11 Nov 2020
The Edge : RCE's 2Q net profit higher at RM33 mil
RCE's 2Q net profit higher at RM33 mil

KUALA LUMPUR (Nov 10): RCE Capital Bhd’s net profit for the second quarter ended Sept 30, 2020 increased to RM33.0 million compared with RM27.2 million in the corresponding quarter.

The profit was primarily led by the increase in early settlement income arising from higher refinancing activities by customers.

RCE's revenue rose to RM75.9 million from RM70.2 million in the corresponding quarter, the group said in a filing with Bursa Malaysia.

For the six months ended Sept 30, 2020, the group registered a higher revenue of RM140.6 million, representing an increase of 2.6% compared to the previous financial period of RM137.1 million.

Correspondingly, RCE recorded an increase of 6.7% in its profit before tax from RM70.1 million in the corresponding period to RM74.7 million in the current financial period.

As a result, the group's post-tax profit of RM55.8 million for the financial period ended Sept 30, 2020 was 8.9% higher compared to RM51.3 million in the corresponding period.

The group said it is optimistic on gaining profit for the financial year ending March 31, 2021 as it continues to calibrate business strategy and operations with ongoing sales campaigns, close monitoring of collections and active cost management with customers and employees' safety in mind.

“RCE is now better prepared to face uncertainties arising from the Covid-19 pandemic, notwithstanding the reintroduction of the Conditional Movement Control Order recently to ensure sustainability of its core business,” the group said.

It also declared a first interim single-tier dividend of six sen per ordinary share, estimated at RM21.45 million of the financial year ending March 31, 2021 and to be paid on Dec 7, 2020.