RHB Bank Berhad reported its full year and fourth quarter financial results for the year ending 31 December 2023 with the group’s net profit for the FY2023 rising 4.8% YoY to RM2.81 billion, which it said was mainly due to higher non-fund based income and lower ECL.
Total revenue for the year increased from RM13 billion to RM16.5 billion marking another significant growth for the banking group.
Total income was RM7.77 billion Net fund based income was RM5.45 billion on the back of higher funding costs, mainly due
to fixed deposit growth of 14.3% YoY. Net interest margin (“NIM”) for the year was 1.82%. The Group said it has also been proactively managing funding costs through active liability management. Taking this initiative into account, the effective NIM was 1.93%.. Non-fund based income increased 30.3% YoY to RM2.32 billion, primarily from higher net gain on forex and derivatives, net trading and investment income and fee income.
As for the fourth Quarter FY2023 earnings, the group’s net profit was RM585.9 million mainly due to lower net fund based
income and higher ECL. This was on the back of revenue of RM4.3 billion versus RM3.9 billion the bank recorded in Q4FY2022.
The Group declared a second interim dividend of 25 sen per share, consisting a cash payout of 15 sen per share and an electable portion under a Dividend Reinvestment Plan of 10 sen per share. Together with the first interim dividend, the full-year dividend amounts to 40 sen per share, equivalent to a payout ratio of 61.1% and a dividend yield of 7.3% for FY2023.
Commenting on the performance, Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer said for the banking industry, demand for credit is expected to improve this year, led by stronger credit demand from the business segment. Overall, the sector is anticipated to remain resilient, bolstered by robust capital and liquidity positions and conducive monetary policy.
We are cognisant of the external headwinds and the impact on the pace of economic recovery in the markets we operate. Our fundamentals remained strong, as reflected by our strong capital and liquidity positions. We are now in the final year of our “Together We Progress 2024” corporate strategy. While we delivered a resilient financial performance for FY2023, we will continue to refine our focus and approach, and double down on innovation and cost management to improve
business performance
