KUALA LUMPUR: RHB Bank Bhd posted an improved net profit of RM1.99bil in the first nine months of 2021, compared with RM1.59bil recorded in the same period last year on the back of higher net fund-based income.
"Net fund based income improved to RM4,340.8mil driven by proactive funding cost management, which dropped 28.9% year-on-year supported by current account savings account (Casa) growth of 4.8%.
"Net interest margin for the quarter was 2.13% compared with 1.99% recorded in the corresponding period last year," said the bank in a statement.
Cumulative revenue over the three quarters to Sept 30, 2021, was 5.9% lower year-on-year (y-o-y) to RM8.86bil.
This was partly owing to a decline in non-fund-based income to RM1.74bil during the period, primarily from lower net trading and investment income.
Operating expenses increased 4.6% from a year ago to RM2.61bil. With positive JAWS, cost-to-income ratio improved to 44.5% compared with 48.8% a year ago.
"The group remained prudent and continued to be proactive by setting aside additional provisions to cater for potential adverse impact to asset quality.
"Consequently, ECL increased by 20.4% from the previous corresponding period to RM650.9mil with the annualised credit charge ratio standing at 0.45% compared with 0.39% for the same period last year," said RHB.
For the third quarter alone, RHB recorded a 2.15% improvement in net profit to RM635.59mil on the back of 2.74% higher revenue of RM3.03bil.
On balance sheet, the group's total assets increased 3.6% from December 2020 to RM280.9bil as at end-September 2021.
Shareholders' equity stood at RM27.9bil as at Sept 30, 2021.
The group’s common equity tier-1 (CET-1) and total capital ratio stood at 16.8% and 19.4% respectively.
Gross loans and financing grew by 4.6% year-to-date to RM194.6bil, mainly supported by growth in mortgage, SME, Commercial and Singapore.
Domestic loans and financing grew 2.6% year-to-date.
Gross loans and financing grew 4.6% year-to-date to RM194.6bil, mainly supported by growth in mortgage, SME, Commercial and Singapore.
Domestic loans and financing grew 2.6% year-to-date.
Customer deposits increased 5.2% year-to-date to RM214.0bil, predominantly attributed to fixed and money market time deposits growth of 6.6% and Casa of 2.8%.
Casa composition stood at 30.1% as at Sept 30, 2021.
Liquidity coverage ratio (LCR) remained healthy at 138%.
"The group continued its positive momentum in the first nine months of 2021 underpinned by our strong fundamentals as we remain to be the best capitalised bank in the industry with robust liquidity levels," said RHB group managing director and group CEO Datuk Khairussaleh Ramli.
Moving forward, he said the group will continue to monitor asset quality and make proactive credit provisions when necessary as it upholds its prudent stance.