Hong Leong Financial Group Bhd. reported a year-over-year increase in net profit for the fiscal third quarter ended March 31 amid a sharp decline in impairments.
The group said May 30 that net profit attributable to owners of the parent rose to 502.6 million Malaysian ringgit from 418.7 million ringgit in the prior-year period. EPS climbed to 43.9 sen from 36.6 sen.
Net interest income slipped to 705.7 million ringgit from 719.2 million ringgit, while net income from Islamic banking business inched up to 166.7 million ringgit from 139.3 million ringgit. Noninterest income grew to 514 million ringgit from 367.1 million ringgit.
The group's operating profit before allowances increased to 793.8 million ringgit from 672.9 million ringgit. Meanwhile, allowance for impairment losses on loans, advances and financing and other losses dropped to 12.6 million ringgit from 45.9 million ringgit a year earlier.
For the nine months to March 31, the group's net profit attributable to owners came to 1.45 billion ringgit, from 1.25 billion ringgit in the year-ago period. EPS for the period inched up to 127.1 sen from 109.1 sen.
The group declared a second interim dividend of 27 sen per share, from 25 sen per share in the year-ago period. Together with a first interim dividend of 13 sen per share, the group's total dividend amounted to 40 sen per share, from 38 sen per share in the prior-year period.
Over at Hong Leong Bank Bhd., net profit attributable to owners of the parent for the third quarter amounted to 690 million ringgit, up year over year from 569.5 million ringgit. EPS went up to 33.7 sen from 27.8 sen.
Net interest income slightly increased to 713.5 million ringgit from 726.4 million ringgit, while net income from the Islamic banking business inched up to 166.7 million ringgit from 139.3 million ringgit. Operating profit before allowances grew to 729.4 million ringgit from 622.9 million ringgit.
For the nine-month period, the bank's net profit attributable to owners rose to 2.01 billion ringgit, or 98.2 sen per share, from 1.66 billion ringgit, or 81.2 sen per share.
Before deducting dividends, the group's total capital ratio came in at 15.264% as of March 31, down from 16.280% at the end of June 2017. Its common equity Tier 1 and Tier 1 ratios for the period were 12.015% and 12.705%, respectively, both down from 13.788% and 14.193%, respectively, as of June 30, 2017.
After deducting the proposed dividends, the group's total capital adequacy ratio slipped to 15.264% at the end of March from 15.779% at the end-June 2017 period. The group's common equity Tier 1 and Tier 1 ratios came in at 12.015% and 12.705%, respectively, both down from 13.286% and 13.691%, respectively, over the same period.
As of May 29, US$1 was equivalent to 3.98 Malaysian ringgit.
