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09 Nov 2017
The Sun : RCE Capital Q2 net profit up 18.5%
 
RCE Capital Q2 net profit up 18.5%
Posted on 9 November 2017 - 05:31pm
Last updated on 9 November 2017 - 07:11pm
sunbiz@thesundaily.com 

PETALING JAYA: RCE Capital Bhd, a company involved in general loan financing, saw its second quarter ended Sept 30, 2017 net profit jump 18.5% driven by higher net interest income and lower operating expenses.

The higher earnings were partially offset by higher staff costs arising from share options granted under employee share scheme.

RCE made a net profit of RM21.8 million for the quarter ended Sept 30, 2017, compared with RM18.4 million for the same quarter in 2016.

This was possible on a 10.6% increase in revenue to RM61.6 million, compared with RM56.2 million for the quarter ended Sept 30, 2016.

The company which has throughout the decade worked closely with co-operatives and foundations to provide personal financing to their members, who are mainly government employees, said credit quality remains the key consideration for its loans growth.

RCE said assessment on the robustness of the credit scoring model is periodically revisited and consumer financing products are continuously enhanced to meet market expectations and to ensure the expected yields are justified.

"Emphasis is also placed on the company's distribution channels where their performance are tracked closely. Simultaneously, the company continues with its technological enhancement and process simplification initiatives to further support operational efficiencies," it said in a filing with Bursa Malaysia.

For the six month period, RCE Capital made a net profit of RM42.7 million for the period ended Sept 30, 2017, compared with RM35.9 million for the period ended Sept 30, 2016.

Revenue for the period was also higher at RM118.7 million for the period ended Sept 30, 2017, compared with RM108.1 million for the period ended Sept 30, 2016.

RCE's share price fell two sen to close at RM1.59, with some 207,200 shares changing hands. It has a market capitalisation of RM341.407 million and year-to-date returns of 16.9%.