PETALING JAYA: Following a solid performance in its recent quarter, Hong Leong Bank Bhd (HLB) group managing director and chief executive officer Domenic Fuda says the group remains cautiously optimistic over the business outlook for the remainder of 2023.
“We are pleased with the solid underlying performance of the bank year-to-date, underpinned by healthy loan/financing growth, solid asset quality and prudent funding and liquidity positions amid a slowing global landscape,” he said in a statement.
In the third quarter of its financial year ended March 31, 2023, HLB posted a net profit of RM929.96mil, which represents an earnings per share of 45.39 sen, up from a net profit of RM784.8mil in the same quarter in 2022.
The bank reported a revenue of RM1.4bil, up from RM1.35bil in the previous comparative quarter.
Year-to-date, HLB registered a net profit of RM2.95bil and revenue of RM4.38bil, which compares to a net profit of RM2.38bil and revenue of RM4.1bil in the previous corresponding period.
Accordingly, the bank’s return on equity improved to 12.3% in the nine-month period of financial year 2023.
The increase in total income was mainly owing to a higher non-interest income contribution of RM919mil, which represented a 43.7% growth year-on-year (y-o-y).
It said the improved performance was attributed to higher credit card-related fees coupled with an improved performance in trade finance, trading and foreign exchange due to the strengthening of the local currency.
Net interest income, meanwhile, was stable y-o-y at RM3.46bil during the nine-month period on the back of still elevated funding cost pressure, which was mitigated by loan/financing expansion and discipline asset/liability management.
Correspondingly, net interest margin for the period stood at 2.03%.
Meanwhile, HLB’s parent company Hong Leong Financial Group Bhd (HLFG) recorded a net profit of RM2.17bil in the nine-month period to March 31 as compared to RM1.78bil in the same period in the previous financial year.
In a separate statement, HLFG said it recognised higher contribution from HLB and the insurance division, HLA Holdings Sdn Bhd, while the investment banking division, Hong Leong Capital Bhd recorded lower contributions.
Group revenue rose to RM4.96bil from RM4.61bil in the comparative period.