KUALA LUMPUR, May 30 — Hong Leong Bank Bhd’s (HLB) net profit in the third quarter ended March 31, 2022 (Q3 2022) increased marginally to RM784.79 million from RM774.46 million in Q3 2021, thanks to a higher share of profit from its subsidiaries, among others.
Revenue stood at RM1.35 billion during the quarter under review, compared with RM1.39 billion previously, the bank said in a filing with Bursa Malaysia today.
Group managing director and chief executive officer, Domenic Fuda said gross loans and financing maintained grew by 6.3 per cent year-on-year (y-o-y) to RM162.5 billion, due to the continuing expansion in HLB’s mortgage, small and medium enterprises and corporate businesses portfolio, in line with the overall economic growth trajectory.
“While we are steadfast in extending the necessary financial assistance to our clients, we consistently aim to maintain strong asset quality across all loan portfolios through our robust credit framework.
“Consequently, we have attained an overall Gross Impaired Loan (GIL) ratio of 0.48 per cent, coupled with sufficient loan impairment coverage buffer of 217.8 per cent,” he said in a separate statement.
Meanwhile, Hong Leong Financial Group Bhd posted a slightly higher net profit of RM577.48 million in Q3 2022, compared with RM577.27 million in Q3 2021, while revenue reduced marginally to RM1.50 billion from RM1.58 billion previously.
The group’s performance was driven by higher contributions from HLB, while the insurance division, HLA Holdings Sdn Bhd and the investment banking division, Hong Leong Capital Bhd (HLCB) recorded lower contributions.
In a separate filing, HLCB said its net profit fell to RM19.98 million in Q3 2022 from RM40.62 in Q3 2021, amid a 43.4 per cent lower pre-tax profit of RM26.5 million due to lower non-interest income earned of 38.8 per cent.
Its revenue also contracted to RM73.61 million in Q3 2022, from RM101.31 million previously, it said.
On outlook, Fuda said HLB is committed to emphasising innovation as well as building products and service propositions for its customers that ring true to the company’s brand promise, “Built Around You”.
Aligned with the pickup in economic activities and the transition to the endemic phase, HLB is resolute in providing the necessary and timely financial assistance to both existing and new clients to ensure that they can concentrate on their recovery efforts, he said.
“The evolving business backdrop will undoubtedly present us with new growth opportunities, which we will strive to capture by swiftly adapting to the constantly changing circumstances and being disciplined in our investments and expenditures that will deliver sustainable outcomes to our stakeholders.
“The bank is also committed to promoting and integrating environmental, social and corporate governance considerations into our business practices, as we believe sustainable banking practices will serve as the foundation to our continued competitive advantage in the long-term,” he added. — Bernama
