KUALA LUMPUR (Feb 27): HONG LEONG FINANCIAL GROUP BHD [] reported its net profit in the second quarter ended Dec 31, 2011 fell 70.3% to RM234.10 million from RM788.46 million mainly due to several one-off items being booked a year ago.
It said on Monday that its revenue fell 19.7% to RM1.043 billion from RM1.30 billion. Earnings per share were 22.60 sen compared with 76.10 sen.
For the first half, its net profit fell 56.2% to RM486.30 million from RM1.11 billion in the previous corresponding period while revenue was 5.3% lower at RM1.963 billion from RM2.073 billion.
Elaborating on the financial performance in 1H ended Dec 31, 2011, it said the decrease was mainly due to several one-off items being booked last year (1HFY11), namely a RM175 million one-off life insurance surplus transfer and a gain on the transfer of Hong Leong Assurance Berhad’s (HLA) general insurance business of RM619 million.
“Excluding these non-recurring one-off items, the ‘normalised’ profit before tax recorded a growth of 37.6% y-o-y in 1HFY12, driven positively by the results of HONG LEONG BANK BHD [],” it said.
It said that its commercial banking division, Hong Leong Bank achieved a growth in profit before tax of 48.7% on-year for 1HFY12.
“This was due to higher earnings from the enlarged banking group segments, lower allowances for impaired loans (decreased RM60.9 million on-year) and a higher share of earnings from 20%-owned associate Bank of Chengdu Co., Ltd (profit after taxation up 18.7% on-year),” it said.
HLFG said the growth was achieved despite one-time costs of RM115 million being booked for the recently concluded voluntary separation scheme exercise in December.
It said on Monday that its revenue fell 19.7% to RM1.043 billion from RM1.30 billion. Earnings per share were 22.60 sen compared with 76.10 sen.
For the first half, its net profit fell 56.2% to RM486.30 million from RM1.11 billion in the previous corresponding period while revenue was 5.3% lower at RM1.963 billion from RM2.073 billion.
Elaborating on the financial performance in 1H ended Dec 31, 2011, it said the decrease was mainly due to several one-off items being booked last year (1HFY11), namely a RM175 million one-off life insurance surplus transfer and a gain on the transfer of Hong Leong Assurance Berhad’s (HLA) general insurance business of RM619 million.
“Excluding these non-recurring one-off items, the ‘normalised’ profit before tax recorded a growth of 37.6% y-o-y in 1HFY12, driven positively by the results of HONG LEONG BANK BHD [],” it said.
It said that its commercial banking division, Hong Leong Bank achieved a growth in profit before tax of 48.7% on-year for 1HFY12.
“This was due to higher earnings from the enlarged banking group segments, lower allowances for impaired loans (decreased RM60.9 million on-year) and a higher share of earnings from 20%-owned associate Bank of Chengdu Co., Ltd (profit after taxation up 18.7% on-year),” it said.
HLFG said the growth was achieved despite one-time costs of RM115 million being booked for the recently concluded voluntary separation scheme exercise in December.
