Hong Leong Islamic Bank announces strong quaterly earnings
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.