KUALA LUMPUR (Feb 24): Consumer finance company RCE Capital Bhd’s (KL:RCECAP) net profit in the third quarter ended Dec 31, 2024 (3QFY2025) fell 11% to RM30.76 million, from RM34.56 million a year ago.

This was on the back of a 9.2% drop in quarterly revenue to RM79.33 million from RM87.41 million previously.

The lower revenue was due to the group tightening its credit policy on disbursements while it prioritises for better credit quality disbursement for sustainable financing growth.

This was despite its directors' remuneration and staff costs falling 42.1% to RM6.56 million from RM11.33 million in the corresponding quarter.

No dividend was declared for the quarter.

For the nine months ended Dec 31, 2024 (9MFY2025), RCE Cap’s net profit fell 18.9% year-on-year to RM88.91 million, from RM109.69 million, as cumulative revenue declined 7.9% to RM238.85 million from RM259.2 million previously.  

Financing receivables fell 3.2% RM1.92 billion as of December 2024, from RM1.98 billion a year ago.

In terms of prospects, the company said it is focusing on operational efficiency and agility in managing the increase in financing demand, fuelled by the first phase of salary adjustment for civil servants in December 2024 and upcoming festive season.

“Targeted marketing efforts supported by investment in digitalisation and information technology security standards will ensure the group remains well equipped to meet evolving customers’ needs,” it added.

Shares of RCE Cap fell one sen or 0.7% to RM1.34, giving it a market capitalisation of RM1.99 billion. The stock has been on a downward trend since last November, having fallen 23.4% over the past three months.