Friday 29 Mar 2024
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KUALA LUMPUR (Feb 26): Hong Leong Financial Group Bhd (HLFG)'s second quarter net profit fell 3% to RM481.55 million from RM495.34 million a year earlier, due to lower contribution across all the operating divisions.

HLFG told Bursa Malaysia today that revenue fell to RM1.25 billion in the second quarter ended Dec 31, 2018 (2QFY19) from RM1.37 billion. HLFG said its operating divisions, Hong Leong Bank Group, HLA Holdings Group and Hong Leong Capital Group, reported lower profit before tax.

HLA is HLFG's insurance arm while Hong Leong Capital undertakes investment banking and stockbroking operations.

"Hong Leong Bank Group recorded a profit before tax of RM823.2 million for the current quarter ended Dec 31, 2018 as compared to RM833.1 million in the previous corresponding quarter, a decrease of RM9.9 million or 1.2%. HLA Holdings Group recorded a profit before tax of RM58.7 million for the current quarter ended Dec 31, 2018 as compared to RM91.8 million in the previous corresponding quarter, a decrease of RM33.1 million or 36.1%.

"Hong Leong Capital Group recorded a profit before tax of RM14.8 million for the current quarter ended Dec 31, 2018 as compared to RM19.0 million in the previous corresponding quarter, a decrease of RM4.2 million or 22.1%. The decrease was mainly due to lower contribution from the investment banking and stockbroking divisions," HLFG said.

For 1HFY19, HLFG said cumulative net profit rose to RM987.24 million from RM950.6 million a year earlier, while revenue was lower at RM2.63 billion versus RM2.64 billion.

"Barring unforeseen circumstances, the group is expected to maintain its performance in line with market conditions for the current financial year," HLFG said.

Hong Leong Bank Bhd and Hong Leong Capital Bhd also announced their financial results to Bursa today.

Hong Leong Bank said 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.

"The board of directors of Hong Leong Bank is pleased to declare an interim single tier dividend of 16.0 sen per share for the financial year ending June 30, 2019," Hong Leong Bank said.

Meanwhile, Hong Leong Capital said 2QFY19 net profit fell to RM18.02 million from RM20.68 million a year earlier, while revenue was lower at RM76.85 million versus RM81.04 million.

For 1HFY19, Hong Leong Capital said cumulative net profit rose to RM42.05 million from RM40.73 million a year earlier, while revenue was higher at RM159.44 million versus RM153.12 million.

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