KUALA LUMPUR: Faced with the prospect of slowing global economic growth, RHB Bank Bhd says its immediate-term focus remains on executing its three-year corporate strategy.
The group's said it would work towards realising the benefits of the plan, focusing on achieving quality growth, driving service excellence and improving efficiency.
"Nevertheless, we remain vigilant in managing our asset quality and in ensuring that we adopt the highest level of governance in managing our day to day business and operations.
"We remain committed in providing the support needed to vulnerable segments of customers," it added in a statement.
Announcing its latest financial results, RHB said it recorded a net profit of RM772.12mil in the fourth quarter of its financial year, which was improved from RM631.17mil in the previous corresponding quarter.
Earnings per share in the quarter under review was 18.24 sen, as compared with 15.34 sen in the comparative quarter.
With the result, the bank wrapped 2022 with a total net profit of RM2.71bil, up from RM2.62bil in the previous year.
Meanwhile, revenue for the group was RM3.95bil in 4QFY22, as compared with RM2.89bil in 4QFY21.
For the 12-month period, revenue was RM13.28bil, up from RM11.75bil.
"The group had demonstrated resilience and delivered commendable performance for FY2022.
"Our growth momentum and fundamentals remain strong as reflected by our strong capital and liquidity positions," said group managing director and group CEO Mohd Rashid Mohamad.
The board of directors declared a second interim dividend of 25 sen per share, comprising a cash payout of 20 sen per share and an electable portion under the dividend reinvestment plan of five sen per share.
With this distribution, total dividend in FY22 amounted to 40 sen per share or 62.5% payout ratio and a dividend yield of 6.9%.
The bank reported that net fund-based income in 2022 was up 8.6% to RM6.38bil, driven by 18.3% higher gross fund-based income as loans grew 6.9%.
The net interest margin in 2022 was 2.24% compared with 2.2% in 2021.
Non fund-based income meanwhile declined 10.6% to RM1.93bil due to lower fee income, insurance underwriting surplus and net trading and investment income.
For the year, the bank's operating expenses rose 5.5% to RM3.72bil on higher personnel and establishment costs.
"With positive JAWS, cost-to-income ratio improved to 44.7% compared with 45.2% in last year," it said.
Expected credit losses (ECL) fell 42.9% to RM421.2mil from lower ECL on loans and securities, and higher bad debts recovered.
Correspondingly, the credit charge ratio improved to 0.15% compared with 0.29% recorded last year.
Meanwhile, the group's total assets increased 7.3% to RM310.8bil as at Dec 31, 2022.
Net assets per share stood at RM6.76 with shareholders' equity at RM28.7bil as at the year-end.
The group's capital position remained strong with Common Equity Tier-1 (CET-1) and total capital ratio standing at 16.9% and 19.3% respectively.
RHB said gross loans and financing grew 6.9% year-on-year (y-o-y) to RM212.2bil, mainly supported by growth in mortgage, auto finance, SME, Commercial, Singapore and Cambodia. Domestic loans and financing grew 5.3% y-o-y.
Gross impaired loans was RM3.3bil as at December 2022 with gross impaired loans ratio of 1.55%, compared with RM3bil and 1.49% respectively as of December 2021.
Loan loss coverage ratio for the group, excluding regulatory reserves, remained healthy at 112.8% as at end-December 2022, compared with 122.4% in December 2021.
Customer deposits increased 3.9% y-o-y to RM227.2bil, attributed to growth in fixed deposits and current account savings account (Casa) of 6.7% and 1.3% respectively.
Casa composition stood at 29.2% while liquidity coverage ratio (LCR) remained sound at 162.1% as at Dec 31, 2022.
