KUALA LUMPUR (Aug 29): Hong Leong Bank Bhd's net profit in the fourth quarter ended June 30, 2016 fell 9.16% to RM558.54 million or 29.28 sen per share from RM614.85 million or 34.8 sen per share a year ago, on higher operating expenses and taxation.

This was despite a write back of RM51.36 million on impairment losses on loans, advances and financing.

A bourse filing today showed that its quarterly total income, however, rose 3.85% to RM1.08 billion from RM1.04 billion.

Hong Leong Bank has proposed a final dividend of 26 sen per share, bringing total dividend for FY16 to 41 sen, according to a statement attached to its financial results.

For the full year (FY16), Hong Leong Bank's net profit fell 14.8% to RM1.9 billion or 99.79 sen per share from RM2.23 billion or 126.4 sen per share a year earlier.

Total income rose 2.7% to RM4.18 billion from RM4.07 billion in FY15.

In a statement today, Hong Leong Bank group managing director cum chief executive officer Domenic Fuda said the net profit for FY16 was impacted by a one-off mutual separation scheme cost (MSS) of RM172 million during the financial year.

On the bank's prospects, he said the macro landscape remains challenging amid subdued global demand.

"However, domestic demand will remain the main growth pillar supporting continued expansion in the Malaysian economy. Competition as well as subdued loan and deposit growth will continue to put pressure on margins," he added.

At 12.30pm, Hong Leong Bank traded unchanged at RM13.10, giving it a market capitalisation of RM28.4 billion.