KUALA LUMPUR (Feb 27): DRB-Hicom Bhd (KL:DRBHCOM) has reported its third straight quarterly loss in the financial year ended Dec 31, 2024 (FY2024), hurt by higher financing costs, lower automotive sales, and margin compression in the banking segment.

The diversified conglomerate’s net loss expanded to RM46.6 million for the final three months ended FY2024 (4QFY2024), from RM5.29 million in 3QFY2024 and RM17.08 million in 2QFY2024. 

The group had reported a net profit of RM26.47 million a year earlier for 4QFY2023.

DRB-Hicom owns a 70% stake in Bank Muamalat Malaysia Bhd, and a 50.1% stake in Proton Holdings Bhd plus a 53.5% stake in Pos Malaysia Bhd (KL:POS).

Quarterly revenue, however, grew 5.2% year-on-year (y-o-y) to RM3.97 billion from RM3.77 billion, thanks to higher contributions from the banking, properties, services, and postal segments.

No dividend was declared for the quarter under review.

For the full FY2024, DRB-Hicom’s net profit shrunk by 90.6% to RM22.55 million — its lowest annual net profit — against RM238.88 million in FY2023, even as revenue went up 2.1% to RM16.19 billion from RM15.85 billion last year.

Notwithstanding the lower Proton vehicles sales volume in FY2024, the group is optimistic about the automotive business following its newly launched electronic vehicle (EV) Proton e.MAS 7, as well as Malaysia’s record-high automotive total industry volume (TIV) sales last year.

“The group remains committed to enhancing its product offerings, adopting advanced technologies, and elevating customer experience across all marques, including Proton, Honda, Mitsubishi and Isuzu,”

DRB-Hicom, nonetheless, expects a "moderate growth" for FY2025, it said.

Shares of DRB-Hicom closed at 80 sen, up three sen or on Thursday, giving the group a market capitalisation of RM1.54 billion.