corporate

RHB Bank's net profit fell 4.1pc on higher operating expenses and expected credit loss

KUALA LUMPUR: RHB Bank Bhd's net profit fell 4.1 per cent to RM730.17 million in the first quarter (Q1) ended March 31, 2024 from RM761.67 million  for the same period a year ago due to higher operating expenses and expected credit loss (ECL).

However, the group's revenue increased to RM4.40 billion from RM3.92 billion previously.

The bank's total income increased by 9.5 per cent year on year (YoY) to RM2.1 billion.

According to RHB, the group's net fund based income increased marginally YoY to RM1.4 billion on the back of higher funding income, mainly due to growth in gross loans and financing of 5.4 per cent YoY.

Meanwhile, it said net interest margin (NIM) for the quarter was 1.83 per cent. The group continued to manage its funding costs through an active liability management initiative.

"Non-fund based income increased 31.6 per cent YoY to RM702.7 million, primarily due to higher fee income, net gains on forex and derivatives, net trading and investment income, and net income from the insurance business," it said.

Year-to-date, the RHB's gross loans and financing grew 1.1 per cent to RM224.9 billion while customer deposits were RM242.9 billion.

Current account savings account (Casa) grew 2.9 per cent year-to-date to RM70.4 billion while Casa composition stood at 29 per cent.

Group managing director and group chief executive officer Mohd Rashid Mohamad said the bank delivered a commendable financial performance in Q1 FY24 with a strong balance sheet due to robust capital and liquidity positions.

"We will continue to improve business performance and asset quality, capture opportunities, and grow market share in the targeted segments," Mohd Rashid added. Ends

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