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Hong Leong Bank Q4 Profit up 4.4%, Overcomes Net Interest Income Dip

The Malaysian Reserve ·  Mar 2 21:10

Hong Leong Bank Bhd (HLB) reported a 4.4% increase in net profit for the second quarter ending Dec 31, 2023 (Q223), attributed to higher contributions from associate companies and write-backs from provisions.

The net profit reached RM1.087 billion for 2QFY2024, up from RM1.042 billion a year ago.

Despite a decline in net interest income, the group declared an interim dividend of 25 sen.

For the first half of the fiscal year (1HFY2024), HLB's net profit grew 4.7% to RM2.117 billion, with a 3.7% decrease in net interest income.

The bank's efforts in loan portfolio expansion and effective asset and liability management resulted in a net interest margin improvement to 1.85%, and a cost-to-income ratio of 39.7%.

HLB's gross loans and financing portfolio increased by 7.5% to RM185.2 billion in 1HFY2024.

The group's return on equity stood at 12.2%, with a stable gross impaired loan ratio of 0.56% and a loan impairment coverage ratio of 163.4%.

Meanwhile, Hong Leong Financial Group Bhd (HLFG), owning 64% of HLB, reported a 2.5% growth in net profit to RM831.87 million for 2QFY2024.

Despite a 0.4% decrease in net interest income, HLFG declared an interim dividend of 18 sen.

For 1HFY2024, net profit grew 6.2% to RM1.573 billion, while net interest income fell by 3.4%.

HLFG's President and CEO, Tan Kong Khoon, noted the positive financial performance in 1HFY2024 despite macroeconomic challenges.

He expressed caution for 2HFY2024 due to ongoing uncertainty, maintaining a focus on strategic priorities, including asset quality, cost control, and technology investment.

HLB shares traded at RM19.62, up by 2 sen or 0.10% today, , while HLFG shares gained 8 sen or 0.48% at RM16.68.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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