HLFG Reports Positive 1QFY18 Results

Hong Leong Financial Group Berhad (HLFG) has announced its first quarter results for the period ended 30 September 2017. The Group’s profit before tax grew 15.8% year-on-year (y-o-y) to RM840 million (mn) due to stronger contributions from both our commercial banking and insurance businesses. Its book value per share also increased from RM14.52 as of 30 June 2017 to RM14.91 by 30 September 2017.

Hong Leong Financial Group’s President & Chief Executive Officer, Tan Kong Khoon commented: “We are pleased to have made a strong start in 1QFY18 for our new financial year. Our core businesses continue to show strong credit and liquidity risk metrics which are important in these times.”

HLFG’s Commercial Banking division, Hong Leong Bank’s (HLB) profit before tax grew 15.7% y-o-y to RM780 mn due to higher net interest income as well as higher associate contribution from the Bank of Chengdu.

Net interest income expanded 10.5% y-o-y to RM886 mn in 1QFY18, aided by both loan growth and an improvement in net interest margin (NIM). NIM improved 12bps y-o-y to 2.13%, reflecting prudent loan pricing and funding cost management.

Residential mortgages increased 9.9% y-o-y to RM58.0 billion (bn) as at 30 September 2017. Loans to SMEs grew 6.5% y-o- y to RM20.6 bn. HLB’s Loan/Deposit ratio remained sound at 81.8% as at 30 September 2017, remaining among the lowest in the industry.

Asset quality continued to be strong with the gross impaired loans ratio standing at 0.98% as at 30 September 2017. Loan impairment coverage remained sound at 96%. Inclusive of the regulatory reserve set aside as at 30 September 2017, HLB’s loan impairment coverage ratio would be higher at 148%.

Cost/Income ratio improved to 43.0% in 1QFY18, at the lower end of the industry range, as revenue growth outpaced expense growth.

Meanwhile, HLA Holdings Sdn Bhd, HLFG’s insurance division, recorded a pretax profit of RM60.6 mn in 1QFY18, which is an increase of 13.1% y-o- y. This is mainly due to lower actuarial reserves arising from higher interest rates and business growth.

Hong Leong Assurance Berhad’s (HLA) new business premiums of regular premiums increased by 9.2% y-o-y to RM139.3 mn in 1QFY18. HLA’s management expense ratio was 6.7% in 1QFY18, which is still among the lowest in the industry.

Finally, the Investment Banking division under Hong Leong Capital Berhad, recorded a steady pretax profit of RM18.4 million in 1QFY18.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

XSD partners with NEFIN to power up its plant with solar energy in Malaysia

Integrated papermaking specialist, XSD International Paper Sdn Bhd (XSD) has entered into a power purchase agreement (PPA) with NEFIN Group (NEFIN). 

Sunway’s Food for Thought Campaign to aid urban poor in Klang Valley

Sunway has embarked on its Food for Thought campaign, targeting to distribute 4,050 packed meals to the urban poor in the Klang...

Bursa Malaysia records RM272.9 million profit after tax

Bursa Malaysia Berhad has recorded a Profit After Tax and Minority Interest (“PATAMI”) of RM272.9 million for the nine-month financial period ended...

Employment Hero launches in Malaysia to support SMEs during CMCO

Employment Hero, an Australian people management platform, announced its expansion into Malaysia to empower local SMEs during the government-mandated work-from-home directive during...

PropertyGuru: Youth, first-time home seekers priorities in Budget 2021

According to PropertyGuru Malaysia, the Budget 2021 should focus on job creation and economic drivers, particularly for youth and first-time home seekers,...

Must read

Agriculture at a crossroad – making that quantum leap

By Jason Loh, Agriculture in Malaysia is arguably at a pivotal crossroad and whether or not it’ll enjoy sustained...

Revitalise the property market for the benefit of all Malaysians

By Wong Siew Lai, General Manager – Malaysia and General Manager - Marketing & Communications, iProperty.com Malaysia Sdn Bhd

Underemployment anxiety needs to be given serious attention

By Sofea Azahar, It is very unfortunate to witness that the unprecedented twin crisis – health and economic –...

How 5G can help us build the urban future

Sunway Group is leading the way to create smart and sustainable cities with great potential As centres of...