RHB Bank Reports Robust 9-Month Performance with 16.4% YoY Rise in Net Profit
RHB Bank Berhad reported a 16.4% YoY increase in net profit to RM2.22 billion for the nine months ending September 2023. The growth was attributed to higher non-fund based income and lower Expected Credit Loss (ECL).
Total income reached RM5.75 billion, with net fund based income at RM4.11 billion and non-fund based income at RM1.64 billion.
Operating expenses rose 3.3% to RM2.71 billion, resulting in a cost-to-income ratio of 47.1%. ECL reduced 81.4% to RM71.4 million, primarily due to writeback of management overlay. The bank’s gross loans and financing grew 3.4% year-to-date to RM219.4 billion.
Malaysia’s economy is expected to grow for the rest of the year, albeit at a moderate pace, supported by continued resilience in both private and public investments. The initiatives under the 2024 Budget and the Economy MADANI framework, which include key plans such as the National Energy Transition Roadmap, the New Industrial Master Plan 2030, and the Mid-Term Review of the 12th Malaysia Plan, are expected to drive economic growth.
RHB Bank on track on sustainability
On the banking sector front, the industry is projected to remain sound, with monetary policy continuing to be supportive of economic growth. “Despite the headwinds, the Group continued to uphold its strong financial performance in the third quarter and consequently for the nine months ending September 2023 as it navigated the challenging operating environment,” says Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer of RHB Banking Group.
“We are on track to achieving our Sustainable Financial Services target under our five-year Sustainability Strategy and Roadmap. On a cumulative basis, we have attained over RM19 billion, Page 3 of 7 equivalent to 99% of our RM20 billion target. We will be revising our sustainable financial services commitment upwards to ensure we continue to expand and maximise our impact in supporting our customers in their sustainability journey.
“Our Group Climate Action Programme is progressing well and we are on track to developing our Pathway to Net Zero by 2050. We will stay the course in executing the final phases of our ‘Together We Progress 2024’ (‘TWP24’) corporate strategy, focussing on quality growth, service excellence, and improved efficiency,” he says.