KUALA LUMPUR: Hong Leong Financial Group Bhd (HLFG) reported a 9% drop in its first quarter net profit from a year earlier, mainly on lower insurance income.
In a filing with Bursa Malaysia yesterday, HLFG said net profit fell to RM392.16 million in the first quarter of financial year 2014 ended Sept 30 (1QFY14), from RM430.19 million. Revenue was lower at RM1.08 billion versus RM1.17 billion.
“The overall decrease was mainly due to lower contribution from the insurance division,” HLFG said.
Group revenue and profit fell, despite higher net interest and net Islamic banking income. HLFG’s income statement showed net interest income rose to RM685.3 million from RM607.22 million. Net Islamic banking income was higher at RM110.05 million compared with RM108.35 million.
Non-interest income — which included insurance earnings — fell to RM288.17 million from RM457.26 million.
Despite a lower first quarter financial year 2014 (1QFY14) profit and revenue, HLFG declared an interim single-tier dividend of 13 sen a share for the quarter. The stock will trade ex-dividend on Dec 8 this year.
In a separate statement, Hong Leong Bank Bhd reported that 1QFY14 net profit rose 0.6% to RM547.57 million from RM544.49 million a year earlier. Revenue was higher at RM1.03 billion versus RM1.01 billion. HLFG owns a 64.37% stake in Hong Leong Bank.
This article first appeared in The Edge Financial Daily, on November 26, 2014.