Hong Leong Bank’s income falls 8.1%


  • Business
  • Wednesday, 29 May 2019

Affin Hwang downgraded its rating from

KUALA LUMPUR: HONG LEONG BANK BHD’s third quarter net profit fell by 8.1% to RM633.89mil from RM690.03mil a year ago due to a lower net income but mitigated by lower operating expenses, lower allowance for impairments and a higher share of profit from an associate company.

The banking group announced its revenue fell by 7.1% to RM1.166bil from RM1.256bil.

Earnings per share were 30.98 sen compared with 33.73 sen.

For the nine months, its net profit rose by 0.8% to RM2.028bil from RM2.012bil in the previous corresponding period. Its revenue fell by 2.8% to 3.558bil from RM2.663bil.

Hong Leong Bank group managing director and CEO Domenic Fuda said: “Despite ongoing economic challenges, loan growth momentum for Hong Leong Bank accelerated to a healthy 6.5% y-o-y expansion to RM133.6bil, whilst continuing to uphold its solid asset quality, signifying the bank’s commitment towards delivering on sustainable results to our stakeholders.

“Net profit after tax for the third quarter and nine months achieved RM634mil and RM2.028bil respectively, attributed to a healthy expansion in loan book despite lingering concerns in the operating environment, outstanding asset quality as well as consistently strong contribution from our associates,” he said.

Fuda said Q3 saw a pick-up in net interest margin to 2.00%, up two bps on prior quarter.

He added this positive performance reflected the bank’s commitment to further enhance product offerings, such as the recent launch of its co-branded Emirates HLB cards.


   

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