Photo by Patrick Goh/The Edge

KUALA LUMPUR (Nov 28): Hong Leong Bank Bhd’s (KL:HLBANK) first-quarter net profit grew 5.8% year-on-year (y-o-y), boosted by strong growth in both net interest income (NII) and non-interest income (NOII).

Net profit for the three months ended Sept 30, 2024 (1QFY2025) was RM1.09 billion, compared with RM1.03 billion a year earlier.

The healthy growth in quarterly net profit was supported by a 15% jump in net income to RM1.6 billion, from RM1.39 billion a year ago, as loans, financing portfolio and NOII contributions maintained their upward growth trajectory.

The bank, however, did not declare a dividend for the financial quarter under review.

Its NII jumped 10.5% y-o-y to RM1.24 billion for 1QFY2025, as a result of solid loan/financing growth and effective asset/liability management, according to HLB.

Correspondingly, the net interest margin increased by eight basis points to 1.92%, said the bank.

Meanwhile, its NOII surged 32% during the quarter to RM354 million, with a non-interest income ratio of 22.1%, complemented by healthy fee income, higher realised investment income, and improved foreign exchange gains.

During the quarter, the bank's gross loan and financing portfolio grew 6.9% to RM194.2 billion, contributed by an expansion in the mortgage, auto loan, small and medium enterprise (SME) and commercial banking segments.

“We continue to monitor our asset quality, in line with our prudent risk management culture and tight credit underwriting process, ending the first quarter with a solid GIL (gross impaired loan) ratio of 0.54%, and a loan impairment coverage ratio of 145.5%,” the bank said.

At Thursday's market close, HLB shares were down 24 sen or 1.15% at RM20.56, valuing the company at RM44.56 billion. Year to date, the stock has gained 8.78%.