Hong Leong Bank Bhd continued to register growth with pre-tax profit up at RM317.4 million for the first-quarter of the financial year ending June 30, 2011 from RM288.8 million chalked up in same quarter in 2010.

Revenue rose to RM539.8 million from RM511.7 million previously.
It has been a satisfactory start to FY11 and the operating results are robust. We are optimistic of the growth momentum and will continue to forge ahead with our strategies, Group Managing Director and Chief Executive Officer Yvonne Chia said in a statement today.

The bank's gross loans grew 4.2 per cent this quarter against June 2010 while working capital loans increased 3.3 per cent this quarter when compared with June 2010, she added.

Our loans-to-deposit ratio of 57 per cent means we have a very strong capacity to continue funding our loans growth, she added.
Deposits grew one per cent this quarter against June 2010 or 11 per cent, year-on-year, further strengthening its competitive ability to assert liquidity franchise.

Overall, we are more upbeat with the market outlook compared with a year ago. But, the effects from the global quantitative easing efforts will have some impact on a trading economy like ours.

On the domestic front, there are opportunities to revitalise private investments as the main catalyst for growth under the Economic Transformation Programme, she added.

In a separate statement, Hong Leong Islamic Bank said its underlying business operations remained strong, recording a 16 per cent increase in revenue.

The bank earned a net profit of RM22 million for the first-quarter ended Sept 30, 2010 compared with RM29 million registered in the previous corresponding period.

However, net profits were slightly lower, during the quarter, due to transfer of revenue to the reserve account.
The transfer was part of the bank's initiative to build a sustainable reserve account balance to support future growth of deposits.

Its total assets improved 11 per cent to RM11 billion with net financing and advances growing 4 per cent to RM4.3 billion. -- Bernama