RHB Cap first quarter profit up 9.3% to $126.1mn

Improvement on net interest income, other operating income, income from Islamic banking business and lower allowance for impairment on loans drove the profit rise.

RHB Capital Bhd, the country’s fourth largest banking group by assets, posted a 9.26% rise in net profit to RM382.12mil ($126.11 million) for the first quarter ended March 31 compared with the corresponding quarter a year ago on higher net interest income and income from Islamic banking.

The company, which owns RHB Bank Bhd, said in an announcement to Bursa Malaysia on Wednesday that revenue for the quarter under review jumped 18% to RM1.65bil ($544.77 million) compared with the quarter a year ago.

“The improvement in performance was primarily due to higher net interest income, other operating income, income from Islamic banking business and lower allowance for impairment on loans, financing and other losses, partially offset by higher other operating expenses,” it said.

Net interest income increased by RM51.7mil ($17.07 million) or 8% to RM681.3mil ($224.96 million) on the back of a loan growth of 4.3% during the first three months of the financial year.

Other operating income was higher at RM266.5mil ($88 million) or an 8% increase for the quarter under review compared with a year ago largely due to higher service charges and fees, brokerage income and higher net gain on foreign exchange.

View the full story in The Malaysian Star.