PETALING JAYA: RCE Capital Bhd’s net profit came in lower at RM31.55mil for the second quarter of its financial year ending March 31, 2022 (Q2’FY22) compared with RM32.99mil in Q2’FY21.

       The non-bank financial institution attributed the decline in earnings to lower refinancing activities by customers, offset with lower allowances for impairment loss on receivables and other expenses.

       It proposed a first interim dividend of seven sen per share.

       During the quarter in review, RCE Capital’s revenue fell to RM69.82mil from RM75.92mil due to restricted business activities arising from full movement control order, which took effect nationwide from June 1.

       It said in a filing with Bursa Malaysia that it recorded pre-tax profit of RM42.2mil in the current quarter as compared to RM44.2 million in the corresponding quarter.

       Year to date, the company’s net profit increased to RM66.93mil from RM55.82mil in the first half of FY21 (H1’FY21).

       Its revenue rose 5.1% to RM147.86mil in H1’FY22 from RM140.64mil in H1’FY21. This was primarily contributed by higher profit and net fee income.

       The group recorded a double-digit growth of 19.7% in its pre-tax profit to RM89.5mil in H1’FY22 from RM74.7mil in H1’FY21.

       RCE Capital said this was mainly led by higher net profit income and lower allowances for impairment loss on receivables.

       Commenting on its current year prospects, RCE Capital said following the gradual easing of movement restrictions, more sales campaigns are now in the pipeline to bring customers onboard, complemented by its digital transformation initiatives.

       It said the group would continue to be prudent in its portfolio quality management and expects FY22 to remain profitable.

       RCE Capital’s shares rose five sen to close at RM3.79 yesterday.

       In Q1’FY22, RCE Capital’s net profit grew 55% to RM35.39mil from RM22.84mil in Q1’FY21.

       This was primarily due to higher early settlement, net fee income as well as lower allowances for impairment loss on receivables.

       Its revenue rose 20.6% to RM78.04mil in Q1’FY22 from RM64.72mil in Q1’FY21 on higher early settlement and net fee income.