KUALA LUMPUR: Hong Leong Bank Bhd's posted a 9.9 per cent jump in net profit for the financial year ended June 30, 2024 (FY24) to RM4.2 billion on financing growth and better asset quality.
The growth was driven by higher loan/financing growth, improved asset quality metrics and healthy contributions from its associates.
Its non-interest income was healthy at RM1.1 billion while the net interest income grew 2.6 per cent to RM4.7 billion.
Current accounts and saving accounts (Casa) grew strongly by 10 per cent to RM71.6 billion, which translated into an improved Casa ratio of 32.5 per cent driven by their community deposit acquisition initiatives and innovative cash management solutions.
The bank's gross loans and financing portfolio in FY24 grew 7.3 per cent to RM194.9 billion, contributed by expansion in mortgage, auto loans, small and medium enterprise (SME) and commercial banking segments, as well as key overseas markets.
Asset quality position remained healthy with Gross Impaired Loans (GIL) ratio improving to 0.53 per cent from 0.57 per cent in the previous quarter and Loan Impairment Coverage (LIC") ratio at 155.0 per cent as at 30 June 2024.
Net profit jumped 20 per cent to RM1 billion in the fourth quarter of financial year 2024 (4QFY24) from RM864.7 million a year ago.
The bank's revenue grew 13.31 per cent to RM1.48 billion compared to RM1.3 billion previously.
The bank declared a final dividend of 43 sen per share was also declared for the current quarter payable on a date to be determined later.
In a statement, Hong Leong said the net interest income rose 10.7 per cent to RM1.2 billion, led by expansion in loans/financing and effective funding cost management.
Correspondingly, net interest margin (NIM) has recorded consecutive fifth quarter of improvement to 1.89 per cent.
Meanwhile, the non-interest income expanded strongly by 26.5 per cent to RM271 million, on the back of higher fee income from wealth management and credit card related fees, coupled with gains in foreign exchange.