KUALA LUMPUR (Aug 29): Hong Leong Financial Group Bhd (KL:HLFG), the financial services arm of tycoon Tan Sri Quek Leng Chan, said on Thursday its net profit rose 21% in the fourth quarter from a year earlier led by its banking unit.

Net profit for the three months ended June 30, 2024 (4QFY2024) was RM806.09 million, compared with RM663.91 million over the same period last year, HLFG said in an exchange filing. Net interest income rose 10% to RM1.01 billion, while non-interest income rose 33% to RM457.76 million.

“The group is well positioned to capture economic growth and deliver sustainable value creation as guided by our strategic priorities through enhancing our digital capabilities, expanding our suite of products and delivering customer-centric solutions,” said HLFG president Tan Kong Khoon.

The company has also declared a final dividend of 36 sen per share, lifting total dividends by five sen to 54 sen per share for FY2024.

HLFG derives most of its earnings from its listed commercial banking arm Hong Leong Bank Bhd (KL:HLBANK). The company also runs investment banking and asset management under Hong Leong Capital Bhd (KL:HLCAP) as well as insurance under unlisted HLA Holdings Sdn Bhd.

On Thursday, Hong Leong Bank reported a 20% year-on-year rise in net profit on higher operating income and provisions writeback. Net profit at Hong Leong Capital more than quadrupled thanks to a surge in income from stockbroking as well as a one-off surge in fees from private mandates.

At HLA Holdings, profit before tax rose nearly 5% to RM153.2 million from RM146.1 million in 2QFY2023 due to higher investment income and higher share of profit from associate company of RM1.7 million.

For FY2024, net profit at HLFG rose 11% year-on-year to RM3.20 billion from RM2.88 billion. Net interest income inched up 3.6% to RM3.92 billion while non-interest income was a tad higher at RM1.74 billion.

Return on equity was 11.2% while book value per share rose to RM26.53 from RM23.99 at the end of June 2023.