RCE Capital 1Q net profit drops 9% on higher allowances for impairment loss

KUALA LUMPUR (Aug 11): RCE Capital Bhd's net profit fell 8.93% to RM32.23 million for the first quarter ended June 30, 2022 (1QFY23), from RM35.39 million a year earlier, due to higher allowances for impairment loss on receivables.

This was despite higher profit and interest income earned from placements of deposits, the consumer finance group said in a Bursa Malaysia filing.

Earnings per share dropped to 4.4 sen from 4.97 sen.

Revenue was flat at RM77.66 million, against RM78.04 million in the year-ago first quarter.

RCE Capital said that following the gradual easing of various restrictions, it experienced positive momentum in its business mainly from the increased economic activities and growth prospects.

Nevertheless, the group said it remains cautious amid expectations of more interest rate hikes ahead.

Shares in RCE Capital closed unchanged at RM1.66 on Thursday (Aug 11), valuing the group at RM1.23 billion.