Hong leomg Financial Group owner of one of the top Malaysian banks by asset size, reported Wednesday net profit dipped 0.17% year-on-year to 386.19 million ringgit ($87.59 million) for the first quarter ended September.
The financial group controlled by tycoon Quek Leng Chan saw interest income slip 0.09% to 1.58 billion ringgit in the quarter from a year ago, it noted in a filing to Bursa Malaysia.
"It has been a good start to the new financial year despite the challenging economic environment," said Hong Leong Financial Group president and CEO Tan Kong Khoon in a statement. "Business growth remains intact and most importantly our core businesses continue to show strong credit and liquidity risk metrics which is important in these times."
Hong Leong Financial Group owns 64.4% of commercial bank Hong Leong Bank, 70% of insurer Hong Leong Assurance, and 81.3% of investment bank Hong Leong Capital.
Pre-tax profit for the commercial bank division grew 8% year-on-year to 674.6 million ringgit, thanks to higher net interest income and non-interest income. Its loan-to-deposit ratio is 81% as at end of September while its cost-to-income ratio is at 44.8% in the period from July to September.
Hong Leong Capital recorded a 42.6% year-on-year increase in pre-tax profit to 18.4 million ringgit in the corresponding period, due to higher contribution from its investment banking and stockbroking segments.
Hong Leong Assurance reported a 27.4% fall in its pre-tax profit to 53.6 million ringgit for the quarter ended September, partially due to higher operating expenses and a lower share of profit from an associated company. Earlier this month, the group stopped negotiations for the sale of its insurance arm as it could not reach an acceptable price.
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