Hong Leong Is­lamic Bank an­nounces strong quaterly earn­ings

The Pak Banker - - Front Page -

KUALA LUMPUR

Hong Leong Is­lamic Bank Ber­had to­day an­nounced its re­sults for the first quar­ter ended 30 Septem­ber 2012.

Net profit af­ter tax for the first quar­ter ended 30 Septem­ber 2012 stood at RM65.2 mil­lion an in­crease of 26% over the pre­vi­ous fi­nan­cial year based on pro forma ac­counts with the as­sump­tion that the merger of HLISB and EONCAP Is­lamic Bank Ber­had (EIBB) had oc­curred as at 1 July 2011.

To­tal As­sets at RM20.0 bil­lion as com­pared to the same quar­ter last year of RM22.1 bil­lion on Pro Forma ba­sis. Gross Fi­nanc­ing and Ad­vances grew to RM12.6 bil­lion, or 8% growth year-onyear on a Pro Forma Ba­sis.

Cus­tomer De­posits at RM16.4 bil­lion as com­pared to the same quar­ter last year of RM17.5 bil­lion on Pro Forma ba­sis with fi­nanc­ing to de­posit ra­tio im­prov­ing from 67% to 77% year on year. The Bank achieved a Profit Af­ter Tax of RM65.2 mil­lion for Q1FY13, a growth of 26% on a Pro Forma Ba­sis. The growth was de­rived from the in­creased con­tri­bu­tion from the fi­nanc­ing and trea­sury ac­tiv­i­ties cou­pled with an im­prove­ment in as­set qual­ity.

Re­turn on Eq­uity (ROE) and Re­turn on As­sets im­proved to 22% and 1.2% re­spec­tively, on the back of higher prof­itabil­ity dur­ing the cur­rent quar­ter.

The Bank recorded a To­tal Net In­come of RM132.8 mil­lion as at 30 Septem­ber 2012, a growth of 18% on a Pro Forma Ba­sis con­trib­uted by the en­larged client base and ca­pac­ity of the merged bank. Cost to in­come ra­tio dropped to 41% from 45% last year re­flect­ing the bet­ter cost ef­fi­ciency achieved af­ter the merger.

The Bank posted to­tal as­sets of RM20.0 bil­lion in Q1FY13 as com­pared to the same quar­ter last year of RM22.1 bil­lion on Pro Forma Ba­sis, mainly due to the re­duc­tion in trea­sury as­sets from the re­bal­anc­ing of the fund­ing and liq­uid­ity needs of the merged en­tity.

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