KUALA LUMPUR (Aug 15): RCE Capital Bhd's (KL:RCECAP) net profit slipped by 17.8% to RM30.3 million in the first quarter ended June 30, 2024 (1QFY2025) from RM36.9 million a year earlier, due to higher allowances for impairment losses on receivables.

Earnings per share eased to 4.14 sen from 5.03 sen, according to the consumer financing firm’s bourse filing on Thursday.

Quarterly revenue declined marginally by 5.8% to RM79.1 million from RM84 million in 1QFY2024, mainly due to lower fee income, despite an increase in profit income to RM72 million from RM71.1 million.

RCE did not declare any dividend for the quarter under review.

On a quarter-on-quarter (q-o-q) basis, net profit rose 4.3% from RM29 million, driven by lower allowances for impairment losses on receivables and facility fees incurred against the immediate preceding quarter 4QFY2024. Revenue was 4.1% lower q-o-q compared with RM82.5 million, dragged down by lower fee income.

Despite a weaker start to FY2025, RCE said it remains optimistic about maintaining profitability for the remainder of FY2025.

As a responsible Shariah-compliant financier, the group said it will prioritise quality financing growth and prudent credit risk management to ensure long-term business sustainability.

The group is also committed to enhancing its brand presence through targeted marketing initiatives and sales campaigns.

"Additionally, ongoing improvements in digitalization and cybersecurity capabilities are being implemented to drive customer experience and operational resilience," RCE noted.

RCE's shares fell four sen to RM3.27 at the closing bell on Thursday, valuing the company at RM2.42 billion.