KUALA LUMPUR (Nov 29): HONG LEONG BANK BHD []'s earnings rose 58.3% to RM407.11 million in the first quarter ended Sept 30, 2011 from RM257.20 million a year ago following the consolidation of the enlarged group after the acquisition of EON CAPITAL BHD [].
It said on Tuesday that revenue increased by 69.8% to RM916.73 million from RM539.78 million while earnings per share were 27.98 sen compared with 17.72 sen.
HL Bank group managing director and chief executive Yvonne Chia said the banking group started the financial year ending June 30, 2012 on a sound note.
'Quarterly net profit after tax crossed the RM400 million threshold, closing at RM 407 million for the first quarter ended Sept 30, 2011. Against the corresponding quarter last year, net profit rose 58% as we fully consolidate the earnings of the merged banking group starting this quarter.
'The results are broadly in line with the market's consensus earnings estimates for the group. With the merger, the enlarged, more diversified earnings performance enhances the group's resilience and profit sustainability as we move into a more moderate economic environment,' she said.
Chia said the banking group's gross loan book expanded 1.4% quarter-on-quarter, led by a 3.3% and 2.9% on-quarter growth in loans for the purchase of residential and non-residential PROPERTIES [] respective.
Loans for the purchase of transport vehicles rose 1.2% on-quarter while loans to SMEs expanded 2.1% in the same period. Working capital loans retreated marginally reflecting seasonality patterns.
"The revenue base has expanded in tandem, with net income coming in at RM 917 million, up 70% against the same period last year. Net interest income itself rose 72%, while non-interest income grew by 50%. Net income from the Islamic banking business doubled against the same period last year.
'Overall, the revenue base has not only significantly strengthened but also more resilient and diversified. The treasury business has been affected by the volatile movements in the yield curve,' Chia added.
It said on Tuesday that revenue increased by 69.8% to RM916.73 million from RM539.78 million while earnings per share were 27.98 sen compared with 17.72 sen.
HL Bank group managing director and chief executive Yvonne Chia said the banking group started the financial year ending June 30, 2012 on a sound note.
'Quarterly net profit after tax crossed the RM400 million threshold, closing at RM 407 million for the first quarter ended Sept 30, 2011. Against the corresponding quarter last year, net profit rose 58% as we fully consolidate the earnings of the merged banking group starting this quarter.
'The results are broadly in line with the market's consensus earnings estimates for the group. With the merger, the enlarged, more diversified earnings performance enhances the group's resilience and profit sustainability as we move into a more moderate economic environment,' she said.
Chia said the banking group's gross loan book expanded 1.4% quarter-on-quarter, led by a 3.3% and 2.9% on-quarter growth in loans for the purchase of residential and non-residential PROPERTIES [] respective.
Loans for the purchase of transport vehicles rose 1.2% on-quarter while loans to SMEs expanded 2.1% in the same period. Working capital loans retreated marginally reflecting seasonality patterns.
"The revenue base has expanded in tandem, with net income coming in at RM 917 million, up 70% against the same period last year. Net interest income itself rose 72%, while non-interest income grew by 50%. Net income from the Islamic banking business doubled against the same period last year.
'Overall, the revenue base has not only significantly strengthened but also more resilient and diversified. The treasury business has been affected by the volatile movements in the yield curve,' Chia added.
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