KUALA LUMPUR: RHB CAPITAL BHD [] net profit for the second quarter ended June 30, 2011 rose 16.4% to RM394.62 million from RM339.03 million a year earlier, due mainly to higher other operating income and net interest income, partially offset by higher allowance for loan impairment and higher other operating expenses.
It said on Wednesday, Aug 24 that revenue for the quarter rose 23.5% to RM1.77 billion from RM1.44 billion in 2010. Earnings per share increased to 18.20 sen from 15.70 sen in 2010, while net assets per share was RM4.88.
RHB Capital declared a gross interim dividend of eight sen per share, totaling RM131.5 million.
For the six months ended June 30, RHB Capital's net profit rose 12.8% to RM776.74 million from RM688.76 million in 2010, on the back of a 20.8% increase in revenue to RM3.42 billion from RM2.84 billion.
Reviewing its performance for the six months ended June 30, RHB Capital said the earnings growth was achieved on the back of strong interest income growth and other operating income.
The group continues to benefit from a disciplined and focused execution of its strategies and the first half results continue to demonstrate good progress in expanding into targeted business and product segments, said the bank.
It said asset quality continued to improve, reflecting its disciplined approach in risk management and collection processes.
Allowance for loan impairment increased by 15.3% to RM202.7 million due mainly to higher collective allowances of 1.5% set aside for the loan volume growth, it said.
Gross loans grew by RM7.6 billion or 9.1% to reach RM91.3 billion as at June 30 June, it said.
The loans growth was broad-based, comprising mainly public sector lending, purchase of securities, purchase of transport vehicles and purchase of residential property, it said.
'Continuing its growth trajectory from previous year, the group's domestic loan growth of 8.9% continues to outpace that of the industry of 7.3% for the first half of 2011.
'Domestic loans market share further improved to 9.2% from 9.1% as at Dec 31, 2010,' it said.
RHB Capital said absolute gross impaired loans declined by 2.9% to RM3.6 billion, and gross impaired loans ratio improved to 3.90% from 4.39% in December 2010.
Annualised new impaired loans formation ratio reduced to 0.84% from 1.03% a year ago, it said.
Meanwhile, customers' deposits increased by 9% or RM8.5 billion to reach RM102.9 billion as at June 30, 2011, it said.
The deposits growth momentum surpassed that of the industry of 6.2%.
RHB Capital said its overall domestic deposits market share improved to 8.1% from 7.9% as at Dec 31, 2010, adding that its loans-to-deposits ratio stood at 88.8%.
RHB Capital said its total assets expanded by 8.8% to RM140.7 billion, driven mainly by the increases in loans, investment assets and statutory deposits.
Meanwhile, shareholders' equity expanded further to RM10.7 billion, it said.
On its prospects, RHB Bank chairman Tan Sri Azlan Zainol said the outlook for the Malaysian banking sector remains positive, supported by the underlying strengths of the domestic economy and the roll-out of the large-scale infrastructure projects under the Economic Transformation Programme.
'In spite of what is expected to be a more challenging second half, we remain cautiously confident that the Malaysian economy will continue to be supportive of business growth.
'RHB Bank aims to maintain its growth momentum for the second half of the year,' he said.
It said on Wednesday, Aug 24 that revenue for the quarter rose 23.5% to RM1.77 billion from RM1.44 billion in 2010. Earnings per share increased to 18.20 sen from 15.70 sen in 2010, while net assets per share was RM4.88.
RHB Capital declared a gross interim dividend of eight sen per share, totaling RM131.5 million.
For the six months ended June 30, RHB Capital's net profit rose 12.8% to RM776.74 million from RM688.76 million in 2010, on the back of a 20.8% increase in revenue to RM3.42 billion from RM2.84 billion.
Reviewing its performance for the six months ended June 30, RHB Capital said the earnings growth was achieved on the back of strong interest income growth and other operating income.
The group continues to benefit from a disciplined and focused execution of its strategies and the first half results continue to demonstrate good progress in expanding into targeted business and product segments, said the bank.
It said asset quality continued to improve, reflecting its disciplined approach in risk management and collection processes.
Allowance for loan impairment increased by 15.3% to RM202.7 million due mainly to higher collective allowances of 1.5% set aside for the loan volume growth, it said.
Gross loans grew by RM7.6 billion or 9.1% to reach RM91.3 billion as at June 30 June, it said.
The loans growth was broad-based, comprising mainly public sector lending, purchase of securities, purchase of transport vehicles and purchase of residential property, it said.
'Continuing its growth trajectory from previous year, the group's domestic loan growth of 8.9% continues to outpace that of the industry of 7.3% for the first half of 2011.
'Domestic loans market share further improved to 9.2% from 9.1% as at Dec 31, 2010,' it said.
RHB Capital said absolute gross impaired loans declined by 2.9% to RM3.6 billion, and gross impaired loans ratio improved to 3.90% from 4.39% in December 2010.
Annualised new impaired loans formation ratio reduced to 0.84% from 1.03% a year ago, it said.
Meanwhile, customers' deposits increased by 9% or RM8.5 billion to reach RM102.9 billion as at June 30, 2011, it said.
The deposits growth momentum surpassed that of the industry of 6.2%.
RHB Capital said its overall domestic deposits market share improved to 8.1% from 7.9% as at Dec 31, 2010, adding that its loans-to-deposits ratio stood at 88.8%.
RHB Capital said its total assets expanded by 8.8% to RM140.7 billion, driven mainly by the increases in loans, investment assets and statutory deposits.
Meanwhile, shareholders' equity expanded further to RM10.7 billion, it said.
On its prospects, RHB Bank chairman Tan Sri Azlan Zainol said the outlook for the Malaysian banking sector remains positive, supported by the underlying strengths of the domestic economy and the roll-out of the large-scale infrastructure projects under the Economic Transformation Programme.
'In spite of what is expected to be a more challenging second half, we remain cautiously confident that the Malaysian economy will continue to be supportive of business growth.
'RHB Bank aims to maintain its growth momentum for the second half of the year,' he said.
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