RHB Bank reports net profit of RM600.27 million in first quarter
KUALA LUMPUR: RHB Bank Bhd’s net profit for the first quarter ended March 31, 2022 fell by 7.69% to RM600.27 million from RM650.29 million in the prior year quarter.
The bank recorded revenue of RM2.86 billion, down 16.15% from the comparative quarter.
In a statement, the bank acknowledged the difficult business environment, but pointed to its strong capital ratio and liquidity levels.
“Going forward, we will remain cautious in managing the business and focus on driving responsible growth, as well as managing the quality of our assets.
“We will also continue to provide appropriate assistance to our customers who remain impacted by the Covid-19 pandemic,” said Mohd Rashid Mohamad, Managing Director and CEO of RHB Banking Group.
As of 1QFY22, RHB’s fund-based net income improved to RM1.47 billion, while fund-based gross income increased by 2.7% on loan growth of 7%.
Net interest margin for the quarter was 2.11%, compared to 2.17% in the same quarter in 2021.
Meanwhile, non-fund based revenue decreased to RM432.7 million, mainly due to lower fee income and net trading and investment income, offset by an underwriting surplus of higher insurance.
Operating expenses decreased to RM859.1mil.
With a positive JAWS, the cost/income ratio improved to 45.1% from 46% a year ago.
Expected Credit Losses (ECLs) were reduced to RM153.8 million due to lower ECLs on loans.
As a result, the annualized credit expense ratio improved to 0.29% compared to 0.39% for the same quarter last year.
At the end of March 2022, the group’s total assets increased by 2.8% to RM297.6 billion compared to December 2021, while shareholders’ equity stood at RM28.1 billion.
The Common Equity Tier-1 (CET-1) ratio and the group’s total capital ratio amount to 16.8% and 19.4% respectively.
The group’s gross loans and financings increased by 1.4% year-to-date to RM201.3 billion, mainly supported by growth in mortgages, SMEs and Singapore.
Domestic loans and financing have increased by 1% since the beginning of the year.
Gross impaired loans were RM3 billion with a gross impaired loan ratio of 1.5% compared to 1.49% in December 2021.
The loan loss coverage ratio excluding regulatory reserves increased to 125.7% at the end of March 2022 from 122.4% in December 2021.
Customer deposits increased by 3.6% year-to-date to RM226.5 billion, mainly due to growth of 5.1% in fixed term and money market deposits.
The composition of the savings account in current account (Casa) amounts to 29% as of March 31, 2022.
The Liquidity Coverage Ratio (LCR) remained strong at 144.8%.