KUALA LUMPUR: RHB Bank posted a higher net profit of RM2.62bil for the year ended Dec 31, 2021, compared to RM2.03bil in the previous year on the back of higher net fund-based income.

       Overall revenue for 2021 was RM11.75bil, 6% lower than in the previous year.

       For the fourth quarter of the year, net profit increased to RM631.2mil from RM438.6mil due to the lower expected credit loss (ECL), while revenue was 6.17% lower y-o-y at RM2.89bil.

       The board of directors has proposed a final dividend of 25 sen a share consisting of a cash payout of 15 sen a share and an electable portion under the dividend reinvestment plan of 10 sen per share.

       "The group had demonstrated resilience and the ability to sustain growth, as well as providing the much needed support to our customers amid continued uncertainty in the operating environment.

       "Nevertheless, we remain prudent in managing our asset quality while continuing to enhance our governance and risk management practices.

       "The Group’s capital and liquidity positions for FY2021 remain strong," RHB Banking Group officer-in-charge/principal officer Mohd Rashid Mohamad.

       For FY21, the bank said that net fund-based income improved to RM5.87bil due to proactive cost management, which dropped 24.1% year-on-year (y-o-y) supported by current account savings account (Casa) growth of 4.5%.

       Net interest margin for the year was 2.14% compared with 2.06% in the previous year.

       Meanwhile, the bank's non fund-based income fell to RM2.16bil due to lower brokerage income and net trading and investent income.

       The bank reported a 4% higher operating expense of RM3.52bil.

       With positive JAWS, cost-to-income ratio improved to 45.2% compared with 47.1% in 2020.

       ECL dropped to RM737.2mil due to lower ECL on loand and higher bad debts recovered during the year.

       Consequently, the credit charge ratio improved to 0.29% compared with 0.58% in 2020.

       Gross loans and financing rose 6.7% y-o-y to RM198.5bil on the back of growth in the mortgage, auto finance, SME, commercial and Singapore segments.

       Domestic loans and financing grew 4.8% y-o-y.

       The bank said gross impaired loans was RM3bil as at end-2021 with gross impaired loans ratio of 1.49%.

       Loan loss coverage ratio stood well above 100% at 122.4% at the end of the year.

       Customer deposits rose 7.5% y-o-y to RM218.7bil due to fixed and money market time deposits growth of 9% and Casa of 4.5%.

       Casa composition stood at 30% a at end-2021 while liquidity coverage ratio remained healthy at 155.7%.