RCE CAPITAL BERHAD (9296.KL)
- Sector
- Financial Services
- Price
- RM 0.905 (2.26%)
- Market cap
- 1.3B MYR
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About RCE CAPITAL BERHAD
Company Description
RCE Capital is a Malaysia-based financial services company operating in the consumer finance sector. It specializes in providing general and personal financing services primarily to civil servants, with repayments facilitated through direct salary deductions. The company operates through its wholly-owned subsidiary, EXP Payment, which offers payroll collection management services for government departments under the Accountant General's Department. Its largest shareholder is Cempaka Empayar Sdn. Bhd., controlled by Tan Sri Azman Hashim.
Business Model
RCE Capital operates as a non-bank financial institution specializing in personal financing for civil servants. The company generates revenue primarily through interest and profit income from its financing receivables. Its operational model relies on nondiscretionary direct salary deductions for repayments, which mitigates default risk. Since it cannot accept deposits, it funds its financing activities through debt issuance and borrowings. A key competitive advantage is its fast financing processing turnaround time of 48 hours. The company employs an in-house credit scoring model capping financing tenure at 10 years and debt service ratios at 60% to ensure responsible lending.
Revenue Segment
For FY2025, revenue is derived entirely from the personal financing segment for civil servants. Based on the income statement composition, Net Financing Income contributed approximately 71.9% (MYR 192 million) and Non-Financing Income contributed approximately 28.5% (MYR 76 million) to Total Operating Income of MYR 267 million.
Geographic Segment
The company operates entirely in Malaysia, with its services focused on Malaysian civil servants and government departments. There is no geographic segment breakdown provided in the reports as all operations are domestic, representing 100% of revenue.
Top Client
The company's key customer group comprises Malaysian civil servants. Repayments are facilitated through direct salary deductions managed via the Accountant General's Department, which acts as a major contracting party for payroll collection management services.
Operational Scale
For the financial year ended March 2025 (FY2025), the company reported gross financing receivables of MYR 2,091 million and total assets of MYR 2,986 million. The average financing size per customer has reduced to approximately MYR 20,000. The company estimates its market share in the personal financing segment to be approximately 2%.
Associate Companies
The reports indicate that RCE Capital has no equity-accounted associates or joint ventures, with Associates and JV income recorded at zero. Its primary subsidiary is the wholly-owned EXP Payment. It engages in related party transactions with AMMB Holdings, which is 12%-owned by RCE's controlling shareholder.