- Hong Leong Bank (HLB) reported a 59.8 percent increase in net profit to RM549.9 million for 2Q17, mainly attributable to higher net income, lower operating expenses and a lower charge on allowance for impairment losses on loans, advances and financing. Revenue for the quarter climbed 9.3 percent to RM1.2 billion.
- The group has proposed a first interim dividend of RM0.15 per share.
- Cumulatively, HLB’s 1H17 revenue rose 8.5 percent to RM2.3 billion while underlying core net profit grew 11.8 percent to RM1.1 billion.
- The group’s gross loans and financing expanded 4.6 percent to RM123.4 billion underpinned by growth in its domestic retail and small and medium enterprises (SMEs) segments. Asset quality remained stable with a gross impaired loan ratio of 0.86 percent.
Significance: HLB commented that the group is concentrating on other areas besides residential mortgages and SMEs to improve its growth potential. It expects net interest margin to be more than two percent for FY17 driven by low pricing and better cost of fund management.