RCE Capital's 1Q profit strengthens on steady consumer loan growth

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KUALA LUMPUR (Aug 23): RCE Capital Bhd's net profit for the first quarter ended June 30, 2018 (1QFY19) grew 11% to RM23.2 million from RM20.93 million a year earlier, on higher interest income arising from steady loan growth in its consumer financing segment.

Quarterly revenue also rose at 11% to RM63.24 million from RM57.1 million in the previous corresponding quarter. Earnings per share grew to 6.81 sen from 6.18 sen previously.

RCE said its consumer financing segment's pre-tax profit rose 19% to RM31.1 million from RM26.1 million.

The investment holding, management services and others segment, however, a recorded pre-tax loss of RM20,000 compared to a pre-tax profit of RM1.3 million previously, due to the write back of allowance for impairment loss on receivables that amounted to RM1.3 million in relation to a factoring business.

Moving forward, the group said it remains vigilant and cautious of its potential growth in the current financial year.

"The group expects to be profitable in its pursuit to sustain the solid revenue stream from its quality loans portfolio," the group said.

RCE's share price closed unchanged at RM1.63 today, with about 171,200 shares traded, giving it a market capitalisation of RM 583.65 million.