KUALA LUMPUR (Aug 28): Hong Leong Financial Group Bhd (HLFG)'s net profit grew 76% to RM454.29 million in the fourth quarter ended June 30, 2018 (4QFY18) from RM258.79 million a year earlier due to higher contribution across all operating divisions.
The operating division comprises Hong Leong Bank Bhd, Hong Leong Capital Bhd and HLA Holdings Group. Hong Leong Capital undertakes investment banking, stockbroking and asset management operations while HLA is an insurer.
HLFG told Bursa Malaysia today that group revenue was up at RM1.32 billion from RM1.27 billion.
"Hong Leong Bank Group recorded a profit before tax of RM777.6 million for the current quarter ended June 30, 2018 as compared to RM680.0 million in the previous corresponding quarter, an increase of RM97.6 million or 14.4%. The increase was mainly due to higher revenue of RM24.4 million, higher share of profit from the Bank of Chengdu and Sichuan Jincheng Consumer Finance Joint Venture of RM11.7 million, lower allowance for impairment losses on loans, advances and financing of RM53.9 million, lower writeback of allowance for impairment losses on securities of RM3.2 million and lower operating expenses of RM4.4 million.
"Hong Leong Capital Group recorded a profit before tax of RM20.6 million for the current quarter ended June 30, 2018 as compared to RM18.4 million in the previous corresponding quarter, an increase of RM2.2 million or 12.0%. The increase was mainly due to higher contribution from the investment banking, stockbroking divisions and assets management," HLFG said.
According to HLFG, HLA's profit before tax increased to RM100.1 million from RM92.6 million on higher life fund surplus, lower operating expenses and higher revenue.
HLFG's full-year net profit and revenue rose from a year earlier. HLFG said the group achieved a higher net profit of RM1.91 billion from RM1.51 billion while revenue rose to RM5.35 billion from RM5.03 billion.
"Barring unforeseen circumstances, the group is expected to maintain its performance in line with market conditions for the next financial year," HLFG said.