HLB posts RM1.39b net profit despite challenges
KUALA LUMPUR: Hong Leong Bank Bhd’s (HLB) net profit grew 5.5 per cent to RM1.39 billion in the first half of its financial year ending June 30, 2019 despite a challenging environment.
This was driven by a healthy expansion in loan book, improving asset quality and contribution from its associates.
The bank also charted a growth of 0.6 per cent, or RM687 million, in net profit in the second quarter ended December 31, 2018.
Managing director and chief executive officer Domenic Fuda said HLB had maintained a resilient performance.
“Despite the economic challenges, our business momentum continues to gain traction.
“Furthermore, with a solid gross impaired loan ratio of 0.8 per cent and a loan impairment coverage ratio of 122 per cent, we have undeniably secured one of the strongest asset quality positions in the industry, as affirmed by Moody’s recent upgrade of our baseline credit assessment, to be on par with the Malaysian sovereign rating.
“With this in mind, we remain steadfast in delivering consistent and sustainable results to our stakeholders over time,” he said at a briefing yesterday.
HLB’s gross loans, advances and financing in the first half grew 4.8 per cent year-on-year to RM131.6 billion on the back of cautious business sentiments and a challenging economic environment. Overall loan growth was predominantly driven by expansion in mortgages and domestic business segments as well as overseas operations.
Domestic loans to the retail segment continued to drive loan growth in the first half, contributing 71 per cent of total loans.
Fuda also said HLB’s full-year loan growth was estimated to exceed 5.5 per cent.