Hong Leong Bank Bhd's net profit rose 21.1% to RM690.03mil in the third quarter ended March 31, 2018.
KUALA LUMPUR: Hong Leong Bank Bhd
's net profit rose 21.1% to RM690.03mil in the third quarter ended March 31, 2018, underpinned by higher net income, lower allowance for impairment losses on loans, advances and financing.
It announced on Wednesday the better net profit compared with RM569.53mil a year ago was due to the higher net income of RM132.3mil, lower allowance for impairments of RM33.1mil while profit from associated companies came in at RM18.5mil. However, this was mitigated by higher operating expenses of RM25.8mil.
Hong Leong Bank's pre-tax profit rose 22.7% to RM855.1mil from RM697.04mil. Its revenue increased by 11.8% to RM1.25bil from RM1.12bil. Earnings per share were higher at 33.73 sen compared with 27.84 sen.
Its personal financial services segment recorded pre-tax profit of RM278.9mil, decline from RM297.4mil due to lower total income and higher operating expenses. However, it was
partially offset by lower allowance for impairment losses on loans, advances and financing.
As for its business and corporate banking's segment recorded a pre-tax profit of RM208.8mil versus RM197.8mil a year ago due to lower allowance for impairment losses on loans, advances and financing, partially offset by higher total operating expenses.
Hong Leong Bank said the global markets's segment recorded a pre-tax profit of RM149.4mil versus RM87.0mila year ago. The increase in pre-tax profit was mainlycontributed by higher total income, partially offset by higher operating expenses.
The international banking's segment recorded a pre-tax profit of RM140.6mil compared with RM126.3mil a year ago. This was due to higher share of profit from associated company in China, partially offset by higher operating expenses.
For the nine months ended March 31, 2018, its net profit was up 21% to RM2.01bil from RM1.66bil. Revenue dipped to RM3.66bil from RM3.39bil.
The group pre-tax profit for the nine months ended March 31, 2018 rose 19.4% to RM2.468bil from RM2.068bil in the previous corresponding period.
The increase was mainly due to higher net income of RM264.5mil, lower allowance for impairment losses on loans, advances and financing of RM30.6mil, higher writeback of impairment losses on financial investments of RM1.7mil and higher share of profit from associated company of RM162.6mil.
This was mitigated by higher operating expenses of RM57.4mil and lower share of profit from joint venture of RM1.7mil.
The bank's group managing director and CEO Domenic Fuda said the bank had achieved another significant milestone for both the nine months and third quarter as net profits reached RM2.012bil and RM690mil.
He attributed it to solid top-line growth, prudent cost management as well as strong contribution from our associate company.
This resulted in an improved return-on-equity (ROE) of 11.7% and 11.9% for the 9MFY18 and Q3FY18, respectively.
“Our continued strong performance further underlines the strength of the bank and reinforces our long-term strategy and commitment towards delivering consistent results and sustainable profits.”
“Executing our digital strategy remains a key priority to transform our engagement with customers. The launch of our e-Ang Pow and interactive AngPow TAP game on the Hong Leong Connect mobile banking platform proved a hit during the Chinese New Year celebrations.
“We take pride in leading the digital and innovation space to provide the best experience through reimagining the banking journey of our customers.”
