KUALA LUMPUR: Hong Leong Bank Bhd posted higher earnings of nearly RM520mil in the third quarter ended March 31, 2015 underpinned by healthy growth in net interest income, improved asset quality and strong profit contribution from associates.
The bank said on Tuesday the earnings were higher by 3.8% from the RM500mil a year ago. Its revenue rose 4.2% to RM988.11mil from RM948.26mil. Earnings per share were 29.39 sen compared with 28.40 sen.
For the nine months, its earnings increased by 3.4% to RM1.618bil from RM1.564bil in the previous corresponding period.
In the nine-month period, Hong Leong Bank said net interest income grew 4.1% on-year to RM2.387bil, largely supported by loans growth and expansion in securities portfolio.
The net interest margin for 9MFY15 were within its expectation at 2.02%, despite increased competition for both loans and deposits.
However, its revenue slipped to RM3.026bil from RM3.032bil. This was due to a 41.6% on-year growth in non-interest income for the current quarter underpinned by improved performance in treasury market activities.
“Operating expense for 9MFY15 inched up by 1.3% on-year to RM1.343bil, mainly attributed to branch expansion and new business initiatives. We continue to keep a close lid on our cost discipline, pursuing optimal operating efficiencies whilst investing for growth,” it said.
