Hong Leong Q2 profit down 13% at $66mln

Lender is upbeat Malaysia's economic recovery in second half of 2010 would provide it growth opportunities.

Hong Leong Bank recorded lower earnings of RM224.75 million ($65.9 million) for its second quarter ended Dec 31, 2009, down 12.6% from RM257.43 million ($75.49 million) a year ago, weighed down by lower net interest income, lower non-interest income and higher other operating expenses.

It said that pre-tax profit fell 14.4% to RM291.28 million ($85.46 million) from RM340.09 million ($152.41 million). Revenue was RM519.40 million ($165.55 million) compared with RM564.21 million ($165.55 million).

"The decrease [in pre-tax profit] was due to lower net interest income by RM17.2 million ($5.04 million), lower non-interest income by RM37.2 million ($10.92 million) and higher other operating expenses by RM21.2 million ($6.22 million).

"This is however mitigated by a higher share of profit from Bank of Chengdu by RM8.3 million ($2.44 million), higher net income from the Islamic banking business by RM9.6 million ($2.82 million) and an impairment writeback of RM6.1 million ($1.79 million)," it said.

Hong Leong Bank said it continues to be cautiously optimistic about the economic outlook for the rest of the year.

View the full story in the Edge.