Profit jumped due to higher early settlement, net fee income and lower allowances for impairment loss on receivables
by ANIS HAZIM / pic source: linkedin.cn/rcecapitalberhad
RCE Capital Bhd’s net profit jumped 55% to RM35.39 million for its first quarter ended June 30, 2021 (1Q21), compared to RM22.82 million in the same quarter last year, mainly due to higher early settlement, net fee income and lower allowances for impairment loss on receivables.
The financing solutions provider’s revenue climbed 20.6% to RM78.04 million from RM64.72 million last year, according to an exchange filing yesterday.
The group also recorded a higher pre-tax profit of RM47.3 million in the current quarter, an increase of RM1.5 million from RM45.8 million in the preceding quarter.
This was primarily led by higher revenue and lower directors’ remuneration and staff costs partially offset with higher allowances for impairment loss on receivables.
RCE’s earnings per share increased to RM9.81 from RM6.50 in the same quarter last year.
In order to remain competitive in the market, the group said it has launched new financing products to boost disbursements.
“Our transformation journey continues with more manual work processes being digitalised to enhance customer experience.
“We will closely monitor our portfolio quality in these uncertain times and expect to remain profitable for the financial year ending March 31, 2022 (FY22),” it said.
There were no profit forecasts prepared or profit guarantees made by the group.
It has also not declared or paid any dividend for FY21.
RCE shares rose one sen, or 0.37%, to RM2.73 at the close of trading yesterday, valuing the group at RM1.06 billion.
The group continues strict adherence to standard operating procedures put in place during the various Movement Control Orders and implementation of the National Recovery Plan.
Additionally, the company said various options and efforts were pursued to encourage all employees to be vaccinated as their safety remains a top priority.