KUALA LUMPUR (Sept 1): Hong Leong Bank Bhd's (HLB) share price rose more than 4% in Bursa Malaysia morning trade today on bargain hunting after the group proposed last Friday a final dividend of 20 sen per share for the financial year ended June 30, 2020 (FY20).

Meanwhile, a separate announcement by HLB last Friday that the Employees Provident Fund (EPF) had acquired more shares in the group could have also led to better sentiment on HLB shares today.

At 10.47am, HLB's share price was 60 sen or 4.29% higher at RM14.60, becoming Bursa's second-largest gainer.

At RM14.60, HLB had a market value of RM31.68 billion.

The stock has been trading between RM14.20 and RM14.66 so far today.

Last Friday, HLB said in a Bursa filing that the dividend is subject to shareholders' approval in the group's forthcoming annual general meeting (AGM).

It was reported that HLB recorded a net profit drop to RM569.42 million for the fourth quarter ended June 30, 2020 (4QFY20), from RM636.45 million a year earlier, while revenue grew to RM1.2 billion from RM1.17 billion.

For the full FY20, it was reported that its net profit fell to RM2.49 billion, from RM2.66 billion a year earlier, although revenue grew to RM4.78 billion from RM4.73 billion.

In a separate filing, HLB said the EPF acquired last Tuesday 411,300 shares in HLB.

After the acquisition, the EPF's stake in HLB rose to 11.74%, comprising 244.98 milllion shares, according to the bank.

Analysts said today HLB's FY20 net profit was within and in line with expectations.

MIDF Amanah Investment Bank Bhd analyst Imran Yassin Md Yusof wrote in a note that the net profit was within MIDF's and consensus expectations at 96.5% and 98.9% of full-year estimates respectively.

RHB Investment Bank Bhd analysts Fiona Leong and Liew Wai Hoong wrote in another note that HLB's FY20 net profit was in line with RHB's estimate, but only 92% of the consensus full-year forecast.