Newsroom
08 Feb 2018
The Star : RCE Capital posts higher Q3 earnings of RM22.92m
 
RCE Capital posts higher Q3 earnings of RM22.92m
The Star Online
Thursday, 8 Feb 2018  5:24 PM MYT 

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KUALA LUMPUR: RCE Capital Bhd posted 5% higher earnings of RM22.92mil in its third quarter ended Dec 31 over the previous corresponding quarter on the back of 10.4% higher revenue of RM64mil.

The lender said the increase was primarily contributed by higher interest and fee income buoyed by its consumer financing segment's expanded loan base of RM1.6bil from RM1.5bil.

The consumer financing segment recorded a pre-tax profit of RM86.5mil, a 22.3% increase from RM70.7mil in the previous corresponding period due to the expanded loan base.

However, pre-tax profit in the investment holding, management services and others segment dropped to RM800,000 from RM1.9mil in the same quarter last year due to a net gain on disposal of investment property and higher write-back of allowance for impairment loss previously.

For the cumulative nine-month period, the group posted earnings of RM65.66mil, a 13.7% improvement over the same period last year.

RCE Capital said the loans portfolio quality remains a priority to the group as its periodically assesses its products and credit scoring model to remain competitive and relevant. 

"This complements the risk-based pricing approach, which facilitates our efforts in managing expected yield and return to the Group. 

"Meanwhile, the Group endeavours to sustain its growth by on-going process simplification and technological enhancement initiatives to promote operational efficiencies," it said in its filing to the stock exchange.

The group expects modest growth in the consumer financing segment and better profitability in the financial year ending March 2018 compared to the previous year.