RHB Bank Berhad announced today its financial results for the first quarter ended 31 March 2023 with the group’s net profit rising 30.8% year-on-year to RM761.7 million attributed mainly to higher non-fund-based income and lower Expected Credit Loss. Revenue for the quarter reached RM3.91 billion compared to RM2.8 billion in the preceding year’s quarter.
The group’s net fund-based income declined by 6.6% to RM1,373.7 million on the back of higher funding costs, attributed mainly to fixed deposit growth of 9.9% year-on-year. NIM for the quarter was 1.90% compared with 2.16% recorded in the corresponding period last year.
Non-fund based income increased by 39.7% to RM534.0 million, primarily from the higher net gain on forex and derivatives, and higher net trading and investment income. Operating expenses increased by 3.1% to RM856.5 million mainly from higher establishment, marketing, administration, and general costs. The cost-to-income ratio increased marginally to 44.9% compared with 44.8% a year ago.
ECL reduced by 70.1% to RM46.0 million from lower ECL on loans and net writeback for ECL on securities. Correspondingly, the annualised credit charge ratio improved to 0.10% compared with 0.29% for the same period last year
The Group posted higher net profit for the first quarter ended 31 March 2023 compared with the same period last year, delivering resilient performance amid continued challenges in the operating environment. It remains focused on strengthening the balance sheet and will continue to uphold strong capital and liquidity positions.
