Earning season continues with another financial institution reporting its FY22 report, RHB Bank Berhad has announced its financial year ended December 2022 result with the group’s net profit rising 3.4% to RM2.70 billion against a higher turnover of RM13.27 billion, attributed mainly to higher net fund based income, absence of modification loss (ML) and lower ECL.
Net fund-based income improved by 8.6% to RM6,379.3 million driven by higher gross fund-based income, which grew 18.3% year-on-year supported by loan growth of 6.9%. NIM for the year was 2.24% compared with 2.20% recorded last year. Non-fund-based income declined by 10.6% to RM1,929.4 million, primarily from lower fees income, insurance underwriting surplus, and net trading and investment income. Operating expenses increased by 5.5% to RM3,716.8 million mainly from higher personnel and establishment costs. With positive JAWS, the cost-to-income ratio improved to 44.7%
compared with 45.2% last year.
ECL was reduced by 42.9% to RM421.2 million from lower ECL on loans and securities, and higher bad debts recovered. Correspondingly, the credit charge ratio improved to 0.15% compared with 0.29% recorded last year.
As for Q4 earnings against 2021, the group’s net profit of RM772.1 million is 22.3% higher than the RM631.2 million achieved in the corresponding quarter last year mainly due to higher net fund-based and non-fund-based income, absence of ML, and lower ECL.
The RHB Banking Group has also declared a second interim dividend of 25 sen per share, consisting of a cash payout of 20 sen per share and an electable portion under the Dividend Reinvestment Plan of 5 sen per share. Together with its first interim dividend of 15 sen per share, the total dividend for FY2022 amounts to 40 sen per share or 62.5% payout ratio, translating into a dividend yield of 6.9%.
