Hong Leong Bank profits dip 0.6% to $154.75m in Q1

Net interest income declined 5.7%.

Hong Leong Bank opened the year on shaky financial footing after earnings dipped 0.6% YoY and 1.3% QoQ to $154.75m (RM639.5m) in Q1FY19, according to UOB Kay Hian.

Also read: Hong Leong Bank unveils AI-powered chatbot

Net interest income fell 5.7% on the back of a compression in net interest margin (NIMs) which declined by a further 5 basis points QoQ and a fee income contraction of 1.7%.

“Revenue was flattish qoq but declined 1.5% yoy in 1QFY19. As such, the group was not able to generate a positive operating JAW resulting in 120bp qoq and 160bp yoy deterioration in cost to income ratio to 44.6% in 1QFY19,” analyst Keith Wee Teck Keong said in a report.

Loan growth of 4% in Q1 also remained below industry average with working capital loans and automobile loans booking flattish performances and non-residential property loans contracting 1.2%.

However, the bank’s gross impaired loan (GIL) ratio improved from 0.87% in Q4 to 0.80% in Q1FY19.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit