SINGAPORE (April 27): Hong Leong Finance saw 1Q earnings rise 13.2% to S$16.5 million from a year ago, partly due to a decline in staff costs and a reduction in other operating expenses.

For the three months ended March, income before operating expenses logged in at S$39.9 million, up 0.4% from a year ago.

Total interest income/hiring charges decreased 11.5% to S$72.1 million from a year ago, but interest expense also registered a decrease of 18.4% to S$35.8 million.

Accordingly, net interest income/hiring charges marginally decreased by 3.3% to S$36.3 million, from the previous corresponding quarter.

Fee and commission income increased by 63.6% to S$3.7 million, with higher fee income from both lending and non-lending products.

Staff costs decreased by 6.8% mainly due to S$15.4 million lower provision for bonus and headcount.

A decrease of 14.0% to S$4.7 million in other operating expenses was due mainly to decrease in business promotion expenses.

Annualised earnings per share came to 14.83 cents, up from 13.11 cents a year ago.

Shares of Hong Leong Finance closed 1 cent higher at S$2.76.