KUALA LUMPUR: RHB Bank Bhd’s net profit increased to RM2.71 billion in the financial year ended Dec 31, 2022 (FY22) compared with RM2.62 billion a year ago, attributed mainly to higher net fund-based income, absence of modification loss (ML) and lower expected credit losses (ECL).
Revenue rose to RM13.28 billion from RM11.75 billion previously, it said in a filing to Bursa Malaysia today.
The bank said its net fund-based income improved by 8.6% to RM6.38 billion driven by higher gross fund based income, which grew 18.3% year-on-year (y-o-y) supported by loans growth of 6.9%, with net interest margin for the year at 2.24% compared with 2.20% recorded last year.
It noted, however, that the non-fund based income declined by 10.6% to RM1.93 billion, primarily from lower fee income, insurance underwriting surplus and net trading and investment income.
It also said that the ECL reduced by 42.9% to RM421.2 million from lower ECL on loans and securities, and higher bad debts recovered. Correspondingly, the credit charge ratio improved to 0.15% compared with 0.29% last year.
RHB said the group’s total assets increased 7.3% from December 2021 to RM310.8 billion as at Dec 31, 2022. Net assets per share was RM6.76, with shareholders’ equity at RM28.7 billion as of end-December 2022.
Its capital position remained strong; the group’s Common Equity Tier-1 and total capital ratio stood at 16.9% and 19.3% respectively.
The group’s gross loans and financing grew 6.9% y-o-y to RM212.2 billion, mainly supported by growth in mortgage, auto finance, small and medium enterprises, commercial, Singapore, and Cambodia, while domestic loans and financing grew 5.3% y-o-y, it said.
RHB said gross impaired loans was RM3.3 billion as of December 2022 with gross impaired loans ratio of 1.55%, compared with RM3.0 billion and 1.49% respectively as of December 2021.
Customer deposits increased 3.9% y-o-y to RM227.2 billion, attributed to growth in fixed deposits and current accounts and saving accounts (CASA) of 6.7% and 1.3% respectively, the bank said. CASA composition stood at 29.2% while liquidity coverage ratio remained sound at 162.1% as at Dec 31, 2022.
For the fourth quarter ended Dec 31, 2022, RHB Bank posted a higher net profit of RM772.12 million against RM631.17 million a year ago, mainly due to higher net fund based and non-fund based income, absence of ML and lower ECL, while revenue rose to RM3.95 billion from RM2.89 billion previously.
RHB Banking Group managing director and CEO Mohd Rashid Mohamad said the group demonstrated resilience and delivered commendable performance for FY22.
“Our growth momentum and fundamentals remained strong as reflected by our strong capital and liquidity positions.
“The group’s immediate-term focus is to stay the course in executing our ‘Together We Progress 24’ strategy and work towards realising the benefits, focusing on achieving quality growth, driving service excellence and improving efficiency,” he said in a separate statement filed with the exchange.
Rashid said, however, RHB remained vigilant in managing asset quality and adopts the highest level of governance in managing day-to-day business and operations.
“We remain committed to providing the support needed to vulnerable segments of customers,” he added.
RHB Banking Group declared a second interim dividend of 25 sen per share, amounting to RM1.06 billion in respect of FY22, consisting of cash payout of 20 sen per share and an electable portion under the Dividend Reinvestment Plan of 5 sen per share.
Together with its first interim dividend of 15 sen per share, the total dividend for FY22 amounts to 40 sen per share or 62.5% payout ratio, translating into a dividend yield of 6.9%.
“This dividend payout is reflective of our appreciation to our shareholders for their continued support, trust and loyalty,” Rashid said. – Bernama
