Newsroom
22 Aug 2017
The Edge : RCE Capital 1Q net profit up 19.4% to RM20.9m on higher net interest income
 
RCE Capital 1Q net profit up 19.4% to RM20.9m on higher net interest income
Billy Toh / theedgemarkets.com
August 22, 2017 19:35 pm MY
 

KUALA LUMPUR (Aug 22): RCE Capital Bhd's first quarter net profit grew 19.4% to RM20.93 million from RM17.53 million a year earlier, on higher net interest income as well as relatively stable loan impairment.

Earnings per share for the quarter ended June 30, 2017 rose to 6.18 sen from 5.40 sen previously, the group said in a bourse filing today.

Quarterly revenue increased 9.9% to RM57.10 million from RM51.94 million in the previous corresponding quarter.

RCE said its consumer financing segment's pre-tax profit rose 17.6% to RM26.1 million from RM22.2 million.

The investment holding, management services and others segment also saw a slightly higher pre-tax profit of RM1.3 million as compared to RM1.2 million previously, due to lower interest expenses.

Moving forward, the group said its focus is on streamlining its operational, channel management and risk management infrastructure.

"Prudent credit criteria and collection systems are further refined to maintain quality receivables portfolio. Meanwhile, technological enhancement and process simplification initiatives to elevate operational efficiencies continue," the group said.

RCE expects to report modest growth in its consumer financing segment as it continues to embrace industry's best practices.

RCE's share price slipped by 1.2% to close at RM1.65 with about 468,700 shares traded, giving a market capitalisation of RM562.6 million.