by AFIQ AZIZ & AZALEA AZUAR / pic by TMR FILE
THE performance of banks controlled by the Employees Provident Fund (EPF) appears to be on the mend as the economy continues to recover in the third quarter (3Q).
RHB Bank Bhd’s net profit was marginally up to RM622.25 million in its 3Q ended Sept 30, 2020 (3Q20), against RM615.83 million in the same quarter last year partly due to higher allowances for credit losses and impairments.
Revenue for the quarter fell 9.8% YoY to RM3.01 billion from RM3.34 billion last year, its exchange filing yesterday noted.
On a quarter-on-quarter basis, RHB’s net profit rose 55.2% from RM400.77 million in 2Q20.
For the cumulative nine-month period, RHB’s net profit declined 14.5% YoY to RM1.59 billion from RM1.86 billion, while revenue was down by 5.8% YoY to RM9.51 billion.
This was mostly due to the group’s net modification loss of RM392.4 million arising from the moratorium given to our customers and higher allowances for credit losses.
RHB group MD Datuk Khairussaleh Ramli said RHB remains vigilant and continues to navigate through the impacts of the pandemic and support its provisions to tide through uncertainties ahead.
“While our liquidity and capital positions remain solid, it is important that we continue to strengthen these areas. We remain committed in providing targeted repayment assistance to our customers in weathering the effects of economic challenges brought about by the Covid-19 pandemic,” he said in a statement.
Meanwhile, Malaysia Building Society Bhd’s (MBSB) earnings rebounded in the 3Q with a profit of RM258.24 million after posting net losses in the last two quarters, partly attributed to a reduction in funding costs and modification loss.
Revenue improved to RM765.57 million compared to RM751.63 million in 3Q19, according to its exchange filing yesterday.
The bank posted a loss of RM12.5 million in the 2Q and a net loss of RM73.25 million in 1Q.
The group expects the market to remain soft until the end of the year, which will affect the company’s earnings.
MBSB president and CEO Datuk Seri Ahmad Zaini Othman said the bank is mindful that the cautious sentiment in the retail and corporate segments will remain as economic uncertainties persist despite posting improved results in the 3Q.
“These sentiments may improve as we are encouraged by the expectations of progress on the economic recovery, coupled with the implementation of Budget 2021 that shall provide a major relief to B40 (bottom 40% income group) and M40 segments.
“With the availability of vaccines next year, this will be a huge positive to the market sentiment. In the meantime, we will continue to support our customers who are experiencing financial setbacks due to the pandemic,” he said in a statement.