RASHID HUSSAIN BERHAD AND RHB CAPITAL BERHAD RECORD STRONGER PROFIT BEFORE TAX OF RM121.0 MILLION AND RM380.9 MILLION RESPECTIVELY FOR NINE MONTHS ENDED 31 MARCH 2003

• RHB Bank Berhad (RHB Bank) records higher profit before tax of RM255.9 million
• RHB Sakura Merchant Bankers Berhad (RHB Sakura) reports improved profit before tax of RM67.4 million
• RHB Delta Finance Berhad (RHB Delta) contributes profit before tax of RM35.1 million

Kuala Lumpur, May 30, 2003-The RHB Group today announced its financial results for the nine months ended 31 March 2003 with both Rashid Hussain Berhad ("RHB") and RHB Capital Berhad ("RHB Capital") recording higher profit before tax of RM 121.0 million and RM 380.9 million respectively for the financial period under review.

Profit before tax for RHB increased significantly by 153 percent compared to the profit before tax of RM 47.9 million reported in the same period last year.

Operating profit before loan and financing loss and provision increased by RM2.9 million to RM585.1 million for the nine months ended 31 March 2003 compared to RM582.2 million for the same period last year.

RHB Capital recorded an operating profit of RM 845.0 million for the nine months ended 31 March 2003. After provisions for loan loss, RHB Capital recorded profit before tax of RM 380.9 million, an increase of 17 percent from RM 325.5 million recorded in the corresponding period last year. Net profit also increased to RM153.3 million from the RM103.1 million recorded in the same period last year.

Both RHB Capital and RHB attributed the increase in profit mainly to lower overheads at RHB level, lower loan loss provisioning and higher income from Skim Perbankan Islam given the steady growth in Islamic banking activities and contribution from the Islamic banking business of Bank Utama.

RHB Bank registered an improved profit after tax of RM176.1 million for the nine months ended March 31 2003 compared with RM165.1 million in the same period the previous year.

This is on the back of a slight decrease in operating revenue to RM1,183.8 million from RM1,229.3 million previously. Profit before tax increased to RM255.9 million from RM239.1 million previously. This had resulted in an increase of 3.5 sen in basic earnings per share from 3.22 sen previously.

RHB Bank attributed the better performance mainly to lower loan loss provision and higher non-interest income for the nine months by RM83.7 million and RM36.4 million respectively.

Consumer and credit card loans recorded year on year growth of 12.7 percent and 35.4 percent respectively. Total assets grew year on year over 5.1 percent to RM52.2 billion and Risk Weighted Capital Adequacy Ratio saw a reduction to 11.4 percent as at March 31, 2003. With the vesting of the net assets of Bank Utama Malaysia Berhad into RHB Bank on May 1, 2003, the Risk Weighted Capital Adequacy Ratio of the Bank now stands at 12.3 percent.

RHB Delta Finance Berhad continued to record steady loan growth for the financial period under review. As at 31 March 2003, total loans and advances stood at RM1.6 billion, representing a loan growth of 14% over its last financial year-end position of RM1.4 billion. Profit before tax for the nine months ended 31 March 2003 totalled RM35.1 million.

RHB Leasing continued to register growth in leasing and hire purchase financing to small and medium enterprises. As at 31 March 2003, total leasing and hire purchase receivables recorded stood at RM822.0 million, which represented a growth of 23 percent over its last financial year-end position of RM666.1 million. Profit before tax for the nine months just ended RM29.8 million, a growth of 2.6 percent over RM29.1 million recorded in the same period last year.

Despite weak equity market conditions, the Bank's profit before tax for the nine months to 31 March 2003 increased to RM67.4 million from RM50.2 million for the corresponding period last year.

The increase was largely due to the RM38.6 million increase in the non-interest income comprising mainly of advisory fees and income from dealing securities. This increase was, however, offset by a RM4.8 million increase in the overhead expenses and a RM14.1 million decrease in the net interest income.

Comments by RHB Executive Chairman Dato Sri Sulaiman Abdul Rahman Taib
"The RHB Group has in place today a strong institutional shareholding and firm foundation for more sustained profitability and future growth. In facing existing challenges of market and the economic environment, we are confident that the measures being implemented will see the Group emerge stronger as a leading integrated financial services group in Malaysia.

Looking ahead, the challenge for the RHB Group would be to capitalise on core strengths and optimise its resources and expertise to meet the demands of an increasingly competitive market and a more sophisticated customer base. A key focus will be to intensify efforts and build greater business synergy via products and services through effective cross selling across all business entities within the RHB Group. We have also identified measures for increased cost efficiencies and savings.

Our customers continue to be our prime focus, and our business growth strategies will be precise, concerted and effective to create greater value for our customers, employees and shareholders. The RHB Group stays committed to growing its leadership role and setting greater standards of excellence and best practice in the industry."

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