PETALING JAYA: RHB Bank Bhd posted a net profit of RM722.3 million for the second quarter ended June 30, 2024 (Q2’24), 10.68% lower than the RM808.7 million registered in Q2’23, mainly due to higher operating expenses and expected credit loss (ECL).
Revenue rose 8.38% to RM4.41 billion in Q2’24 from RM4.04 billion posted in the same quarter last year.
The group declared an interim dividend of 15 sen per share, representing a 45% payout ratio.
For the first half of FY24 (H1’24), RHB reported revenue of RM8.82 billion, an increase of 10.73% from the RM7.96 billion recorded in the same period last year. Net profit fell 7.5% to RM1.45 billion from RM1.57 billion last year.
RHB Banking Group managing director and CEO Mohd Rashid Mohamad said that by leveraging the bank’s core strengths and emphasising quality business growth, including sustainable financial services, RHB achieved significant total income growth and delivered value to shareholders.
“For the first half of FY24, the group continued to build on its strong foundation, with sustained growth in total income and operating profit. In recognition of our shareholders’ unwavering support, we declare an interim dividend of 15 sen per share, representing a payout ratio of 45%,“ Mohd Rashid said.
For H1’24, the banking group’s net fund-based income increased 4.% year-on-year (y-o-y) to RM2.8 billion, driven by higher funding income from 6.4% y-o-y growth in gross loans and financing.
Net interest margin (NIM) improved by 6 bps quarter-on-quarter (q-o-q) to 1.89%.
RHB continued to manage its funding costs proactively through active liability management initiatives.
Considering this, the effective NIM was 1.99% for H1’24.
RHB’s non-fund-based income increased 28.5% y-o-y to RM1.4 billion, primarily due to higher fee income, net gains on forex and derivatives, net trading and investment income, and a one-off gain from the disposal of RHB Securities Vietnam Co Ltd.
Meanwhile, operating expenses amounted to RM1.9 billion in H1’24, mainly due to personnel, establishment and marketing costs.
The cost-to-income ratio improved to 46.3% compared with 47.5% a year ago, while the total ECL provided was RM360 million in H1’24, showing a downward trend from the first quarter of FY24.
RHB’s total assets increased 1% year-to-date (YTD) to RM331.9 billion, while net assets per share were RM7.27. As of June 30, 2024, shareholders’ equity was RM31.7 billion.
The group’s capital position remained robust, with Common Equity Tier-1 and total capital ratio at 16.5% and 19.2%, respectively.
Gross loans and financing grew 2.5% YTD to RM227.9 billion, supported by 2.8% growth in group community banking, 10.2% growth in Singapore, and 10.1% growth in the commercial segment.
“We are making significant progress in growing our sustainable financial services, achieving over RM31 billion of the RM50 billion target outlined in our 5-Year Sustainability Strategy Roadmap. We are set to embark on our new corporate strategy, which will be launched in the first quarter of 2025,” Mohd Rashid said.
