RASHID HUSSAIN BERHAD (RHB) AND RHB CAPITAL BERHAD (RHB CAPITAL) REPORT PROFIT BEFORE TAX OF RM120.6 MILLION AND RM263.0 MILLION RESPECTIVELY FOR THE FIRST SIX MONTHS ENDED 31 DECEMBER 2002

• RHB Capital records higher profit before tax with lower loan loss provisions of RM317.8 million and lower overheads.
• RHB Bank Berhad ("RHB Bank") reports profit before tax of RM164.2 million
• RHB Sakura Merchant Bankers Berhad ("RHB Sakura") records marginally higher profit before tax of RM50.9 million.

20 February 2003, Kuala Lumpur-The RHB Group announced today its financial results for the first six months of its current financial year, showing stronger performance from RHB, the ultimate holding company, which increased its profit before tax to RM120.6 million from RM66.5 million recorded in the same period last year, following steady performance achieved by its core companies.

RHB Capital, meanwhile, also reported improved profit before tax of RM263.0 million, up from RM250.4 million recorded in the same period last year. The increase was mainly due to the lower loan loss provisions made in the period under review. Overall, loan loss provisioning of the RHB Group fell from RM331.1 million in the half year ended 31 December 2001 to RM317.8 million for the six months ended 31 December 2002.

RHB Bank recorded profit before tax of RM164.2 million for the six months to December 2002. The Bank's consumer business achieved loan growth of 7.28% for the same period with housing loans, which increased by RM643 million, being a key growth area.

The net non-performing loans ("NPL") ratio of RHB Bank as at 31 December 2002 fell to 8.8%, an improvement from 9.3% as at 30 June 2002 while the Risk Weighted Capital Adequacy Ratio ("RWCR") as at 31 December 2002 stood at 11.5% for the Bank and 12.8% on a consolidated basis, which includes the net assets of Bank Utama Malaysia Berhad ("Bank Utama") . Provision coverage on RHB Bank's NPLs improved to RM3,447 million or 61.0% of gross NPLs and 136.1% 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 six months ended 31 December 2002 is as follows:

Bank Utama, which became a wholly-owned subsidiary of RHB Bank at the end December 2002 will be contributing to the RHB Bank group profits in the second half of this financial year. Bank Utama recorded profit before tax of RM124.0 million for the 12 months ended 31 December 2002, a significant increase over RM19.1 million reported in the same period last year. Net interest income totalled RM214.7 million while non interest income totalled RM56.7 million. Bank Utama's RWCR stood at 15.25% as at 31 December 2002.

RHB Delta continued to maintain a strong performance during the reporting period especially in auto financing, and recorded a profit before tax of RM23.4 million for the first six months ended 31 December 2002. Loans and financing assets grew by 9.4% from RM1.49 billion as at 30 June 2002 to RM1.63 billion as at 31 December 2002. Asset quality remained healthy with a low net NPL ratio of 3.0% as at the end of December 2002.

RHB Sakura, the investment banking arm of the RHB Group, reported an increase in profit before tax to RM50.9 million for the first six months compared to RM48.8 million recorded for the same period last year. The increase was driven substantially by non-interest income, comprising advisory fees and income from dealing in and sale of debt securities which improved by 33% over last year.

Following the completion of the Group restructuring scheme in December 2002 and with the various business strategies and processes in place, the Group expects to improve on its business performance, bearing in mind the economic environment and challenges of the future.

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