KUALA LUMPUR: Hong Leong Bank Bhd posted a set of strong results in the third quarter ended March 31, 2021 and for the nine months of its fiscal year ended June 30, 2021, on sustained growth in loans and financing.
In a statement, the group said its third quarter net profit increased 44.2% to RM771.47mil from RM534.79mil a year ago, while revenue increased 22.6% to RM1, 39bil against RM1.13bil.
Earnings per share rose to 37.68 sen from 26.13 sen.
Hong Leong Bank said that for the nine-month period, net profit increased 12.8% to RM 2.17 billion from RM 1.93 billion in the previous corresponding period, supported by strong revenue growth, lower operating expenses and strong contributions from its associates.
Revenue for the period increased 15.4% to RM 4.13 billion from RM 3.58 billion previously. Since the start of the year, its return on equity has stood at 10.4%.
Gross loans and financing maintained their growth momentum, increasing by 7.3% year-on-year to RMB 152.8 billion thanks to the rebound in economic activities, driven by improved spending in the private and public sectors, and accompanied by financing paid to SMEs and businesses.
“Asset quality remained robust with a stable gross impaired loan (GIL) ratio of 0.53%, well below the industry average, coupled with a strong credit impairment coverage ratio of 205%.
“Capital and liquidity positions continue to be healthy with Tier 1, Tier 1 and total capital ratios stable at 13.0%, 13.5% and 15.7%, respectively, while the loan-to-deposit ratio and liquidity coverage ratio have been managed cautiously at 83.6% and 147.7%, respectively, ”he said.
Meanwhile, Hong Leong Financial Group BhdRMB net profit reached RMB 577.27 million in the third quarter, compared to RM 339.20 million a year ago due to higher contribution from all divisions, while revenue increased to 1.58 billion RM against 1.14 billion RM previously.