KUALA LUMPUR (Nov 28): Hong Leong Financial Group Bhd (KL:HLFG), the financial services flagship of tycoon Tan Sri Quek Leng Chan, said on Thursday its net profit rose 14% in the first financial quarter from a year earlier, driven by the banking and insurance businesses.
Net profit for the three months ended Sept 30, 2024 (1QFY2025) was RM847.67 million, the group said in an exchange filing on Thursday. Year-on-year (y-o-y), net profit of Hong Leong Bank Bhd (KL:HLBANK) rose 5.8% to RM1.09 billion, thanks to a rise in both net interest income and non-interest income.
The unlisted insurance arm, HLA Holdings Sdn Bhd, meanwhile reported higher investment income and underwriting revenue.
The group did not declare any dividends for the latest quarter.
Quarterly revenue rose to RM1.89 billion, from RM1.58 billion a year ago.
In a separate statement, HLFG president and chief executive officer Tan Kong Khoon said, “The group is encouraged by our strong 1QFY2025 financial performance led by our focused execution of strategic priorities in growing our top line, which increased by 20.0% y-o-y."
He noted that the group’s non-interest income growth of 46.7% y-o-y was a result of fee-income expansion initiatives and investment gains, especially in the insurance segment.
"We also saw positive results from net interest margin recovery efforts and continued above-industry loan growth, resulting in sustained net interest income growth of 10.2% y-o-y," he said.
Notably, HLA’s pre-tax profit grew by 142.3% y-o-y, thanks to stronger investment income and higher net insurance service results.
As for Hong Leong Capital Bhd (KL:HLCAP), the investment banking and asset management division, pre-tax profit was lower by 20.5% y-o-y, due to delays in the completion of mandated deals, a mark-to-market decline in valuation of hedging instruments, and lower equity investment returns.
At the close on Thursday, HLFG shares were down 16 sen or 0.86% at RM18.40, valuing the group at RM20.99 billion. Year to date, the counter has risen 11.92%.