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RHB Bank 2017 Profit Rises 16 Pct To RM1.95 Bln
Last update: 27/02/2018

KUALA LUMPUR, Feb 27 (Bernama) --†RHB Bank Bhd's net profit rose 16 per cent to RM1.95 billion for the†financial year ended†Dec 31, 2017, largely driven by higher net funding income and†lower loan loss impairment compared with RM1.68 billion the year before.

Revenue edged up to RM10.57 billion from RM10.56 billion†in 2016, RHB announced today.

For the fourth quarter, net profit jumped to RM462.1 million compared with RM256.71 million in†the corresponding quarter in 2016, while revenue stood at RM2.7 billion versus RM2.55 billion before.

For the year, net fund based income increased by 5.4 per cent†to RM4.55 billion year-on-year.

"This was mainly underpinned by growth in loans and prudent funding cost management, particularly reflected in the healthy 18.8 per cent†CASA (Current Account,†Saving Account)†growth and replenishment of new sub-debts issuances at lower rates, as well as redemption of a portion of senior notes during the year," RHB†said in a filing to Bursa Malaysia here.

The efforts brought about a stable Net Interest Margin (NIM) performance at 2.18 per cent†for the full year.†

Allowances for impairment on loans and financing declined by 28.3 per cent†to RM426.8 million, primarily due to pre-emptive provisions for legacy steel-related exposure provided in the previous year, which led to improvement in credit charge for the full year to 0.27 per cent†compared with 0.39 per cent last year, said RHB.

Overall, impairment losses on other assets were†lower by 19.6 per cent, even after the Group took a more prudent approach for impairment of corporate bonds in Singapore.

The Group's gross loans and financing grew by 3.7 per cent year-on-year to RM160.1 billion.

Domestic loans and financing grew 5.2 per cent year-on-year†with the Group's domestic loan market share up to 9.1 per cent†by end-2017 from nine†per cent†in 2016.

"The increase came mainly from mortgages and SME (small and medium enterprises) which grew 13.2 per cent†and 8.7 per cent, respectively, negated by a decline in corporate loans which is in line with the Group's strategy to rebalance its loan composition," said RHB.

Customer deposits remained stable at RM166.2 billion as the Group consciously released more expensive deposits. The continued strong growth of total CASA at 18.8 per cent†over the year helped improve CASA composition to 30.4 per cent†from 25.6 per cent†a year ago, it said.

As for the outlook, RHB said the†Group sees positive momentum across its core businesses.

"This, and a robust balance sheet which includes a comfortable loan loss coverage, capital and liquidity levels, will place the Group in a good position to drive value creation from key businesses and segments," said RHB.



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Source: Bank Negara Malaysia

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