KUALA LUMPUR (Nov 20): Consumer finance company RCE Capital Bhd’s (KL:RCECAP) net profit in the second quarter ended Sept 30, 2024 (2QFY2025) was down 27.25% to RM27.83 million, from RM38.25 million a year ago, as its revenue slipped 8.4% to RM80.41 million.

The lower revenue was due to the group prioritising better credit quality disbursement for sustainable financing growth, said RCE Cap in its filing to Bursa Malaysia on Wednesday.

At the same time, its directors' remuneration and staff costs jumped 80% year-on-year to RM12.39 million in 2QFY2025, from RM6.89 million in the corresponding quarter.

Its earnings per share dropped to 1.9 sen in 2QFY2025, from 2.61 sen in 2QFY2024.

The group declared a lower first interim dividend of three sen per share, compared to four sen per share paid last year. The latest dividend will be paid on Dec 31, 2024.

For the half-year period ended Sept 30, 2024 (1HFY2025), RCE Cap’s net profit shrank by 22.6% year-on-year to RM58.15 million, from RM75.13 million, as cumulative revenue declined by 7.14% to RM159.52 million, from RM171.79 million previously.  

Going forward, the group expects to remain profitable for the financial year ending March 31, 2025 (FY2025).

It is committed to strengthening asset quality through enhanced credit assessment, risk management and recovery efforts, said RCE Cap.  

The share price of RCE Cap closed up two sen or 1.17% to RM1.73, bringing the group a market capitalisation of RM2.56 billion.