Hong Leong Bank Q2 net profit up 2.4%

PETALING JAYA (Feb 26, 2014): Hong Leong Bank Bhd saw its net profit grow by 2.4% to RM520.29 million in second quarter ended Dec 31, 2013 (Q2 FY14), up from RM507.99 million a year before, due mainly to higher write-back of impairment losses from securities, as well as higher share of profit from Bank of Chengdu Co Ltd and joint venture.
Meanwhile, its revenue grew by 5% to RM1.05 billion, from RM1 billion.
The bank declared an interim single-tier dividend of 15 sen per share.
For the first six months ended Dec 31, 2013 (1H FY14), Hong Leong Bank's net profit increased by 8% to RM1.06 billion, from RM985.63 million. Revenue rose 4% to RM2.08 billion, from RM2 billion.
The first-half result was supported by interest income and fee income growth, as well as higher profit contribution from associates, Hong Leong Bank managing director and CEO Tan Kong Khoon said in the press statement.
"All key business drivers remained robust with improved growth momentum, reflecting our strong underlying operations. In particular, gross loans for the group surpassed the RM100 billion mark," he said.
Commenting on business outlook, Tan said despite signs of improving external conditions, domestic demand could see slight moderation as concerns over price escalation. "The group will remain cautious and strive for sustainable profitability," he said.