen in 2Q12 compared to 17.6 sen in 2011.

RHB had proposed an interim single tier dividend of 6 sen, amounting to RM134.1mil.

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