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09 Feb 2018
Malaysian Reserve : RCE Capital post higher earnings 3Q
 
RCE Capital post higher earnings 3Q
Friday, February 9th, 2018
Markets | News by TMR 

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RCE Capital Bhd posted a net profit of RM22.9 million for the third quarter (3Q) ended Dec 31, 2017, an increase of 5% year-on-year (YoY) on the back of 10.4% YoY rise in revenue of RM64 million.

The finance company noted the the increase was primarily due to higher interest and fee income buoyed by its consumer financing segment’s expanded loan base from RM1.5 billion to RM1.6 billion.

According to its filing with Bursa Malaysia today, the group noted its consumer financing segment made a pre-tax profit of RM86.5 million, representing an increase of 22.3% as compared to RM70.7 million in the corresponding period a year ago, on the back of higher net interest income driven by expanded loan base in the current period.

Pre-tax profit for its management services and other segments dropped to RM800,000 compared to RM1.9 million in the same quarter last year.

“This was mainly due to net gain on disposal of investment property and higher write back of allowance for impairment loss in the corresponding period,” it said.

The group expects its loan portfolio quality to remain a priority as they periodically assess its products and credit scoring model to remain competitive and relevant in a dynamic market environment.

RCE expects the next quarter to be more profitable on account of the demand in the consumer financing segment as well as the group’s efforts in leveraging on its key business strengths.