KUALA LUMPUR: RHB Capital Bhd’s (RHBCap) net profit for its third quarter ended Sept 30, 2011 (3QFY11) grew 7.12% to RM376.4 million from RM351.35 million a year ago on higher income from Islamic banking, offset by lower net interest income.
In a filing with Bursa Malaysia yesterday, RHBCap said its pre-tax profit rose 8.58% to RM492.11 million from RM453.21 million while net operating income fell 0.96% to RM1.03 billion from RM1.04 billion a year ago.
Net interest income declined 1.47% to RM694.95 million from RM705.34 million; other operating income fell 14.25% to RM215.52 million from RM251.35 million while income from Islamic banking grew 42.94% to RM120.42 million from RM84.24 million a year ago.
Earnings per share was 17.2 sen while net assets per share was RM5.09 as at Sept 30.
In a press statement, RHBCap said gross loans grew 13% to RM94.5 billion as at Sept 30, 2011. This mainly comprised public sector lending, purchase of securities, purchase of transport vehicles and purchase of residential property.
RHBCap said its domestic loans growth of 12.5% had outpaced the industry’s growth of 10.1% for the first nine months of 2011.
Customer deposits also grew 16.2% to RM109.7 billion as at Sept 30, 2011, which RHBCap said surpassed the industry growth momentum of about 9.4%.
As at Sept 30, RHBCap’s loans-to-deposits ratio stood at 82.6%.
RHBCap noted that its net interest income grew 7.5% to RM2.078 billion, driven by strong loans growth of about 13%.
But margins remained under pressure due to intense competition and several increases in overnight policy rate (OPR) and statutory reserve requirement (SRR) over the past 12 months, RHBCap added.
For the nine-month period, RHBCap’s net profit grew 10.22% to RM1.154 billion from RM1.047 billion while pre-tax profit rose 11.37% to RM1.531 billion from RM1.375 billion a year ago.
RHBCap said the higher pre-tax profit was mainly due to higher net interest income, higher income from its Islamic banking business and lower allowance for impairment on loans, financing and other losses, amongst other factors.
However, the higher pre-tax profit was also partly offset by higher operating expenses, RHBCap said.
Net operating income for the nine months grew 7.78% to RM3.171 billion from RM2.942 billion a year ago.
Quarter-on-quarter (q-o-q), RHBCap’s net profit slid 4.61% to RM376.4 million from RM394.619 million while pre-tax profit fell 6.82% to RM492.11 million from RM528.175 million.
Net operating income, however, rose 1.66% q-o-q to RM1.03 billion from RM1.014 billion.
The lower pre-tax profit was attributed to several factors including lower operating income, lower net interest income and higher impairment losses on other assets, but partly offset by higher income from its Islamic banking business.
In a press statement, RHBCap chairman Datuk Mohamed Khadar Merican said RHBCap expects to continue its business growth momentum for the remainder of its FY11 ending Dec 31, 2011.
“Strengthening of credit policies and risk management practices and sound assets and liability management will continue to be high on our agenda,” Mohamed Khadar said.
This article appeared in The Edge Financial Daily, November 30, 2011.
In a filing with Bursa Malaysia yesterday, RHBCap said its pre-tax profit rose 8.58% to RM492.11 million from RM453.21 million while net operating income fell 0.96% to RM1.03 billion from RM1.04 billion a year ago.
Net interest income declined 1.47% to RM694.95 million from RM705.34 million; other operating income fell 14.25% to RM215.52 million from RM251.35 million while income from Islamic banking grew 42.94% to RM120.42 million from RM84.24 million a year ago.
Earnings per share was 17.2 sen while net assets per share was RM5.09 as at Sept 30.
In a press statement, RHBCap said gross loans grew 13% to RM94.5 billion as at Sept 30, 2011. This mainly comprised public sector lending, purchase of securities, purchase of transport vehicles and purchase of residential property.
RHBCap said its domestic loans growth of 12.5% had outpaced the industry’s growth of 10.1% for the first nine months of 2011.
Customer deposits also grew 16.2% to RM109.7 billion as at Sept 30, 2011, which RHBCap said surpassed the industry growth momentum of about 9.4%.
As at Sept 30, RHBCap’s loans-to-deposits ratio stood at 82.6%.
RHBCap noted that its net interest income grew 7.5% to RM2.078 billion, driven by strong loans growth of about 13%.
But margins remained under pressure due to intense competition and several increases in overnight policy rate (OPR) and statutory reserve requirement (SRR) over the past 12 months, RHBCap added.
For the nine-month period, RHBCap’s net profit grew 10.22% to RM1.154 billion from RM1.047 billion while pre-tax profit rose 11.37% to RM1.531 billion from RM1.375 billion a year ago.
RHBCap said the higher pre-tax profit was mainly due to higher net interest income, higher income from its Islamic banking business and lower allowance for impairment on loans, financing and other losses, amongst other factors.
However, the higher pre-tax profit was also partly offset by higher operating expenses, RHBCap said.
Net operating income for the nine months grew 7.78% to RM3.171 billion from RM2.942 billion a year ago.
Quarter-on-quarter (q-o-q), RHBCap’s net profit slid 4.61% to RM376.4 million from RM394.619 million while pre-tax profit fell 6.82% to RM492.11 million from RM528.175 million.
Net operating income, however, rose 1.66% q-o-q to RM1.03 billion from RM1.014 billion.
The lower pre-tax profit was attributed to several factors including lower operating income, lower net interest income and higher impairment losses on other assets, but partly offset by higher income from its Islamic banking business.
In a press statement, RHBCap chairman Datuk Mohamed Khadar Merican said RHBCap expects to continue its business growth momentum for the remainder of its FY11 ending Dec 31, 2011.
“Strengthening of credit policies and risk management practices and sound assets and liability management will continue to be high on our agenda,” Mohamed Khadar said.
This article appeared in The Edge Financial Daily, November 30, 2011.
