Latest news with #RM1.49bil
The Star
6 days ago
- Business
- The Star
RHB sustains growth
PETALING JAYA: RHB Bank Bhd (RHB) is keeping a cautious stance amid evolving macroeconomic conditions, shaped by interest rate movements and global trade dynamics, although it expects the recent reduction in the statutory reserve requirement by Bank Negara to provide funding flexibility in the quarters ahead. In addition, the lender is projecting for the banking sector to maintain its strong capital and liquidity positions. RHB's group managing director and group chief executive Datuk Mohd Rashid Mohamad said the bank's new three-year strategic roadmap, named PROGRESS27, has set a clear course for the lender toward becoming the best in service, enhancing profitability and reinforcing its purpose-driven commitment. 'With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders,' added Mohd Rashid. Releasing its results for the first quarter ended March 31 (1Q25) yesterday, RHB saw net profit inch up by 2.7% year-on-year (y-o-y) to RM750mil, despite a marginal dip in revenue to RM4.39bil. The 1Q25 performance translates to an earnings per share of 17.2 sen. The group attributed the growth in net profit primarily to higher net funding income and improved credit cost management, which was offset by lower non-fund based income, higher tax expense, higher operating expenses and higher share of loss in associates. At the same time, it reported that total income stood at RM2bil, a marginal dip of 1.9% y-o-y mainly from contraction in non-fund based income due to lower net gain on foreign exchange (forex) and derivatives, as well as net trading and investment income. RHB said it has maintained operational stability, supported by prudent cost management, continued strength in capital and liquidity positions, reflected by the containment of cost growth at 1.2%, while cost-to-income ratio stood at 47.4% from 45.9% a year ago, reflecting the marginal contraction in income. Commenting on the results, Mohd Rashid remarked that the sustaining of the bank's earnings growth momentum in 1Q25 was underpinned by solid fundamentals and early traction from its PROGRESS27 strategy. 'Our cost optimisation efforts are beginning to deliver results, enabling us to contain expenses while driving growth in key segments. 'At the same time, our continued focus on asset quality has led to a reduction in credit cost. We remained disciplined in execution, strengthening our core capabilities, driving operational excellence, and unlocking new growth opportunities.' Net fund based income increased by 7.3% to RM1.49bil y-o-y on the back of gross loans and financing growth of 6.3%, while non-fund based income declined by 20.2% to RM561mil from a year ago, driven by lower net trading and investment income, lower net gain on forex and derivatives as well as lower income from its insurance business, partly offset by higher fee income. Net allowance for credit losses was lower at RM105.8mil, primarily due to lower credit losses on loans and financing. Meanwhile, total assets of the group increased by 0.7% from December 2024 to RM352.5bil as at March 31, 2025, with net assets per share at RM7.39, and shareholders' equity at RM32.2bil. Concurrently, the group's gross loans and financing grew by 6.3% y-o-y to RM239.2bil, mainly supported by growth in mortgage, corporate, commercial and automotive finance. RHB's gross impaired loans (GIL) increased marginally to RM3.6bil, with a GIL ratio of 1.50%, from 1.47%, or RM3.5bil in December 2024. The group reported a domestic GIL ratio of 1.22%, which is lower than the banking industry's GIL ratio of 1.42%. Loan loss coverage ratio for the group, including regulatory reserves, improved to 115.7%, while it stands at 76.9% if regulatory reserves are excluded. Customer deposits increased by 2.3% to RM248.5bil, primarily due to growth in money market time deposits by 31.3%, offset by a decrease in current accounts and saving accounts (Casa) by 1.1% and fixed deposits by 0.9%. Casa composition stood at 28.0% as at March 31, 2025, and liquidity coverage ratio remained sound at 134.6%. Compared to the previous quarter ended December 2024, RHB saw net profit decrease by 10.1% from RM834.5mil, which it attributed mainly to lower non-fund based income and higher allowances for credit losses. These were partly offset by lower operating expenses, higher net funding income, lower impairment on other non-financial assets and lower share of loss in associates during 1Q25. RHB did not declare any dividends for the quarter.
The Star
06-05-2025
- Business
- The Star
Lotte Chemical Titan posts lower 1Q losses
PETALING JAYA: Lotte Chemical Titan Holding Bhd saw its operational losses for its first quarter of its financial year 2025 (FY25) reduce year-on-year (y-o-y) by 32% to RM127.95mil. Net losses narrowed by 29% y-o-y to RM134.82mil although revenue saw further declines by 22% y-o-y to RM1.49bil. The company said the rise in its bottom line was due to slight improvement of margins, lower depreciation charges and profit contribution from its associate company, Lotte Chemical USA Corp. 'We foresee continued volatility in the global business environment in the near term. Geopolitical factors, including the Russia-Ukraine War, tension in the Middle East, and the impact of President Trump's policies are expected to influence global trade dynamics and crude oil prices,' president and chief executive officer Jang Seon Pyo said in a statement. He noted the sluggish economic performance and oversupply of petrochemical products in China continued to disrupt the supply-demand balance equation. Despite these headwinds, the company will remain focused on its markets in Malaysia, Indonesia, and the South-East Asian region. On a quarter-on-quarter basis, it recorded a lower loss before interest, taxes, depreciation, and amortisation of 92.6% compared with the preceding quarter. This was due to the absence of impairment losses on property, plant, equipment, right-of-use assets and derecognition of foreign exchange gains on dissolution of a subsidiary recorded in the previous quarter. It said the Lotte Chemical Indonesia new ethylene project in Merak, Indonesia is on track for completion this year. Trading ideas: Gamuda, Maybank, Vizione, Majuperak, TAS, West River, Hi Mobility, Evergreen, HeiTech Padu, Genetec, Tan Chong, Ekovest, MR DIY, Frontken
