KUALA LUMPUR (May 21): DRB-Hicom Bhd (KL:DRBHCOM) saw its net profit for the first quarter more than double, driven by stronger contributions from its mobility, postal and banking segments, underpinned by higher sales and improved cost efficiency.

Net profit for the first quarter ended March 31, 2026 (1QFY2026) rose to RM45 million from RM17.72 million a year earlier, while revenue increased 15.74% to RM4.76 billion from RM4.11 billion.

No dividend was declared for the quarter.

In its filing with Bursa Malaysia, DRB-Hicom said the mobility segment’s earnings growth was supported by higher Proton sales volumes and stronger contributions from the aerospace business following the acquisition of CTRM AeroSystems Sdn Bhd in December 2025.

The banking segment, via Bank Muamalat, recorded improved performance on the back of higher financing income, driven by growth in financing volumes and an expanding customer base.

Meanwhile, the postal segment, under Pos Malaysia Bhd (KL:POS), benefited from higher courier volumes, stronger logistics contributions, and increased aviation-related activities, including in-flight catering and ground handling services.

Looking ahead, DRB-Hicom expects a moderate performance for the financial year ending Dec 31, 2026.

The group said Proton maintained strong momentum in 1QFY2026, with sales rising 40.1% year-on-year to 49,140 units, supported by its growing electric vehicle (EV) portfolio.

“Its electrification strategy continues to gain traction, with the e.MAS 5 emerging as Malaysia’s best-selling EV, achieving sales of 6,701 units year to date in 2026,” it said, adding that rising fuel costs and subsidy rationalisation are driving demand for more efficient mobility solutions.

In banking, the group continues to strengthen its Islamic finance franchise while advancing its digitalisation efforts through Bank Muamalat’s shariah-compliant digital platform, ATLAS.

DRB-Hicom is also expanding its aerospace capabilities, particularly in composites manufacturing and aerostructures assembly, following the acquisition of CTRM AeroSystems, further strengthening its position along the aerospace value chain.

For the postal segment, it said Pos Malaysia remains focused on narrowing losses through its transformation plan, which includes network rationalisation, digital channel expansion and tighter cost management. 

“Concurrently, the group continues to advance its digitalisation agenda across its businesses to enhance operational efficiency and overall performance,” DRB-Hicom added. 

Shares of DRB-Hicom closed down three sen or 2.56% at RM1.14 on Thursday, giving it a market capitalisation of RM2.2 billion.