KUALA LUMPUR, Nov 20 – RHB Capital Bhd’s pre-tax profit for the third quarter ended September 30, 2014 fell to RM714.93 million, from RM739.76 million in the same period last year. Revenue, however, surged to RM2.72 billion from RM2.46 billion. In a filing to Bursa Malaysia today, the bank attributed the 3.3% weaker pre-tax profit to lower impairment write back on other assets, higher impairment allowances for loans and financing and higher other operating expenses.
“This was, however, partially offset by higher other operating income, higher income from Islamic banking business and higher net interest income,” it said. RHB Capital posted a 17% higher net profit of RM1.6 billion for the first nine months of 2014, over the corresponding period of the previous year, while net interest income rose 3.2% to RM2.5 billion underpinned by a 9.5% increase in conventional gross loans.
The bank said other operating income increased by 3.2 % year-on-year to RM1.5 billion, primarily attributable to higher fee income and insurance underwriting surplus. On prospects, RHB Capital said the Malaysian banking sector would continue its growth trend for the rest of the year, supported by broadly resilient private investments and the various economic programmes. “Barring unforeseen circumstances, the group’s 2014 performance will be better than 2013,” it said.