RHB Bank posts higher profits for fiscal 2021 | Money
KUALA LUMPUR, February 28 – RHB Bank Bhd recorded a net profit of RM2.62 billion in its financial year ended December 31, 2021 (FY2021), up about 29% from 2.03 billion of RM in 2020, primarily due to higher net funding. based on income, a decrease in provisions for credit losses and a decrease in net modifying loss.
However, the profits were partly offset by lower non-fund income and higher operating expenses, the bank said in a filing with Bursa Malaysia today.
For fiscal year 2021, RHB Bank recorded revenue of RM11.75 billion from RM12.50 billion in the previous year, while earnings per share increased to 64.65 sen from 50.69 sen previously .
RHB Bank’s fund-based net income improved to RM5.87 billion thanks to proactive management of funding costs, which fell 24.1% year-on-year (in year-on-year) thanks to a 4.5% growth in the Current Account Savings Account (CASA).
Net interest margin for the year was 2.14% compared to 2.06% last year.
Meanwhile, non-fund income declined to RM2.16 billion, mainly due to lower brokerage income and net trading and investment income, offset by excess insurance underwriting. higher and growth in fee income from capital market, asset management and commercial banking.
Mohd Rashid Mohamad, Head and Senior Director of RHB Banking Group, said the group remains cautious in managing the quality of its assets while continuing to improve its governance and risk management practices.
He added that the group’s capital and liquidity positions for the 2021 financial year remained strong and that it had also stepped up its efforts to promote economic recovery, including taking a holistic approach to help customers affected by the protracted pandemic. of Covid-19 through various forms of financial assistance.
“As of January 31, 2022, our repayment assistance program has already benefited approximately 85,000 RHB customers, of which more than 6,300 are small and medium-sized business (SME) customers, with total ongoing repayment assistance of 21 RM.3 billion, or 12 percent. cent of our group’s domestic lending and financing,” he said in a statement today.
The group said its expected credit losses (ECLs) fell to RM737.2 million due to lower ECLs on loans and higher bad debt recovered during the year and, by Consequently, the credit burden ratio improved to 0.29% from 0.58% the previous year.
For FY 2021, the group’s gross loans and financings increased by 6.7% year-on-year to RM198.5 billion, mainly supported by growth in mortgages, auto finance, small and medium enterprises , commercial enterprises and Singapore, while domestic lending and financing grew 4.8% year-on-year.
Customer deposits also increased by 7.5% year-on-year to RM218.7 billion, mainly driven by fixed term and money market deposit growth of 9% and CASA of 4.5%. %.
RHB Bank has proposed a final dividend of 25 sen per share, consisting of 15 sen in cash and an elective portion of 10 sen subject to the dividend reinvestment plan.
For fiscal year 2021, the total dividend amounted to 40 sen per share, or 62.9% payout.
RHB Bank’s total assets increased by 6.8% from December 2020 to RM289.5 billion as of December 31, 2021. Net assets per share were RM6.76, with shareholders’ equity of RM28.0 billion as of end-December 2021. — Bernama