Hong Leong Bank sees FY19 loan growth at more than 5%

Hong Leong Bank Group MD & CEO Dominic Fuda at the Hong Leong Bank media briefing on the announcement of the company’s second quarter of the Financial Year 2019 (Q2 FY2019). Photos by Mohd Suhaimi Mohamed Yusuf

Hong Leong Bank CFO Foong Pik Yee at the Hong Leong Bank media briefing on the announcement of the company’s second quarter of the Financial Year 2019 (Q2 FY2019).

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KUALA LUMPUR (Feb 26): Hong Leong Bank Bhd expects to achieve loan growth of more than 5% for financial year ending June 30, 2019 (FY19), mainly driven by the retail and business banking segments. 

"If the momentum continues as (we have seen in) January and February, so far it looks quite good, thus we should do better than 5% (loan growth for FY19)," Hong Leong Bank group managing director and chief executive officer Domenic Fuda said here today at a media briefing to announce the group’s 2QFY19 and 1HFY19 financial results.

Earlier, Hong Leong Bank said in a statement to Bursa Malaysia that the bank's 2QFY19 net profit rose to RM687.25 million from RM683.07 million a year earlier, while revenue fell to RM1.14 billion from RM1.23 billion.

For 1HFY19, Hong Leong Bank said cumulative net profit climbed to RM1.39 billion from RM1.32 billion a year earlier, while revenue was lower at RM2.39 billion versus RM2.41 billion.

"Net interest income came in lower at RM1,716 million (RM1.72 billion) against the corresponding period in the previous year, underpinned mainly by rising funding cost from deposit competition during the period under review. 

"Gross loans, advances and financing grew 4.8% y-o-y to RM131.6 billion, on the back of cautious business sentiments and a challenging economic environment. Overall loan growth was predominantly driven by expansion in our mortgages and domestic business segments, as well as overseas operations," Hong Leong Bank said.