Malaysia's RHB Bank Bhd. posted a 6.7% year-over-year rise in net profit for the first quarter as allowances for credit losses on loans and other financial assets declined.

The group on May 27 reported a first-quarter net profit attributable to equity holders of 630.2 million ringgit, up from 590.8 million ringgit in the prior-year period. EPS climbed to 15.7 sen from 14.7 sen.

The company attributed the rise in net profit mainly to lower expected credit losses on loans and other financial assets, as well as lower operating expenses.

Net interest income for the quarter fell to 880.3 million ringgit from 930.2 million ringgit, while income from Islamic banking business increased to 381 million ringgit from 273.8 million ringgit.

Net income inched down to 1.74 billion ringgit from 1.77 billion ringgit. Operating profit before allowances declined to 896.1 million ringgit from 906.4 million ringgit.

Allowance for credit losses on financial assets amounted to 72.9 million ringgit, down year over year from 114.5 million ringgit.

Net interest margin for the quarter came to 2.16%, down from 2.28% for the prior-year quarter.

The group's gross impaired loans ratio clocked in at 2.12% as of March 31, down from 2.29% at March 31, 2018.

Before proposed dividends, the group's total capital ratio came to 19.458% at the end of March, up from 19.213% at Dec. 31, 2018. Over the same period, the group's Tier 1 capital ratio rose to 16.262% from 16.128%, while its common equity Tier 1 ratio climbed to 16.107% from 15.920%.

After proposed dividends, the group's total capital ratio came to 19.018% at the end of March, up from 18.780% at Dec. 31, 2018. Over the same period, the group's Tier 1 capital ratio rose to 15.822% from 15.696%, while its common equity Tier 1 ratio increased to 15.667% from 15.488%.

As of May 24, US$1 was equivalent to 4.19 Malaysian ringgit.