KUALA LUMPUR (Nov 17): Hong Leong Bank Bhd reported an 8% drop in first quarter net profit from a year earlier, as net interest income fell. Profit also declined on bad loan allowance and higher operating expenses.
In a statement to Bursa Malaysia today, Hong Leong Bank said net profit fell to RM502.96 million, from RM547.57 million. Revenue however rose to RM1.02 billion, from RM1.01 billion.
"The group remains focused in executing our strategy in building a high performance business and strengthening the foundation for sustainable profitability," Hong Leong Bank said.
Hong Leong Bank's income statement showed net interest income fell to RM659.96 million, from RM715.4 million.
Operating expenses was higher at RM462.74 million, compared to RM429.14 million.
The group reported bad loan allowance of RM23.98 million, versus a write back of RM14.9 million.
In a separate statement, Hong Leong Bank said loans grew 11.5% from a year earlier. In quarterly terms, loans rose 2.6% from the preceding quarter.
The bank said its loan growth was in line with the industry, "despite the numerous headwinds".
At 12:30pm, Hong Leong Bank shares rose four sen or 0.3% to settle at RM13.78, for a market capitalisation of RM24.79 billion. The stock saw 334,500 shares done.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)