PETALING JAYA: Hong Leong Bank Bhd (HLB) recorded a net profit of RM2.38bil in the nine-month period ended March 31, 2022 (9M22), which was 9.69% higher compared with RM2.17bil in the same period in 2021.

       In a statement, the bank said the improved result was underpinned by solid loan and financing growth, effective cost management, lower loan impairment allowances and robust associate contribution.

       Over the same period, the bank reported revenue of RM4.1bil, which represented a marginal decrease from RM4.13bil in the comparative period due to lower non-interest income contribution negating the higher net interest income.

       For the third quarter period (3Q22), HLB recorded a net profit of RM784.8mil and revenue of RM1.35bil as compared with net profit of RM771.47mil and revenue of RM1.39bil in 3Q21, representing an increase of 1.73% and a decrease of 2.72% respectively.

       According to the bank, net interest income in 9M22 was up 9.1% year-on-year (y-o-y) to RM3.46bil on solid loan and financing growth and funding cost optimisation in the recent third quarter.

       Meanwhile, net interest margin stood at 2.16% for the period ended March 31.

       For the third quarter period (3Q22), HLB recorded a net profit of RM784.8mil and revenue of RM1.35bil as compared with net profit of RM771.47mil and revenue of RM1.39bil in 3Q21, representing an increase of 1.73% and a decrease of 2.72% respectively.

       “Gross loans and financing expanded by 6.3% y-o-y, led by the continuing expansion in our mortgage, SMEs and corporate businesses portfolio, in line with the overall trajectory of economic growth.

       “While we are steadfast in extending the necessary financial assistance to our clients, we consistently aim to maintain strong asset quality across all loan portfolios through our robust credit framework.

       “Consequently, we have attained an overall gross impaired loan ratio of 0.48%, coupled with sufficient loan impairment coverage buffer of 217.8%,” said HLB’s group managing director and CEO Domenic Fuda.

       Over at the bank’s holding company, Hong Leong Financial Group Bhd (HLFG)’s net profit for 9M22 was RM1.78bil, 5.06% higher than RM1.69bil in the same period in the previous year on the back of higher contribution from HLB. However, insurance unit HLA Holdings Sdn Bhd and investment banking arm Hong Leong Capital Bhd recorded lower contributions.

       Revenue for HLFG in that period came in at RM4.61bil, 1.95% lower from the previous year. HLFG president and CEO Tan Kong Khoon said the Malaysian outlook has improved although there remains uncertainty and downside risks from inflationary pressures, persistent global supply chain disruptions, fallout from the armed conflict in Europe and a slowdown in China’s economy.

       “Against this uncertain global backdrop, the group continues to deliver steady performance in 9M22.

       “Bank Negara ’s recent 25 basis points increase in the overnight policy rate may be mildly positive to our commercial banking business but the upward inflation trend would most likely put some pressure on our operating cost that calls for more stringent cost discipline going forward,” he said.