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Tuesday, 30 Aug 2022 2:22 PM MYT

KUALA LUMPUR, Aug 30 — Hong Leong Bank Bhd’s net profit for the financial year ended June 30, 2022 (FY2022) surged 15 per cent to RM3.29 billion from RM2.86 billion a year ago.

Revenue jumped to RM5.60 billion from RM5.47 billion previously, underpinned by higher net interest income, the bank said in a filing with Bursa Malaysia today.

Its gross loans and financing maintained strong growth trajectory, expanding by eight per cent year-on-year (y-o-y) to RM168.2 billion, with asset quality remaining solid, reflected by a gross impaired loan ratio of 0.49 per cent and strong loan impairment coverage of 211.8 per cent.

On regional contribution, international operations accounted for 26.1 per cent of the bank’s pre-tax profit in FY2022, primarily driven by the robust contribution from Bank of Chengdu in China.

Group managing director and chief executive officer Domenic Fuda said that despite the ongoing macroeconomic headwinds from geopolitical tensions, globally elevated inflation and resurgence of Covid-19 cases, Malaysia is well positioned for continued recovery of economic activities underpinned by consumption spending and recovery in business investment.

“Alongside the strong external demand and reopening of international borders, we have seen a much stronger demand for loan/financing from our clients.

“We have achieved a commendable set of results in FY2022, led by our solid loan/financing growth, tight cost controls, lower loan impairment allowances and robust contributions from our associates. Consequently, return on equity has improved to 10.9 per cent for the financial year,” added Fuda.

HLB’s board has declared a final dividend of 37.0 sen per share, bringing the total dividend to 55.0 sen per share for FY2022, with a dividend payout ratio of 35 per cent.

On prospects, Fuda said despite increasing concerns over a slowdown in the world economy, Malaysia is on track to achieve the upper end of its 5.3 per cent to 6.3 per cent growth projection this year, underpinned by continuous improvement in domestic demand, amid an improving labour market, targeted policy support and borders reopening.

“The dynamic business environment will no doubt provide us with new growth opportunities, which we will strive to capture by being adaptive and responding swiftly to the changing landscape,” added Fuda. — Bernama