RHB Capital's 1H profit at RM1b, revenue up at RM5.34b

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KUALA LUMPUR (Aug 28): RHB Capital Bhd's second quarter net profit dipped 6% from a year earlier, on lower net interest income and higher operating expenses.

In a statement to the exchange today, RHB Capital (fundamental: 1.5; valuation: 2.1) said net profit dipped to RM524.59 million in the second quarter ended June 30, 2015 (2QFY15), from RM556.51 million. Profit drop came on the back of revenue rise at RM2.64 billion, from RM2.45 billion.

1HFY15 net profit was lower at RM1.001 billion versus RM1.007 billion, on the back of higher revenue at RM5.34 billion, compared to RM4.85 billion.

RHB Capital's group managing director Datuk Khairussaleh Ramli said in a statement that its 1HFY15 financials came amid a tougher industry backdrop.

"“We have been able to maintain our net profit for the first six months at RM1.0 billion, which is credible in this current environment.

"The global economic  outlook will remain challenging in the second half of 2015. Domestic loan growth should moderate, on  the  back of softer consumer spending  and private investment, while capital market and wholesale banking activities are expected to remain modest," Khairussaleh said.

In 2QFY15, RHB Capital's income statement showed that net interest income fell to RM784.42 million, from RM827.73 million a year earlier. Operating expenses increased to RM842.53 million, from RM796.92 million.
1HFY15's net interest income declined to RM1.58 billion, from RM1.65 billion a year earlier.

Today, RHB shares rose nine sen or 1.4% to RM6.53, giving the group a market capitalisation of RM16.91 billion.

The stock saw 436,900 shares having changed hands. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)