Hong Leong Bank's net profit down 4% to RM497.83m

Blame it on higher impairment losses.

Malaysia's Hong Leong bank reported a net profit of RM497.83 million in the third quarter, compared with RM519.16 million in the same period last year.

The 4% decline in profit was mainly on back of higher charges for impairment losses, steeper operating expenses and lower write-backs.

The group suffered higher charge on allowance for impairment losses on loans, advances and financing of RM26.6 million, higher operating expenses of RM21.7 million, lower write back of impairment losses from securities of RM4.8 million coupled with lower share of profit from associated company and joint venture of RM17.1 million.

This is however mitigated by higher net income of RM14.1 million.

"The operating environment remains challenging as uncertainties in global economies, market volatilities and lingering weakness in oil prices weighed on consumer sentiment and business activity whilst competition and margin compression continue to impact the profitability of the banking sector," said Domenic Fuda, group managing director and CEO.