KUALA LUMPUR: Hong Leong Bank Bhd
recorded a net profit of RM1.6bil for the six months ended Dec 31, 2021, which was a 14.2% enchancment over RM1.4bil in the earlier corresponding interval.
The group reported income of RM2.75bil in the course of the interval, which was little modified over the identical interval in 2020 as increased net curiosity revenue was offset by decrease non-interest revenue contribution.
In the second quarter alone, the group posted a net profit of RM738.59mil, which was 10.11% increased year-on-year (y-o-y) on 2.1% decrease income of RM1.37bil.
“The second quarter of our monetary yr noticed the reopening of the financial system and subsequent pickup in financial actions which correspondingly resulted in extra demand from purchasers for loans/financing, as such, we have been capable of preserve the expansion momentum we have now seen over the previous few quarters,” stated Hong Leong Bank group managing director and CEO Domenic Fuda in a press release.
The group declared an interim dividend of 18 sen per share with entitlament ate on March 15, 2022, and payable on March 25, 2022.
Meanwhile, Fuda stated he was optimistic over the trajectory of the worldwide restoration given the excessive charge of vaccinations in Malaysia and globally.
“Additionally, accommodative fiscal and financial coverage measures in place are anticipated to assist help the restoration, though some jurisdictions are anticipated to tighten monitory coverage in coming quarters.
“We count on such tightening to be gradual in order to not negatively influence the worldwide restoration underway,” he added.
Over the primary half of the monetary yr, the group recorded net curiosity revenue of RM2.23bil, which translated right into a net curiosity margin of 2.19%.
Non-interest revenue nonetheless was compressed at RM454mil with a non-interest revenue ratio of 16.5% on account of decrease revaluation and disposal positive factors of monetary belongings.
However, the financial institution reported stronger wealth administration revenue and better card charges backed by a restoration in retail buyer spend.
Operating bills for 1HFY22 as 1.2% decrease y-o-y at RM1,92bil whereas cost-to-income ratio stood at 37.1%.
Operating profit earlier than allowance in the course of the six month was increased y-o-y at RM1.73bil.
Meanwhile, the financial institution’s gross loans, advances and financing grew 6.7% y-o-y to RM160.1bil due primarily to an growth in mortages, SME and industrial banking.
Domestic loans financing expanded 5.7% forward of the business development charge of 4.5%.
On liquidity, the financial institution’s loans-to-deposit ratio stood at 83.7% whereas loans-to-credit ratio improved to 149.5%.
Customer deposits in the meantime rose 6.8% to RM188.6bil with present account, financial savings account (Casa) development of 18.6% to RM62.3bil, elevating the Casa ratio to 33.1%.
The financial institution’s gross impaired loans ratio was 0.46% whereas mortgage impairment protection stood at 250.6% as at end-2021.
The capital place of the financial institution remained wholesome with CET 1, Tier 1 and whole capital ratios at 13.1%, 1.6% and 15.7% respectively as at end-2021.
Meanwhile, Hong Leong Financial Group (HLFG) posted a six months net profit of RM1.2bil, a 7.7% bounce over RM1.11bil in the identical interval in 2020 on account of increased contribution from Hong Leong Bank whereas insurance coverage division HLA Holdings Sdn Bhd and funding banking arm Hong Leong Capital Bhd recorded decrease contributions.
In a separate assertion, HLFG stated net revenue from the islamic banking and Takaful companies for the interval was RM484mil, a 1.1% drop y-o-y.
The group declared an interim dividend of 15 sen per share with entitlement destiny on March 15, 2022, and payable on March 30, 2022.
“With our rising vaccination and booster charges, we anticipate the Malaysian financial system will stay secure supported by growth in international demand, increased personal sector expenditure amid enhancements in the labour market, and continued accommodative coverage help.
“The group shall stay vigilant and proceed our robust deal with danger administration with a view that Malaysia will be capable of preserve a balanced method to public well being administration while supporting financial development in 2022,” stated HLFG president and CEO Tan Kong Khoon.
