KUALA LUMPUR, Aug 28 — Hong Leong Bank Bhd’s net profit for the financial year ended June 30, 2020 (FY20) fell to RM2.49 billion from RM2.66 billion a year ago.
Revenue, however, rose to RM4.78 billion from RM4.72 billion previously, it said in a filing with Bursa Malaysia today.
Gross loans and financing recorded a 6.1 per cent year-on-year (y-o-y) growth to RM145.9 billion, with asset quality remaining solid, reflected by a lower gross impaired loan ratio at 0.61 per cent.
Group managing director and chief executive officer Domenic Fuda said: “The financial year delivered some unprecedented challenges and required us to respond quickly to the evolving health and economic situation so that we remain resilient and well-positioned to support all of its stakeholders.
“Net profit whilst adversely affected from ongoing headwinds, overnight policy rate cuts and one-off modification loss due to the loan/financing moratorium initiatives, the underlying performance was resilient with good contribution from loan/financing growth and higher treasury and investment income.”
For the fourth quarter ended June 30, 2020, Hong Leong Bank’s net profit decreased to RM569.41 million compared with RM636.45 million a year ago, while revenue rose to RM1.19 billion from RM1.16 billion previously.
The board has recommended a final dividend of 20 sen per share, bringing the total dividend to 36.0 sen per share for FY20, with a dividend payout ratio of 30 per cent, as the bank exercises prudence in the management of its capital in view of the current environment.
On prospect, Fuda said the ‘new normal’ operating environment would no doubt present new growth opportunities which the bank will endeavour to capture by being agile and responsive to the changing landscape.
“Concurrently, we continue to revamp our cost structure, enabling us to invest in growth opportunities and deliver sustainable outcomes to our stakeholders,” he added. — Bernama
