RASHID HUSSAIN BERHAD ("RHB") AND RHB CAPITAL BERHAD ('RHB CAPITAL) REPORT PROFIT BEFORE TAX OF RM 60.0 MILLION AND RM 130.1 MILLION RESPECTIVELY FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2002
- RHB Capital records higher operating profit before loan loss provisions of RM 304.6 million on higher net interest income and lower overheads.
- RHB Bank Berhad ("RHB Bank") reports profit before tax of RM57.1 million.
- RHB Sakura Merchant Bankers Berhad ("RHB Sakura") records marginally higher profit before tax of RM 26.5 million.
18 November 2002, Kuala Lumpur-The RHB Group announced today its financial results for the first quarter of its current financial year, showing steadily improving performance from its core companies namely RHB Bank and RHB Sakura.
Net interest income of the RHB Capital Group increased from RM 347.4 million in the corresponding quarter a year ago to RM 350.9 million for the quarter ended 30 September 2002, although market conditions have been extremely competitive.
Both RHB and RHB Capital showed marked improvement in profit before tax for the three months ended 30 September 2002 compared to the immediately preceding quarter ended 30 June 2002. In particular, loan loss provisioning of the RHB Group fell from RM 236.9 million in the preceding quarter ended 30 June 2002 to RM 174.8 million in the current reporting quarter. The Group's net non-performing loans ("NPLs") ratio improved from 9.48% as at 30 June 2002 to 9.38% as at 30 September 2002, reflecting an improvement in loan recoveries and a lower rate of increase in new NPLs.
RHB Bank
RHB Bank recorded profit before tax of RM 57.1 million for the first quarter ended 30 September 2002. The Bank's consumer business achieved loan growth of 16.4% for the period ended 30 September 2002 (year on year basis) compared to a growth rate of 9.3% as at 30 September last year. The net NPL ratio as at 30 September 2002 was 9.1%, an improvement from 9.3% as at 30 June 2002 while its Risk Weighted Capital Adequacy Ratio also improved to 13.2 % as at 30 September 2002 compared to 12.7% a year ago and as at 30 June 2002. Provision coverage on NPLs was higher at 58.3 % and 131.4% including collateral, compared to 55.3% and 125.5% respectively as at 30 June 2002.
The summary of the income statement of RHB Bank for the three months ended 30 September 2002 is as follows:
|
|
Three months ended30 Sept 2002
RM' mil |
|
Net Interest Income |
280.8 |
|
Income from Skim Perbankan Islam |
22.2 |
|
Non-interest income |
89.3 |
|
Net income |
392.3 |
|
Overhead expenses |
(173.9) |
|
Operating profit before provisions |
218.4 |
|
Loan loss and provisions |
(161.3) |
|
Profit before taxation and zakat |
57.1 |
RHB Sakura
RHB Sakura reported a marginal increase in its profit before tax which totalled RM 26.5 million for the three months ended 30 September 2002 compared to the RM 26.2 million recorded for the same period in the previous year. Non interest income increased by 28.2% to RM 32.9 million as a result of higher advisory fees. This increase was, however, offset by a comparatively lower net interest income due to narrowing spreads and lower loan base.
Prospects For the Year
The Group has put in place various measures to improve balance sheet strength as well as to enhance asset quality in its subsidiaries. Various key business strategies and processes have been implemented in recent months and, barring unforeseen circumstances, are expected to result in an improvement in Group profitability in future.
Issued by RHB Public Affairs & Communications. For further information, please contact Celina May Ong at Tel:03-92802535.
|
