KUALA LUMPUR (Feb 26): Hong Leong Financial Group Bhd (HLFG) reported today a 4.45% rise in second quarter net profit to RM502.96 million from RM481.55 million a year earlier on higher contribution from its operating divisions, which include businesses in the retail banking, insurance and stockbroking segments.

HLFG undertakes its retail banking operations via 61.82%-owned subsidiary Hong Leong Bank Bhd while HLFG's insurance business is placed under HLA Holdings Group. HLFG's 81.33%-owned subsidiary Hong Leong Capital Bhd runs the group's asset management, investment banking and stockbroking businesses.

In a statement to Bursa Malaysia today, HLFG said group revenue rose to RM1.36 billion in the second quarter ended Dec 31, 2019 (2QFY20) from RM1.25 billion in the previous year.

"The increase was mainly due to higher contribution from all the operating divisions. Barring unforeseen circumstances, the group is expected to maintain its performance in line with market conditions for the current financial year," HLFG said.

For 1HFY20, HLFG said cumulative group net profit climbed to RM993.16 million from RM987.24 million a year earlier while revenue was higher at RM2.69 billion versus RM2.63 billion.

For 2QFY20, HLFG said Hong Leong Bank recorded a profit before tax of RM857 million as compared to RM823.2 million in the previous corresponding quarter.

"HLA Holdings Group recorded a profit before tax of RM64.7 million for the current quarter ended Dec 31, 2019 as compared to RM58.7 million in the previous corresponding quarter, an increase of RM6.0 million or 10.2%.

"Hong Leong Capital Group recorded a profit before tax of RM23.0 million for the current quarter ended Dec 31, 2019 as compared to RM14.8 million in the previous corresponding quarter, an increase of RM8.2 million or 55.4%," HLFG said.

Hong Leong Bank and Hong Leong Capital also reported their financial results in separate statements to Bursa Malaysia.

Hong Leong Bank said 2QFY20 net profit rose to RM701.81 million from RM687.25 million a year earlier while revenue was higher at RM1.24 billion versus RM1.14 billion.

For 1HFY20, Hong Leong Bank's cumulative net profit, however, fell to RM1.390 billion from RM1.394 billion a year earlier although revenue rose to RM2.45 billion from RM2.39 billion.

Hong Leong Capital said 2QFY20 net profit rose to RM23.1 million from RM18.02 million a year earlier while revenue climbed to RM81.52 million from RM76.85 million.

For 1HFY20, Hong Leong Capital said net profit rose to RM46.82 million from RM42.05 million a year earlier while revenue was higher at RM171.33 million versus RM159.44 million.

At Bursa's 12:30pm break today, HLFG's share price settled down 10 sen or 0.63% at RM15.70 for a market capitalisation of RM17.98 billion. HLFG saw 203,900 shares traded.