HLFG records higher Q3 revenue, net profit

HONG Leong Financial Group Bhd (HLFG) (1082) saw its third quarter net profit grow 7.5 per cent to RM141.92 million while revenue was up 3 per cent to RM542.37 million.

However, it said that profit before tax (PBT) was lower by 6.2 per cent to RM255 million for the period ended March 31 due to lower contributions from its commercial banking and insurance divisions.

The commercial banking unit recorded a drop of 3.3 per cent in PBT of RM260 million as a result of higher other operating expenses and higher allowance for losses on loans, advances and financing.

"This was mitigated by higher net interest income, higher share of profit in associate and higher net income from Islamic banking business," it told Bursa Malaysia yesterday.

The investment banking division recorded a higher PBT of RM4.6 million due to better business performance from stockbroking caused by higher volumes on the local stock exchange.

Meanwhile, the group's insurance division posted a pre-tax loss of RM1.6 million compared with a PBT of RM10 million a year ago, owing to the year-to-date adjustment for claims liabilities provided for under the risk-based capital framework.

For the nine-months to March 31, the group saw its net profit increase 1.2 per cent to RM445.9 million as revenue fell 2 per cent to 1.66 billion.

It said that its PBT dropped 7 per cent to RM859.2 million due to lower contributions from its commercial banking unit.

The commercial banking division saw its PBT fall 9 per cent to RM840.1 million for the nine-month period due to lower net interest income and non-interest income as well as higher other operating expenses.

"Barring unforeseen circumstances, the group is expected to perform satisfactorily for the current financial year," it said.

The board has also declared a second interim dividend of 8 sen per share less income tax of 25 per cent and 6.0 per share tax-exempt for the financial year ending June 30.

by btimes.com.my