PETALING JAYA: RHB Bank Bhd grew second quarter ended June 30, 2018 net profit by 12.2%, on higher net interest income, income from Islamic banking business and significantly lower credit losses.
Lower credit losses was mainly due to a RM19.0 million charge for equity instruments designated at fair value through other comprehensive income for the quarter under review, as opposed to a RM109.2 million charge in the corresponding quarter in 2017.
The group made a net profit of RM570.3 million, compared with RM501.0 million for the same quarter in the preceding year.
This was on slightly higher revenue of RM2.7 billion, compared with RM2.6 billion.
RHB declared an interim dividend of 7.5 sen for the the financial year ending Dec 31, 2018, to be paid out at a yet to be determined date.
For the first half the financial year ending June 30, 2018 the group grew net profit by 13.8% to RM1.2 billion, compared with RM1.0 billion for the same period in 2017, mainly due to higher net fund based and non-fund based income and lower allowances for credit losses on other assets.
This was on a 3.5% hike in revenue of RM5.4 billion, compared with RM5.2 billion.
The group said in a statement, cost-to-income ratio improved to 49.1% from a year ago, while customers deposits stood at RM166.0 billion.
Gross impaired loans was at RM3.8 billion as at June 30, 2018, with gross impaired loans ratio of 2.33% from 2.38% (based on financial year 2018 restated opening balance post-MFRS 9). Loan loss coverage for the group, including regulatory reserves was at 104.1%.