KUALA LUMPUR (Feb 28): RHB CAPITAL BHD [] posted an 8.09% fall in profits to RM348.39 million for the fourth quarter ended Dec 31, 2011, from RM380.15 million due to increased competition among banks.
It said on Tuesday its revenue increased 10.5% to RM1.89 billion to RM1.71 billion. Earnings per share were 15.80 sen compared with 17.70 sen a year ago.
The lower margins were attributed to stiffer competition in both loans and deposits, as well as a relatively lower yielding credit risk-free public sector loans and financing on book.
RHB Cap said the increase in the overnight policy rate (OPR) in May 2011, coupled with several increases in the statutory reserve requirement (SRR) contributed to the lower net interest income.
For the financial year ended Dec 31, 2011, revenue was up 15.12% to RM7.08 billion from RM6.15 billion. Meanwhile, profit rose 5.63% to RM1.50 billion from RM1.42 billion.
“In line with our commitment to consistently provide value to our shareholders, a final dividend of 11.82% less 25% tax and single tier dividend of 5.59% totaling RM318.7 million has been proposed.
"Together with the interim dividend of 8.00% less tax, the total gross dividend for 2011 would amount to 25.41% per share. This is in line with the group’s stated dividend policy of 30% payout ratio”, said RHB Capital chairman Datuk Mohamed Khadar Merican.
The improvement in performance was attributable to higher net interest income, other operating income, income from its Islamic banking arm as well as lower loan loss provisions and impairment losses on other assets. However, this was partly offset by other operating expenses.
It said on Tuesday its revenue increased 10.5% to RM1.89 billion to RM1.71 billion. Earnings per share were 15.80 sen compared with 17.70 sen a year ago.
The lower margins were attributed to stiffer competition in both loans and deposits, as well as a relatively lower yielding credit risk-free public sector loans and financing on book.
RHB Cap said the increase in the overnight policy rate (OPR) in May 2011, coupled with several increases in the statutory reserve requirement (SRR) contributed to the lower net interest income.
For the financial year ended Dec 31, 2011, revenue was up 15.12% to RM7.08 billion from RM6.15 billion. Meanwhile, profit rose 5.63% to RM1.50 billion from RM1.42 billion.
“In line with our commitment to consistently provide value to our shareholders, a final dividend of 11.82% less 25% tax and single tier dividend of 5.59% totaling RM318.7 million has been proposed.
"Together with the interim dividend of 8.00% less tax, the total gross dividend for 2011 would amount to 25.41% per share. This is in line with the group’s stated dividend policy of 30% payout ratio”, said RHB Capital chairman Datuk Mohamed Khadar Merican.
The improvement in performance was attributable to higher net interest income, other operating income, income from its Islamic banking arm as well as lower loan loss provisions and impairment losses on other assets. However, this was partly offset by other operating expenses.
