Friday 29 Mar 2024
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KUALA LUMPUR (Aug 24): RHB Bank Bhd reported a 37% drop in second quarter net profit from a year earlier mainly on higher bad loan allowance and impairment on a corporate bond in Singapore.

In a statement to Bursa Malaysia today, RHB said net profit fell to RM350.17 million in the second quarter ended June 30, 2016 (2QFY16) from RM559.03 million. Revenue was, however, higher at RM2.69 billion compared to RM2.65 billion.

During 2QFY16, bad loan allowance rose to RM59.74 million while the Singapore corporate bond impairment amounted to RM251.99 million, according to RHB's income statement.

"However, loans grew by 1.4% in the second quarter compared to a decrease of 1.2% in the first quarter," RHB said. The group declared a dividend of five sen a share for 2QFY16.

RHB's cumulative 1HFY16 net profit dropped to RM915.05 million from RM1.07 billion a year earlier. Revenue was higher at RM5.43 billion versus RM5.38 billion.

"The 12.7% reduction in (1HFY16) pre-tax profit was primarily due to a one-off full impairment on a corporate bond in Singapore for an equivalent amount of RM253.5 million in the current period and a write back for mortgage portfolio collective allowances totalling RM131.4 million in 2015," RHB said.

Looking ahead, RHB said it was mindful of the challenging macro environment. But the group said it remained confident on its business outlook due to stronger capitalisation, leaner organisation and greater efficiency.

"The group is expected to deliver a better performance this year and is on the right trajectory to achieve its long-term objectives," RHB said.

At 12:30pm, RHB shares settled unchanged at RM5 for a market value of RM19.97 billion. The stock saw 144,600 shares traded.

 

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