KUALA LUMPUR: Hong Leong Bank Bhd’s (HLBB) net profit for 1QFY12 ended Sept 30 surged 58.28% to RM407.11 million from RM257.2 million a year ago, having consolidated the earnings from its acquisition of EON Capital Bhd’s (EONCap) assets and liabilities.
In a filing with Bursa Malaysia yesterday, HLBB said its pre-tax profit rose 65.05% to RM523.84 million from RM317.38 million due to several factors, including higher net income and a higher share of profit from Bank of Chengdu but partly offset by higher operating expenses.
Interest income in 1QFY12 rose 87.26% to RM1.328 billion from RM709.5 million while net income grew 69.83% to RM916.73 million from RM539.78 million.
This included net interest income growth of 71.64% to RM644.25 million, other operating income rising 50.02% to RM176.43 million and net income from Islamic banking business doubling to RM96.03 million.
Yvonne Chia, HLBB group managing director and chief executive, said in a press statement the enlarged and more diversified earnings performance following the merger with EONCap had enhanced the group’s resilience and profit sustainability.
HLBB’s Treasury business was affected by volatile movements in the yield curve, she added.
Earnings per share was 28 sen while net assets per share was RM5.41 as at Sept 30, 2011.
According to HLBB’s press statement, its gross loans grew 112% year-on-year to RM85.4 billion while deposits grew 62% y-o-y to RM114.2 billion. Loan-to-deposit ratio was 74.7%.
Net interest margin improved five basis points to 2.49% while gross impaired loans ratio improved 15 basis points to 2.1%.
Quarter-on-quarter, HLBB’s net profit grew 37.25% to RM407.11 million from RM296.6 million while pre-tax profit rose 37.68% to RM523.84 million from RM380.469 million.
This was mainly due to higher net income and lower operating expenses, offset by lower share of profit from Bank of Chengdu and higher allowance for impaired loans.
Net income grew 11.68% to RM916.73 million from RM820.792 million a quarter ago.
Chia said HLBB remains focus on its final push in integrating HLBB and EONCap and looks forward to unlocking some of the identified synergies at both the cost and revenue levels in the coming quarters.
“The global events this quarter continue to exert downward pressure on growth and the macroeconomic health in key economies in the West continue to experience destabilising elements.
“We are cautiously optimistic that opportunities from domestic consumption and private investments, coupled with the broad resilience of Asian economies, will counteract the downside risks on global trade flows,” Chia said.
HLBB shares closed down two sen yesterday at RM10.40 with 770,800 shares traded.
This article appeared in The Edge Financial Daily, November 30, 2011.
In a filing with Bursa Malaysia yesterday, HLBB said its pre-tax profit rose 65.05% to RM523.84 million from RM317.38 million due to several factors, including higher net income and a higher share of profit from Bank of Chengdu but partly offset by higher operating expenses.
Interest income in 1QFY12 rose 87.26% to RM1.328 billion from RM709.5 million while net income grew 69.83% to RM916.73 million from RM539.78 million.
This included net interest income growth of 71.64% to RM644.25 million, other operating income rising 50.02% to RM176.43 million and net income from Islamic banking business doubling to RM96.03 million.
Yvonne Chia, HLBB group managing director and chief executive, said in a press statement the enlarged and more diversified earnings performance following the merger with EONCap had enhanced the group’s resilience and profit sustainability.
HLBB’s Treasury business was affected by volatile movements in the yield curve, she added.
Earnings per share was 28 sen while net assets per share was RM5.41 as at Sept 30, 2011.
According to HLBB’s press statement, its gross loans grew 112% year-on-year to RM85.4 billion while deposits grew 62% y-o-y to RM114.2 billion. Loan-to-deposit ratio was 74.7%.
Net interest margin improved five basis points to 2.49% while gross impaired loans ratio improved 15 basis points to 2.1%.
Quarter-on-quarter, HLBB’s net profit grew 37.25% to RM407.11 million from RM296.6 million while pre-tax profit rose 37.68% to RM523.84 million from RM380.469 million.
This was mainly due to higher net income and lower operating expenses, offset by lower share of profit from Bank of Chengdu and higher allowance for impaired loans.
Net income grew 11.68% to RM916.73 million from RM820.792 million a quarter ago.
Chia said HLBB remains focus on its final push in integrating HLBB and EONCap and looks forward to unlocking some of the identified synergies at both the cost and revenue levels in the coming quarters.
“The global events this quarter continue to exert downward pressure on growth and the macroeconomic health in key economies in the West continue to experience destabilising elements.
“We are cautiously optimistic that opportunities from domestic consumption and private investments, coupled with the broad resilience of Asian economies, will counteract the downside risks on global trade flows,” Chia said.
HLBB shares closed down two sen yesterday at RM10.40 with 770,800 shares traded.
This article appeared in The Edge Financial Daily, November 30, 2011.
