HLB posts 12.5% increase in fiscal year net profits

Hong Leong Bank Bhd overcame a slashed fourth quarter profit to end the financial year with an increased net profit.

The banking group's net profit for the fourth quarter ended June fell to RM297 million from the RM303 million in the same period last year, on higher operating expenses and higher allowance for impaired loans. Its recent merger with the EON Bank Group had also incurred expenses totalling RM111mil, which it had to bear during the quarter in review. The merger-related expenses, HLB said, had more than offset the profit contribution of RM72mil from EBG.

HLB's consolidated net profit for FY11 showed a growth of 12.5% year-on-year to RM1.14 billion, compared with RM1.01 billion in fiscal year 2010.

“In this last quarter of the financial year, the results consolidated the performance of the former EBG from May 6,” explained HLB group managing director/chief executive Yvonne Chia.

HLB's revenue for 4Q11 grew to RM820.79mil from RM520.25mil in 4Q10. Revenue for FY11 stood at RM2.54bil, representing a growth of 21.9% from RM2.09bil in FY10.

The gross loans book of the merged group ended at over RM84bil, 2.2 times larger than a year ago. “Stand-alone loans growth at HLB itself or the 12-month period was 16.5%, against industry's 13.5%,” Chia said.

HLB continued to see growth in its overseas branches and subsidiary that contributed 2.5% to the group's pre-tax profit. Its Vietnam subsidiary had also made its maiden profit this ye