HONG LEONG FINANCIAL GROUP Q4 PROFIT DIPS 34PC
KUALA LUMPUR: Hong Leong Bank Bhd’s fourth-quarter net profit ended June fell 13.5 per cent to RM482.92 million, from RM558.54 million, dragged by higher operating expenses, impairment losses on loans, advances and financing, lower write-back of impairment on financial investments and lower share of profit from joint ventures.
However, the bank’s fourthquarter revenue expanded 6.48 per cent to RM1.15 billion, from RM1.08 billion previously, and with this, it has proposed an interim dividend of 30 sen per share.
Hong Leong Bank said it remained committed to its strategic priorities of building a highperformance business by upholding operational efficiency through a balance of productivity growth and strategic cost management.
“We achieved good full-year results on the back of strong topline growth, supported by sustained margin improvements and moderate recovery from associates’ contributions,” said group managing director and chief executive officer Domenic Fuda at a media briefing, here, yesterday.
Also present was Hong Leong Bank chief financial officer Foong Pik Yee.
“We will continue to strengthen our current digital offerings to differentiate the multi-channel banking services while bolstering our customer analytics capabilities to cater to the changing needs of the customers,” he said.
According to Fuda, the bank was well-positioned to grow its domestic franchise and regional businesses while being mindful of credit discipline.
For the full year, Hong Leong Bank’s net profit was up 12.7 per cent to RM2.15 billion from RM1.9 billion previously, while revenue came in at RM4.55 billion — 8.9 per cent higher than the RM4.18 billion achieved a year ago.
Last month, UOB Kay Hian Holdings Ltd, a Singapore-based global investment bank, in its notes to investors, suggested that Alliance Financial Group Bhd (AFG) was looking to merge with Hong Leong Bank.
Hong Leong Bank is Malaysia’s fifth-largest by asset size while AFG is the smallest among the eight local banking groups.
“That’s not true. Hong Leong Bank is not in any merger and acquisition talks at the moment. While we wouldn’t dismiss strategic offers that make sense, for now, we are focusing on organic growth,” said Fuda.
Hong Leong Bank with branch offices across Singapore, Hong Kong, Vietnam, Cambodia and owning 20 per cent in Bank of Chengdu Co Ltd in China, is a subsidiary of Hong Leong Financial Group Bhd. Ooi Tee Ching