Hong Leong Bank 2Q net profit rises to RM702mil

  • Banking
  • Thursday, 27 Feb 2020

Hong Leong Domenic Fuda

PETALING JAYA: HONG LEONG BANK BHD (HLB) has posted much improved financial results in the second quarter ended Dec 31,2019 with its net profit rising to RM701.81mil, boosted by higher net interest income despite an allowance for impairments.

In a filing with Bursa Malaysia, it said the net profit was up 2.1% from the RM687.24mil a year ago.

The higher earnings were due to the bank’s revenue, which rose by 8.4% to RM1.238bil from RM1.142bil, boosted by higher net interest income, an increase in operating income and other operating income.

Its net interest income rose to RM728.82mil, up from RM706.31mil; net interest income from Islamic banking business rose to RM206.39mil from RM172.74mil while other operating income was higher at RM302.33mil from RM263.11mil.

In a press release, the bank’s group managing director and chief executive officer Domenic Fuda(pic) said the “commendable set of results” were achieved on the back of strong top line growth, vigilance in cost management and solid contributions from associates.

He said despite the prevailing cautious business sentiment, gross loans and financing continued to gain traction with a 7.3% y-o-y growth, which was complemented by firm asset quality metrics.

“The bank’s focus on growing strategic segments of retail and corporate loans (including SME) remains intact, although the environment is more challenging than it was a quarter ago.

“We are, for example, seeing encouraging results in new initiatives such as renewable energy financing, where there is a structural shift in the economy towards more environmentally sustainable energy sources. Efforts towards growing this sector has been positive as evidenced by the over RM300mil in financing which had been approved in the first half of the financial year, ” he added.

In a separate filing, HLB’s parent company Hong Leong Financial Group Bhd’s (HLFG) announced that its net profit rose 4.4% yoy to RM502.96mil for the second quarter ended Dec 31,2019.

This brought its earnings for the first half of the financial year ended June 30,2020 (FY20) to RM993.16mil from RM987.24mil recorded in the same period before.

Revenue for the latest quarter rebounded 9.2% to RM1.36bil, raising revenue for the first six months of FY20 to RM2.69bil, HLFG told the stock exchange.

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