CEO Morning Brief

RCE Capital’s 2Q Net Profit Up 16%, Declares 23 Sen Dividends

Publish date: Tue, 22 Nov 2022, 08:41 AM
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TheEdge CEO Morning Brief
RCE Capital’s 2Q net profit up 16%, declares 23 sen dividends

KUALA LUMPUR (Nov 21): RCE Capital Bhd’s net profit rose 15.84% to RM36.54 million or 4.99 sen per share for the second quarter ended Sept 30, 2022 (2QFY2023), from RM31.55 million or 4.41 sen per share a year earlier due to higher allowances for impairment loss on receivables.

In a Bursa Malaysia filing, the group declared 23 sen in dividends — a five sen first interim dividend and an 18 sen special interim dividend — with a Dec 16 ex-date.

Revenue for the quarter rose 17.09% to RM81.76 million compared to RM69.82 million in 2QFY2022, mainly carried by higher early settlement and fee income arising from increased refinancing activities by customers and sales campaigns launched.

For the six months ended Sept 30, 2022 (6MFY2023), RCE Capital’s cumulative net profit rose 2.74% to RM68.77 million from RM66.93 million in the same period a year earlier, as revenue increased 7.82% to RM159.42 million from RM147.86 million.

Despite the elevated cost of living driven by inflation and recent overnight policy rate hikes, RCE Capital said the group remains “cautiously optimistic” that its business will gradually improve and even grow beyond its pre-pandemic level.

Meanwhile, towards catering to its customers' evolving needs, the group said it continues to enhance its customer onboarding application.

“The group is committed to staying profitable for the financial year ending March 31, 2023 (FY2023),” RCE Capital added.

RCE Capital’s core business is delivering shariah-compliant financing services to civil servants.

Shares in RCE Capital closed five sen or 2.91% higher at RM1.77, giving the group a market capitalisation of RM1.31 billion.

Source: TheEdge - 22 Nov 2022

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