RASHID HUSSAIN BERHAD ("RHB") AND RHB CAPITAL BERHAD ("RHB CAPITAL") REPORT PROFIT BEFORE TAX OF RM 47.9 MILLION AND RM 325.5 MILLION RESPECTIVELY FOR THE NINE MONTHS ENDED 31 MARCH 2002

• RHB Bank Berhad ("RHB Bank") reports profit before tax of RM 239.1 million
• RHB Sakura Merchant Bankers Berhad ("RHB Sakura") reports profit before tax of RM 50.1 million.
• RHB Delta Finance Berhad ("RHB Delta") reports higher profit before tax of RM36.9 million

16 May 2002, Kuala Lumpur, Malaysia-The RHB Group today announced the Group's financial results for the third quarter ended 31 March 2002. RHB and RHB Capital reported profit before tax of RM 47.9 million and RM 325.5 million respectively for the nine months ended 31 March 2002 while RHB Bank and RHB Sakura reported profit before tax of RM 239.1 million and RM 50.1 million respectively for the same period. RHB Delta showed encouraging performance in reporting a higher profit before tax of RM 36.9 million.

The lower profit before tax reported by both RHB and RHB Capital during the period ended 31 March 2002 compared to the profit before tax in the corresponding period last year was due primarily to the higher provisions made for loan and financing loss by RHB Bank and RHB Sakura arising from the increase in the level of non-performing loans and adverse conditions in the debt capital markets during the reporting period.

RHB Sakura also saw a lower profit before tax of RM 50.1 million for the nine months ended 31 March 2002 compared to RM 76.7 million recorded in the same period last year. The drop in profit was largely due to the reduction of RM 14.7 million in non-interest income which was adversely affected by the drop in income from trading activities in the debt capital market following the downturn in the bond prices in the early part of 2002. Nevertheless, RHB Sakura continued to maintain a very strong Risk Weighted Capital Adequacy Ratio of 26.6% as at 31 March 2002.

RHB Bank, meanwhile, recorded a profit before tax of RM 239.1 million for the nine months ended 31 March 2002 with net interest income totalling RM 899.0 million while non-interest income stood at RM 276.8 million. The lower profit as compared to the corresponding period last year was mainly due to higher net loan loss provisions and interest suspended due to the higher level of non-performing loans.

RHB Bank continued to achieve steady growth in its consumer financing and Islamic Banking business with loans growing 13.3% and 12.9% to RM 9.0 billion to RM 2.1 billion respectively. The Risk Weighted Capital Adequacy Ratio improved to 13% as at 31 March 2002 compared to 12.7% a year ago.

The good underlying asset quality of RHB Delta resulted in an increase in profit before tax of the company to RM 36.9 million for the nine months ended 31 March 2002. The net non-performing loans ratio at 3.05% was well below the industry average while the Risk Weighted Capital Adequacy Ratio of RHB Delta was a healthy 12.6% as at 31 March 2002.

Looking ahead, the Group expect that the business strategies and processes which have been put in place, will bring about an improvement in results in future, especially with the gradual recovery currently underway in both the global and domestic economies.

Issued by RHB Public Affairs & Communications. For further information, please contact Celina May Ong at Tel:03-92802535.