by PRIYA VASU/ FILE PIX
HONG Leong Financial Group Berhad records RM729 million net profit in its first quarter (1Q20) for the financial year ended September 30, 2020, driven by stronger contributions from all its operating businesses.
The lender’s revenue for the quarter rose to RM1.34 billion compared to RM1.21 billion posted in the same period last year.
Net income from its Islamic banking and Takaful businesses for the period was RM237.2 million, an increase of 10.2% y-o-y.
The contribution of the Islamic businesses to HLFG Group’s profit before tax was 17.4%.
Book value per share increased from RM18.43 as at 30 June 2020 to RM19.01 as at 30 September 2020.
“We had a good start in 1QFY21 amidst a highly challenging business environment. Despite both domestic and global economies being impacted by the on-going Covid-19 pandemic, we continue to show steady results across our core businesses,” said Hong Leong Financial Group’s president and CEO, Tan Kong Khoon said.
For commercial banking, HLB recorded a net profit after tax of RM728.9 million for the first quarter, increased 5.9% y-o-y, mainly supported by double-digit topline growth, prudent cost control and robust contributions from associates.
Apart from domestic growth, the Bank’s associated company, Bank of Chengdu, contributed 18.6% to the Bank’s pre-tax profit.
Loans grew better-than-market by 6.8% y-o-y to RM148.1 billion.
HLB domestic loans growth continues to outperform the industry; growing by 6.8% y-o-y to RM140.3 billion, while domestic loans to business enterprises increased by 8.4% y-o-y.
Its community banking initiative focusing on the SME segment continued its solid performance with a 37.9% y-o-y loan growth.
The bank’s insurance arm posted a profit after tax of RM100.2 million, an increase of 92.8% y-o-y, excluding a one-off prior year tax adjustment, the profit after tax increased by 7.3% y-o-y.
Its investment banking reported net profit increased 92.1% y-o-y to RM45.6 million given positive results from its stockbroking division in this period and a steady asset management business.
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