RHB Bank sets 5% loan growth target for 2017

KUALA LUMPUR: RHB Bank Bhd, which saw a 28.1% drop in net earnings for the fourth quarter (Q4) of 2016, is targeting 5% loan growth this year, slightly higher than the 2% increase it registered last year.
"From our point of view, what we went through last year was probably the worst, as we were also impacted by the oil and gas segment," its group managing director Datuk Khairussaleh Ramli told reporters at the bank’s results briefing here today.
"This year, with the improved oil price, in terms of loan growth we think that we can grow at about the industry level. With that, we expect return on equity (ROE) to grow between 9-10% this year," he added.
Khairussaleh said the group's gross loans increased 2% year-on-year to RM154.5 billion in 2016, driven by mortgage growth at 13.3% and small and medium enterprises (SME) loans and financing growth at 11.3%.
For the fourth quarter ended Dec 31, 2016 (Q4FY16), the bank's net profit fall 28.1% to RM261.24 million, from RM363.37 million in the previous corresponding quarter, mainly due to higher impairment on loans and financing, lower non-fund based income and higher operating expenses.
Revenue declined 9.25% to RM2.56 billion, compared with RM2.82 billion in the same period last year.
For FY16, its net profit slightly up by 1% to RM1.68 billion, from RM1.66 billion a year ago, while revenue reduced slightly by 1.9% to RM10.57 billion, against RM10.78 billion previously.