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RHB Bank posts YOY rise in Q4'17 net profit

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RHB Bank posts YOY rise in Q4'17 net profit

Malaysia's RHB Bank Bhd. reported a year-over-year increase in net profit for the fourth quarter of 2017, helped by a rise in net interest income and a decline in allowance for impairments.

The group on Feb. 27 reported net profit attributable to equity holders of 460.1 million Malaysian ringgit, up from 261.2 million ringgit in the prior-year quarter. EPS for the quarter rose to 11.5 sen from 6.5 sen.

Net interest income increased to 892.2 million ringgit from 860.6 million ringgit, while income from the Islamic banking business fell to 255.2 million ringgit from 271.8 million ringgit.

Operating profit before allowances climbed to 820.2 million ringgit from 675.7 million ringgit.

The bank's allowance for impairment on loans, financing and other losses dropped to 114.2 million ringgit from 308.7 million ringgit in the same period the prior year.

For the 2017 full year, the group posted a 16% year-over-year rise in net profit attributable to equity holders to 1.95 billion ringgit from 1.68 billion ringgit. EPS for the full year climbed to 48.6 sen from 43.6 sen.

RHB Bank attributed the rise in full-year net profit mainly to higher net funding income, lower loan loss impairment and lower impairment losses on other assets.

The group's gross impaired loan ratio came to 2.23% as of Dec. 31, 2017, down from 2.43% at Dec. 31, 2016.

Before proposed dividends, the group's total capital ratio clocked in at 17.500% as of Dec. 31, 2017, up from 17.406% at Dec. 31, 2016. Its common equity Tier 1 and Tier 1 ratios for the period came to 14.228% and 14.485%, respectively, up from 13.328% and 13.614%, respectively, at the end of 2016.

After proposed dividends, the group's total capital ratio came to 17.179% as of the end of 2017, down from 17.189% at Dec. 31, 2016. Its common equity Tier 1 and Tier 1 ratios for the period were to 13.907% and 14.164%, respectively, up from 13.111% and 13.398%, respectively, at the end of 2016.

The company declared a final dividend of 10 sen per share for 2017, up from the prior year's final dividend of 7 sen per share. Together with an interim dividend of 5 sen per share, the company's total dividend for 2017 is 15 sen per share, up from 12 sen per share in the year prior.

As of Feb. 26, US$1 was equivalent to 3.91 Malaysian ringgit.