Skip to Content

Wednesday, November 20th, 2019

RHB Bank Q2 earnings at RM350m

Closed
by August 24, 2016 General
RHB Banking group managing director Datuk Khairussaleh Ramli explained that while the group's Q2 performance eas was affected by one large impairment on securities, “we are on the right track to achieve our long-term objectives set under the reframed strategy of focusing on performance”.

RHB Banking group managing director Datuk Khairussaleh Ramli explained that while the group’s Q2 performance eas was affected by one large impairment on securities, “we are on the right track to achieve our long-term objectives set under the reframed strategy of focusing on performance”.

KUALA LUMPUR: RHB Bank posted lower earnings of RM350.17mil in the second quarter ended June 30, 2016 after a one-off full impairment on a corporate bond in Singapore.

The country’s fourth largest fully integrated financial services group said on Wednesday the impairment was for an equivalent of RM253.5mil, hence impacting the earnings when compared with the RM559.02mil a year ago.

RHB Banking group managing director Datuk Khairussaleh Ramli explained that while the group’s Q2 performance was affected by one large impairment on securities, “we are on the right track to achieve our long-term objectives set under the reframed strategy of focusing on performance”.

“The group will stay on course in executing the various initiatives under the group 2017 IGNITE transformation programme, while continuing to be vigilant amidst a challenging macro environment and volatility in the market place”, he added.

Its revenue in Q2 rose 1.2% to RM2.686bil from RM2.654bil a year ago. Earnings per share were 8.9 sen compared with 8.1 sen a year ago. It rewarded shareholders with a dividend of five sen a share.

For the first half, it reported a pre-tax profit of RM1.224bil and net profit of RM915.1mil. The 12.7% reduction in pre-tax profit was primarily due to a one-off full impairment on a corporate bond in Singapore in the current period against a write back for mortgage portfolio collective allowances totalling RM131.4mil in 2015. 

“Excluding these two items, normalised pre-tax and net profit increased by 16.2% and 13.8% respectively,” it said.

Its revenue rose nearly 1% to RM5.426bil in the first half ended June 30, 2016 from RM5.375bil in the previous corresponding period. Earnings were lower at RM915.05mil compared with RM1.072bil.

On the outlook for the second half of 2016, RHB Bank said it would continue to be challenging as macro-economic uncertainties in most parts of the world will not spare Malaysia from the headwinds.

“Risks on external demands and softer consumer sentiments are expected to moderate Malaysia‟s GDP growth in 2016 to 4.0% from 5.0% in 2015.

“The Malaysian banking sector growth is expected to remain modest, attributable to a deceleration in corporate loans market and ongoing consolidation of household loans sector. A softer financial and capital market, and rising pressure on liquidity and asset quality will also weigh on the performance of banks,” it said.

Previous
Next