RHB’s 3Q21 net profit rises on higher income

The bank did not declare any dividend for the quarter despite revenue increases by 2.74% YoY 

by ANIS HAZIM / pic by TMR

RHB Bank Bhd’s earnings for the third quarter ended Sept 30, 2021 (3Q21), rose 2.14% year-on-year (YoY) to RM635.59 million or earnings per share of 15.64 sen on higher total income. 

Revenue for the quarter grew 2.74% YoY to RM3.05 billion but the bank did not declare any dividend for the quarter. 

For the nine months of 2021 (9M21), the banking group’s net profit increased 24.68% YoY to RM1.99 billion on higher net fund-based income and lower net modification loss. 

Its 9M21’s revenue, however, fell 5.94% YoY to RM8.86 billion. 

RHB stated that it will continue to extend financial relief to the affected customers who require assistance through its repayment assistance programme. 

“Assistance package of Urus and First will help affected borrowers to reduce their burden of making their financial commitments as they graduate towards normalisation of repayment on the back of improving economic and business activities,” the bank stated in a release yesterday. 

RHB expects the economic recovery to be uneven but feels the banking sector will remain resilient supported by strong capital and liquidity levels and the pro-active provisioning made since last year. 

Given the Malaysian Government Securities (MGS) yield across all maturities has been trending upwards, RHB expects the Overnight Policy Rate (OPR) to remain stable for the rest of the year.

“We will stay the course with our FIT22 initiatives to improve business performance through digitalisation and agile way of working, continued focus on improving customer experience and enhancing enterprise risk management,” it added. 

RHB’s shares rose two sen to RM5.28 yesterday, valuing the group at RM21.92 billion.