KUALA LUMPUR, 26 February 2020 – Hong Leong Bank Berhad (“Bank” or “HLB”), today announced its results for the six months ended 31 December 2019 (“H1FY20”).
- Core net profit after tax for H1FY20 rose 6.6% to RM1,390 million, compared against the corresponding period last year which excluded a one-off gain from divestment of joint venture.
- Gross loans and financing accelerated 7.3% year-on-year (“y-o-y”) to RM141.3 billion while sustaining solid asset quality metrics with Gross Impaired Loan (“GIL”) ratio of 0.84%.
- Healthy capital position with Common Equity Tier 1 (“CET 1”), Tier 1 and Total Capital ratios at 13.1%, 13.7% and 15.9% respectively.
“The Bank achieved a commendable set of results for Q2FY20 and H1FY20 on the back of strong top line growth, vigilance in cost management and solid contributions from our associates. Core net profit of RM1,390 million for H1FY20 demonstrated a resiliency in our performance with a convincing 6.6% growth compared to RM1,304 million in the corresponding period last year.”
Domenic Fuda, Group Managing Director and Chief Executive Officer of Hong Leong Bank
Despite the prevailing cautious business sentiment, gross loans and financing continues to gain traction with a 7.3% y-o-y growth, which was further complemented by firm asset quality metrics, reflective of the Bank’s commitment towards achieving sustainable long-term growth.”
The Bank’s focus on growing strategic segments of retail and corporate loans (including SME) remains intact, although the environment is more challenging than it was a quarter ago. HLB is seeing encouraging results in new initiatives such as renewable energy financing, where there is a structural shift in the economy towards more environmentally sustainable energy sources. Efforts towards growing this sector have been positive as evidenced by the over RM300 million in financing which had been approved in the first half of the financial year.
In other segments, Hong Leong Bank continues to see good results from its HLB DuitSmart financial sustainability initiative which was launched on Malaysia Day. HLB has rolled this out in a number of states nationwide with the HLB DuitSmart roadshows successfully reaching out to the public and is set to further increase the financial literacy of Malaysians as the Bank looks to taking this initiative nationwide.
Hong Leong Bank continues its focus on enhancing its cashless payment options for retail consumers during its HoliYay campaign which saw HLB partnering with amongst others, AirAsia and Emirates. Holders of selected HLB credit and debit/i-cardholders enjoyed exclusive deals on selected destinations during promotion periods, discounts on economy and business class flights, discounts on hotel bookings worldwide, cashback while dining overseas amongst a host of other special offers and rewards during the campaign period.
On the business segment front, HLB has expanded the sector specialist capabilities so that it has the capabilities for greater sector insights when evaluating new credit applications as well as reviewing exposures to existing sectors. This augurs well for the Bank’s continued credit quality management.