Hong Leong 1Q pre-tax profit increases to RM840.46 mln

KUALA LUMPUR: Hong Leong Financial Group (HLFG) Bhd’s pre-tax profit for the first quarter ended June 30, 2017 increased 15.8 per cent, year-on-year, to RM840.46 million compared with RM725.51 million recorded in the corresponding quarter last year.

Revenue rose to RM1.28 billion, during the period under review, from RM1.18 billion in the corresponding period in 2016.

In a filing to Bursa Malaysia yesterday, HLFG said the higher pre-tax profit was due to stronger contributions from its commercial banking and insurance businesses.

Group president and chief executive officer Tan Kong Khoon said the company’s core businesses had continued to show strong credit and liquidity risk metrics which were important at the moment.

“We have clear and focused business digital strategy which we will continue to execute diligently and we remain focus on building longterm sustainable value for our stakeholders,” he added.

Meanwhile, the group’s banking division, Hong Leong Bank Bhd’s pre-tax profit for the first quarter jumped to RM780.39 million from RM674.62 million recorded in the same quarter last year on the back of a higher revenue of RM1.18 billion versus RM1.10 billion, reported previously.

In a separate filing, it said the increase in pre-tax profit was mainly due to higher net income of RM82.4 million, higher share of profit from an associated company of RM58.5 million and lower allowance of impairment losses on financial investments of RM3.4 million.

“However, this is mitigated by higher operating expenses of RM16.5 million, higher allowance for impairment losses on loans, advances and financing of RM20.3 million and lower share of profit from a joint-venture of RM1.7 million,” it added. — Bernama