International Finance

Hong Leong Bank net profit drops 8.1% to RM633.89 mn

The bank's revenue dropped 7.1% to RM1.166 bn from RM1.256 bn while loan growth momentum accelerated

Hong Leong Bank’s net profit dropped 8.1 percent to RM633.89 million from RM690.03 million a year ago, The Star reported. The Bank announced on Tuesday that its revenue dropped 7.1 percent to RM1.166 billion from RM1.256 billion.

Hong Leong Bank is Malaysia’s fifth-largest bank. Earnings per share was  30.98 sen compared with 33.73 sen. Hong Leong Bank group managing director and CEO Domenic Fuda said,‘loan growth momentum’ for the Bank accelerated to 6.5 percent year-on-year to RM133.6 billion against the background of economic challenges. The Bank’s strong efforts to ‘uphold its solid asset quality’ signifies its commitment toward producing ‘sustainable results to its stakeholders.

In the third quarter last year, the Bank picked up its net interest margin to 2 percent.

“Net profit after tax for the third quarter and nine months achieved RM634mil and RM2.028bil respectively, attributed to a healthy expansion in loan book despite lingering concerns in the operating environment, outstanding asset quality as well as consistently strong contribution from our associates,” he said

The Bank’s healthy performance largely reflects on its vision to develop  its product offerings. For example: the recent launch of its co-branded Emirates HLB cards. The cards are designed to boost its payments business by capitalising on the booming Malaysian tourism industry.

For the nine months,  Hong Leong Bank’s net profit rose by 0.8 percent to RM2.028 billion from RM2.012 billion in the previous corresponding period. The Bank’s  revenue dropped 2.8 percent to RM3.558 billion from RM2.663 billion.

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