KUALA LUMPUR: Hong Leong Financial Group Bhd
's (HLFG) reported RM1.506bil in earnings in the financial year ended June 30,2017 supported by its banking, insurance and investment banking businesses, despite a dip in the final quarter.
HLFG reported on Thursday the earnings rose 10.9% from RM1.358bil a year ago. Its revenue increased by 10.8% to RM5.034bil from RM4.543bil.
In the fourth quarter ended June 30, 2017, its earnings fell 34.2% to RM258.79mil from RM393.49bil a year ago
Howevewr, its revenue was up 5.5% at RM1.25bil from RM1.20bil. Earnings per share were 22.60 sen compared with 34.40 sen.
Commenting on the full year results, it said profit before tax rose 20.5% to a record RM3.09bil compared with RM2.56bil a year ago, due to strong contributions from all three core businesses of banking, insurance and investment banking.
“Excluding the one-off mutual separation scheme (MSS) expense last year, the group profit before tax increased by RM352.8mil or 12.9%. The increase was mainly due to higher contribution across all operating divisions,” it said.
HLFG said its life insurance subsidiary Hong Leong Assurance's gross premium surged past RM3bil mark for the first time to RM3.01bil in FY17.
HLFG group president and CEO Tan Kong Khoon (pic) said the pre-tax profit of RM3.09bil was a record.
“Our core businesses continue to show strong credit and liqudity risk metric whicg are important in these times.
“Out continued focus remains on the execution of out business strategies in tandem with our digital plans to build sustainable long-term value for our shareholders,” he said.
In FY17, Hong Leong Bank Group recorded a profit before tax of RM2.748bil for FY17 compared to RM2.381bil last year,up RM366.6mil or15.4%.
Excluding the one off MSS expense last year, HLB Group profit before tax increased by7.6%.
The increase was due to higher revenue of RM372.8mil, lower operating expenses of RM79.3mil (inclusive of MSS expense last year) and higher share of profit from the Bank of Chengdu and Sichuan Jincheng Consumer Finance joint venture of RM30.7mil.
This was however offset by higher allowance for impairment losses on loans, advances and financing of RM108.6mil and higher allowance for impairment losses from securities of RM7.6mil.
HLA Holdings Group recorded profit before tax of RM337.8mil for FY17, up 71% from RM197.5mil last year due to higher life fund surplus of RM61.3mil and higher revenue of RM45.2mil. There was lower allowance for impairment losses on securities of RM40.5mil but offset by higher operating expenses of RM11.3mil..
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