RHB Bank records RM1.35b in profit for 1H21

by LYDIA NATHAN / pic credit: RHB 

RHB Bank Berhad saw its net profit rose 39% to RM1.35 billion for the first half ended June 30, 2021 from RM971 million recorded for the same period last year.

This proved the bank’s resilience and a strong foundation despite the Covid-19 pandemic.

The banking group said excluding net modification loss impact, net profit grew by 5.5% on higher net fund-based income.

Net-fund based income rose to RM2.8 billion, driven by proactive funding cost management which dropped 33.2% year-on-year (YoY) supported by current account and savings account (CASA) growth of 10.8%

Its revenue however, was lower at RM5.83 billion compared to RM6.47 billion for the corresponding period last year on the back of a drop in the overnight policy rate (OPR).

The group’s total assets increased by 4.1% from December 2020 to RM282.3 billion as at June 30, 2021.

Group managing director of RHB Banking group, Datuk Khairussaleh Ramli (picture) said the groups’ financial performance for the first half of the year demonstrated its resilience to record growth, and an ability to sustain strong capital and liquidity positions despite the challenging operating environment.

“We will stay the course by focusing on delivering customer centric solutions, accelerating digital payment and digital enablement domestically and regionally. This is reflected through continued innovations within our digital ecosystems, as well as the marked increase in our digital transactions from 76% in 2020 to 84% as at 30 June 2021,” he said.

The group declared an interim dividend of 15 sen per share, equivalent to a payout ratio of 45.1%.