Hong Leong Bank’s Q3 profit up 14%, thanks to higher net income

PETALING JAYA: Hong Leong Bank Bhd registered a 14.4% rise in net profit to RM569.54 million for the third quarter ended March 31, 2017, against RM497.83 million in the previous corresponding period, driven by higher net income of RM121.5 million and higher share of profit from associated company of RM23.2 million.

However, this is mitigated by higher operating expenses of RM28.8 million and higher charge on allowance for impairment losses on loans, advances and financing of RM26.2 million.

The group’s revenue expanded 12.1% from RM1 billion to RM1.12 billion.

The group has proposed to declare an interim dividend of 25 sen per share.

Hong Leong Bank said it remains committed towards its strategic priorities of building a high performance business by upholding operational efficiency through a balance of productivity growth and strategic cost management.

“We will continue to strengthen our current digital offerings to differentiate our multi-channel banking services whilst bolstering our customer analytics capabilities to cater to the changing needs of the customers,” it said, noting that the group is well positioned to grow its domestic franchise and regional businesses while being mindful of credit discipline.

For the nine-month period, Hong Leong Bank’s net profit was up by 23.6% from RM1.34 billion to RM1.66 billion. Revenue came in at RM3.4 billion, 9.7% higher than the RM3.1 billion achieved in the same period a year ago.

Meanwhile, Hong Leong Financial Group Bhd saw its third-quarter net profit expand 32.9% from RM315.07 million to RM418.75 million on the back of a 19.5% gain in revenue from RM1.03 billion to RM1.23 billion.

Its nine-month net profit soared 29.3% from RM965.4 million to RM1.25 billion, with revenue rising 12.7% from RM3.34 billion to RM3.76 billion.