Hong Leong ups net income by 3.5%

The quarter ending in March 2010 shows an uptake in loan growth momentum for Hong Leong Bank. Loans growth rebounded to 8 percent year-on-year in March 2010, against 2.2 percent for the first six months ended December 2009.

"Lending to the corporate and commercial segment expanded 21 percent year-on-year, or 11 percent against the December 2009 quarter. This has been driven by an expansion in trade finance with recoveries in export. Working capital loans saw a 12 percent rise for the nine months to March 2010. Mortgages grew 6 percent year-on-year while unsecured lending including credit cards saw a 10 percent rise in receivables," Ms Yvonne Chia, Group Managing Director / Chief Executive said, adding that growth was broad-based.

Ms. Chia went on to report that core deposits consisting of fixed deposits, current account and savings account deposits, as well as foreign currency deposit accounts expanded 6 percent overall. Growth in deposits continued to perform well, with current account deposits growing 23 percent while savings account deposits rose 9 percent.
Overall, net profit for the quarter improved by 10.3 percent compared to figures recorded for the quarter ending March 2009. The asset base expanded 3.8 percent year-on-year.

Total net income for the quarter ended March 2010 increased by 3.5 percent to US$ 151 million when compared to the March 2009 quarter.

Net interest income for the quarter ended March 2010 increased by 3 percent to US$ 100.2 million when compared to the March 2009 quarter.

Overall, Ms. Chia is optimistic about the future and progress of the Group. "Domestic sentiments continue to improve and the underlying fundamentals provide good headroom support as we transition into a higher income economy. The economic environment remains conducive to growth, and we fully expect Hong Leong Bank's growth momentum to continue as we forge both organic and inorganic growth opportunities."