KUALA LUMPUR: Hong Leong Bank Bhd's (HLB) net profit grew 18.5 per cent to RM929.96 million for the third quarter ended March 31, 2023 (3Q23) from RM784.8 million in the same quarter last year.
Its revenue increased to RM1.4 billion from RM1.35 billion previously, HLB said in a filing to Bursa Malaysia today.
As a result, the bank's earnings per share (EPS) rose to 45.39 sen from 38.32 sen in 3Q22.
HLB recorded a pre-tax profit of RM1.11 billion for the quarter, an increase of RM80.9 million or 7.8 per cent compared to previous corresponding quarter.
According to the bank, the increase in pre-tax profit was mainly due to higher net income of RM48.2 million, lower allowance for impairment losses on loans, advances and financing of RM13.3 million, higher share of profit from associated companies of RM60.4 million and written back of allowance for impairment losses on financial investments and other assets of RM0.1 million.
However, this was mitigated by higher operating expenses of RM41.1 million.
For the cumulative nine-month period (9MFY23), HLB's net profit rose 24 per cent to RM2.95 billion from RM2.38 billion in the previous corresponding period, while revenue increased to RM4.38 billion from RM4.1 billion.
Gross loans, advances and financing continue to deliver solid growth of 7.2 per cent year-on-year (YoY) to RM174.2 billion, driven by expansion in its key segments of mortgages, small and medium enterprise (SME) and commercial banking, as well as overseas operations.
As at March 31, 2023, the bank maintained its prudent approach with liquidity coverage ratio (LDR) of 84 per cent, whereas LCR remained well above the regulatory requirements at 140 per cent.
The bank's asset quality positions remained healthy with a stable gross impaired loan (GIL) ratio of 0.52 per cent whilst loan impairment coverage (LIC) ratio stood comfortably at 197 per cent as at March 31, 2023.
Reviewing the bank's performance, managing director and chief executive officer Domenic Fuda said HLB remained cautiously optimistic with the business outlook for the remainder of 2023 and was pleased with the solid underlying performance of the bank year-to-date.
He said this was underpinned by healthy loan and financing growth, solid asset quality and prudent funding and liquidity positions amid a slowing global landscape further challenged by the recent US and European banking sector turmoil which has heightened downside growth risks and highlighted financial stability risks.
On its outlook, Fuda said HLB was constantly developing and tailoring its banking solutions to its customers with the objective of optimising customer experience, in the journey to be a highly digital and innovative Asean financial services institution.
"Our initiatives are all anchored on our brand promise of 'Built Around You', where customers are at the centre of everything we do.
"We continue to prudently manage our credit and liquidity risks and remain steadfast in navigating the ongoing business disruptions to ensure banking and financing requirements of individuals and businesses are met," he said in a separate statement.
Fuda added that amid the challenging operating environment, HLB disciplined in its investments and expenditures which allow the bank to invest in growth opportunities that will deliver sustainable outcomes to its stakeholders.
He also noted that in line with its carbon neutral ambition, the bank would continuously integrate robust environmental, social and governance practices internally within its own business operations and engage proactively with all our external stakeholders.
