Hong Leong Bank’s first quarter net profit 11% up

PETALING JAYA: Hong Leong Bank Bhd’s (HLB) earnings rose by almost 11% year-on-year (y-o-y) in its first quarter ended Sept 30, led by higher net income and lower allowance for impairment losses on loans, advances and financing.

The bank told the stock exchange yesterday that its net profit in the three-month period increased from RM638.97mil in the previous corresponding quarter to RM706.92mil.

Its business and corporate banking segment recorded a 4.9% y-o-y increase in pre-tax profit. However, its other three segments, namely, personal financial services, global markets and international banking saw their pre-tax profits declining.

HLB’s revenue in the first quarter was up 6% y-o-y to RM1.25bil.

The bank did not declare any dividends for the quarter in review. Earnings per share was at 34.55 sen.

In a separate statement, group managing director and chief executive officer Domenic Fuda said the bank’s gross loans and financing grew 4% y-o-y to RM129.8bil in the first quarter, with a lower gross impaired loan ratio of 0.81%.

“By entrenching ourselves in the communities, leveraging on our branch footprint and digital capabilities, we continue to grow our domestic franchise and regional businesses. We also take pride in leading the digital and innovation space to provide best-in-class experiences and engage with our customers through reimagined customer journeys,” he said.

HLB said its liquidity remained robust and continued to be supportive of business growth with a loan-to-deposit ratio of 81.7%.

“The liquidity coverage ratio for the same period stood at 117%, well exceeding regulatory requirements,” it said.

As for customer deposits for the first quarter, it increased 4% y-o-y to RM158.8bil, largely from fixed deposits, while the current account and savings account ratio was stable at 25%.

Meanwhile, in a separate filing, the bank’s parent company Hong Leong Financial Group Bhd (HLFG) also announced its first-quarter results, which saw earnings rising 11.1% y-o-y to RM505.7mil.

The improvement in bottom line was due to a higher contribution across all operating divisions.

The group’s revenue in the quarter was up 8.17% y-o-y to RM1.38bil.

A dividend of 13 sen was announced for the three-month period. Earnings per share was at 44.2 sen.