While HLFG
KUALA LUMPUR: Hong Leong Financial Group recorded a 3.8% increase in net profit to RM987.24mil for the first half of FY19 ended Dec 31, 2018, on the back of flattish revenue of RM2.63bil.
According to the group, efforts to drive its Islamic financial services came to fruition with net income from the Islamic banking and Takaful businesses growing 8.3% to RM371.6mil year-on-year.
Non-interest income increased 4.9% to RM894.7mil, due mainly to higher net income from the insurance business, and better unit trust and asset management income, it said.
"Despite a challenging business environment, we are pleased to record a steady first half financial result from our core businesses," said Tan Kong Khoon, Hong Leong Financial Group president and CEO.
"The Group continues to show strong key balance sheet and liquidity risk metrics. We have a clear and focused business and digital strategy, where we will continue to execute diligently to build long-term sustainable value for our shareholders.”
The group's commercial banking business recorded profit after tax of RM1.39bil, a 5.5% increase over the year-ago period due to a healthy expansion in its loan books, improving asset quality metrics as well as solid contributions from associates.
Non-interest income for the period rose 7.9% y-o-y to RM674.9mil, representing a higher non-interest income ratio of 28.2% on stable fee income contributions, improved forex gains and the divestment of a joint venture.
In the insurance segment, HLA Holdings Sdn Bhd recorded a pretax profit of RM140.9mil in 1HFY19, 7.6% lower y-o-y due to lower premium and equity market volatilities.
According to the group, it continues to make good progress in growing non participating and investment link new business premiums at over 90% of new business premiums.
"This is important to our efforts to create higher new business embedded value in the current business environment," it said.
"The focus remains on growing and improving the quality of HLA’s premium base, increasing profitability drivers as well as growth across multiple distribution channels."
Meanwhile, the investment banking division under Hong Leong Capital Bhd
, recorded a pretax profit of RM37.5mil in 1HFY19, maintaining last year’s profit.
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