,Singapore

Hong Leong Finance net attributable profit up 22.4% to $44.7m

The company ranks 665th in the Top 1000 World Banks 2021.

Hong Leong Finance reported a 22.4% improvement in its net attributable profit for the first half of the year at $44.7m.

This was driven by a stepped-up effort in managing the cost of funds and lower loan loss allowances, it said in a bourse disclosure.

Its net interest income was up 8.6% to $89.2m following the calibration of funding strategies to pare down the deposit base and tighten funding costs.

Fee and commission income remained stable at $4.7m.

Total staff and operating costs increased by 15.1% to $43.5m for the first half due to the lower base last year, offset by budget relief measures by the Singapore government.

Net allowances for loans and other financial assets was a net write-back of $3.0m. Net loan assets totalled $10.6m as of end-June, 2.9% more than last year’s base of $10.95 as of end-December.

Deposits and balances of customers decreased by 3.3% to $10.83m.

“Whilst we are watchful of the uncertainties in the prevailing operating environment, our strong balance sheet and capital position will enable us to capitalise on opportunities arising from the improved economic condition. We will continue to drive more digital capabilities and build front-end solutions, enhance our products offering to support our customers’ needs and drive long-term sustainable value for our stakeholders,” the company said.

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