KUALA LUMPUR (May 25): RHB Capital Bhd's first quarter net profit rose 16% to RM552.02 million from a year earlier, on higher net interest and Islamic banking income, besides lower operating expenses.
In a statement to Bursa Malaysia today, RHB Capital said its RM552.02 million net profit in the first quarter ended March 31, 2016, rose from RM476.28 million. Revenue was higher at RM2.73 billion versus RM2.7 billion.
"The strong performance was primarily contributed by net interest income growth and positive results of our cost-improvement efforts.
"Growth in the banking sector is expected to be modest, with slower loan demand, pressure on margins, continued subdued fee income from investment banking and capital markets and expectation of deterioration in asset quality," RHB Capital said.
RHB Capital said gross loans rose 4.2% to RM149.6 billion, while customer deposits decreased 0.8% to RM157.5 billion.
"Business banking loans and financing recorded the strongest growth at 14.5% on annualised basis. The group’s domestic loan market share stood at 9.3% as at 31 March 2016," RHB Capital said.
At 12:30pm, RHB Capital shares rose five sen or 0.8% to settle at RM5.97 today, for a market value of RM18.29 billion. The stock saw 92,200 shares traded.