KUALA LUMPUR (Aug 29): RHB Bank Bhd reported a 43% rise in second quarter net profit at RM500.96 million from RM350.17 million a year earlier. Profit rose on higher net interest and Islamic banking income and lower allowance for bad loans.

In a statement to Bursa Malaysia today, RHB said group revenue, however, fell to RM2.63 billion in the second quarter ended June 30, 2017 (2QFY17) from RM2.65 billion.

"In line with our commitment to reward shareholders, the board of directors has declared an interim single tier dividend of 5 sen per share totalling RM200.5 million, representing a dividend payout ratio of 20%," RHB said.

RHB said 1HFY17 net profit rose to RM1 billion from RM915.05 million a year earlier. Revenue was lower at RM5.25 billion versus RM5.36 billion.

"For the first six months ended June 30, 2017, the group reported a net profit of RM1.001 billion as compared to RM915.1 million for the same period in 2016, an increase of 9.4%. The year-on-year earnings improvement was mainly due to lower impairment losses on other assets and higher net funding income, partially offset by lower non fund based income, higher overheads and higher loan loss impairment," RHB said.

RHB said it expected to performed better in FY17 as it pursues "selective growth" while it effectively manages asset quality and enhance productivity.