As long as household debt is high, people need loans (money) for many things. Remember that consumer loan financing is RCECAP's strongest fee-based high income-earner. A ready loan base comes from the 1.6 million civil servants in the country.
In the media release on 10 Aug, RCECAP management said, "Despite the challenging business outlook, the positive momentum in the Group’s consumer loan financing segment is expected to continue." You see, the following 2nd, 3rd & 4th Quarters will excel too.
Jackc, you are totally right. Loans taken will take several years of installment payments which means recurring income for RCE Capital and shareholders.
Name of Principal Officer Date of Acquisition No. of Ordinary Shares of RM0.10 each Total Consideration (RM) % of Issued Shares Oon Hooi Khee 22.08.2016 200,000 128,000 0.061 Low Peck Yoke 22.08.2016 240,000 153,600 0.073 Phoon Kok Kam 22.08.2016 100,000 64,000 0.030 The percentage
Malaysian lenders looking ahead to a tough second half of 2016 after reporting an average 10 percent contraction in earnings for the quarter through June. Here's a snapshot of how the big five banks fared.
Do you think is it easy for any individual to borrow from the banks during these challenging times? Who would they turn to?
While paying my car loan through Toyota Capital at Maybank, I grinned when I noticed that the menu had been added with RCE Marketing, a subsidiary of RCE Capital. Some individuals are repaying their loans through RCE Marketing.
ADA, a trust-owned special purpose bankruptcy remote vehicle, successfully launched its first issuance of RM155.5 million on 21 June 2016, making this the Group’s fourth venture into the debt capital markets. The Sukuk Programme is expected to increase the capital funds of RCEM for future business growth, thus contributing positively to the earnings of the Group in future years.
Factor 5 - Implementation of CCRIS and Loan Quality
The implementation of CCRIS will reduce loan impairments and improve on loan quality, thus increasing earnings. The CEO, Mr Loh Kam Chuen, in a press interview after AGM 2016, admitted that while loan impairments are inevitable in any financial lending business, the ones in RCECAP are within manageable limits.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
paperplane2016
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Posted by paperplane2016 > 2016-08-17 16:34 | Report Abuse
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