RHB Bank Berhad recorded a net profit of RM2.6 billion for the financial year ended 31 December 2021. Total income increased to RM7.78 billion.
The Group’s net profit for the 4QFY2021 increased from RM438.6 million (4QFY2020) to RM631.2 million mainly due to lower ECL (expected credit loss). For the 12 months ended, the group’s profit before tax surged to RM3.5 billion from RM2.6 billion recorded a year ago.
Group’s gross loans and financing grew 6.7% year-on-year to RM198.5 billion, mainly supported by growth in mortgage, auto finance, SME, Commercial, and Singapore. Domestic loans and financing grew 4.8% year on year.
Gross impaired loans were RM3 billion with gross impaired loans ratio of 1.49%, compared with RM2.6 billion and 1.32% respectively as of September 2021, and RM3.2 billion and 1.71% respectively as of December 2020. The loan loss coverage ratio for the Group, excluding regulatory reserves, remained well above 100% at 122.4% compared with 147.9% in September 2021.
Customer deposits increased 7.5% year-on-year to RM218.7 billion, predominantly attributed to fixed and money market time deposits growth of 9.0% and CASA of 4.5%. CASA composition stood at 30.0%. The liquidity coverage ratio (LCR) remained healthy at 155.7%.
Total assets for the Group increased 6.8% from December 2020 to RM289.5 billion. Net assets per share were RM6.76, with shareholders’ equity at RM28.0 billion as of end-December 2021.
RHB’s capital position remains solid with its Common Equity Tier-1 (CET-1) and the total capital ratio stood at 17.2% and 19.8% respectively.
The Board proposed a final dividend of 25 sen per share (15 sen cash and 10 sen subject to DRP). For FY2021, the total dividend amounts to 40 sen per share, or 62.9% payout.
“The Group had demonstrated resilience and the ability to sustain growth, as well as providing the much-needed support to our customers amid continued uncertainty in the operating environment. Nevertheless, we remain prudent in managing our asset quality while continuing to enhance our governance and risk management practices. The Group’s capital and liquidity positions for FY2021 remain strong,” Mohd Rashid Mohamad, Officer-In-Charge/Principal Officer of RHB Banking Group said.
