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Happy National Day Singapore!
Hong Leong Finance H1 profit up 3.2%
The company' s rise in net profit to S$46.6 million was driven by higher net interest income and write-back of expected credit loss allowances.
HONG Leong Finance : S41 0% posted a 3.2 per cent rise in net profit to S$46.6 million for the first half ended Jun 30, 2023, driven by higher net interest income and write-back of expected credit loss allowances.
Earnings per share stood at 20.78 Singapore cents, compared with 20.14 cents the year before.
The board has declared an interim dividend of 3.5 Singapore cents per share, down from 3.75 cents a year ago, to be paid on Aug 31.
Net interest margin fell four basis points to 1.48 per cent, as the rise in funding costs outpaced the lift in asset yields amid the rise in interest rates. Still, improved interest yields drove net interest income to rise 5.2 per cent to S$101.5 million.
Fee and commission income fell 45.7 per cent to S$4.4 million. Hong Leong Finance blamed it on subdued lending activities for development and club loans in current financial markets.
Net allowances for loans and other financial assets was a net reversal of S$2.7 million, compared with a net allowance of S$1.8 million the year before. This included a reversal of S$2.1 million in allowances for non credit-impaired loans on revised risk parameters, and a reversal of S$600,000 in allowances for credit-impaired loans.
The non-performing loan ratio was stable at 1.6 per cent. Hong Leong Finance had net loan assets of S$11.7 billion as at Jun 30, largely unchanged from Dec 31, 2022 and 1.8 per cent up year on year.
Review of the performance of the Group
The Group reported a net attributable profit of $46.6 million for first half-year ended 30 June 2023, up
3.2% from the same period last year, mainly driven by higher net interest income and write-back of expected
credit loss allowances.
Net interest income rose 5.2% to $101.5 million on the back of improved interest yields. Net interest
margin was moderated by four basis points at 1.48% as the rise in funding cost outpaced the uplift in asset
yields year-on-year, amid the elevated interest rate environment.
Fee and commission income declined by 45.7% to $4.4 million for first half-year 2023 on subdued lending
activities for development and club loans in current financial markets.
Total operating expenses increased by 8.9% to $52.8 million for first half-year 2023 due to higher staff cost
on lower base in first half last year partially offset by lower operating expenses with tightened cost control.
Net allowances for loans and other financial assets for first half-year 2023 was a net reversal of $2.7 million
as compared to a net allowance of $1.8 million in the corresponding period. This included a reversal of
$2.1 million in allowances for non credit-impaired loans on revised risk parameters and a reversal of $0.6
million in allowances for credit-impaired loans. Asset quality remained resilient as the Group continued to
exercise prudence in its credit risk management and underwriting parameters with adequate loss
allowances to cover the loan portfolio. The non-performing loan ratio remained stable at 1.6%.
Net loan assets totalling $11,665 million as at 30 June 2023, up by 0.1% or $14 million over the previous
year?s base of $11,651 million as at 31 December 2022 and 1.8% or $210 million over corresponding
period as at 30 June 2022. The loan portfolio remained well-secured.
Deposits and balances of customers increased to $12,164 million as at 30 June 2023, representing an
increase of 1.1% or $134 million over the previous year?s base of $12,030 million as at 31 December
2022 and 3.5% or $416 million over corresponding period as at 30 June 2022. Cash and cash equivalents
including statutory deposit with the Monetary Authority of Singapore (?MAS?) together with Singapore
Government debt securities, MAS Bills and MAS FRN held as liquid assets amounted to $2,779 million as
at 30 June 2023 (31 December 2022: $2,549 million). The Group maintained liquidity buffer above
regulatory Minimum Liquid Asset (?MLA?) and stayed well-positioned to withstand the market uncertainties.
Group shareholders? funds as at 30 June 2023 totalled $2,029 million (31 December 2022: $2,041
million) with net asset value at $4.52 per share (31 December 2022: $4.55 per share). The Group?s
Capital Adequacy Ratio stood at 16.6% as at 30 June 2023, well above regulatory requirement and
remained strong to support lending activities.
There has been no forecast or prospect statement previously disclosed to shareholders in respect of the
period under review.
Dividends
The directors are pleased to declare an interim dividend of 3.5 cents per share (tax exempt one-tier) (2022:
3.75 cents per share, tax exempt one tier) in respect of the financial year 2023. The interim dividend will
be paid on 31 August 2023.
The Group reported a net attributable profit of $46.6 million for first half-year ended 30 June 2023, up
3.2% from the same period last year, mainly driven by higher net interest income and write-back of expected
credit loss allowances.
Net interest income rose 5.2% to $101.5 million on the back of improved interest yields. Net interest
margin was moderated by four basis points at 1.48% as the rise in funding cost outpaced the uplift in asset
yields year-on-year, amid the elevated interest rate environment.
Fee and commission income declined by 45.7% to $4.4 million for first half-year 2023 on subdued lending
activities for development and club loans in current financial markets.
Total operating expenses increased by 8.9% to $52.8 million for first half-year 2023 due to higher staff cost
on lower base in first half last year partially offset by lower operating expenses with tightened cost control.
Net allowances for loans and other financial assets for first half-year 2023 was a net reversal of $2.7 million
as compared to a net allowance of $1.8 million in the corresponding period. This included a reversal of
$2.1 million in allowances for non credit-impaired loans on revised risk parameters and a reversal of $0.6
million in allowances for credit-impaired loans. Asset quality remained resilient as the Group continued to
exercise prudence in its credit risk management and underwriting parameters with adequate loss
allowances to cover the loan portfolio. The non-performing loan ratio remained stable at 1.6%.
Net loan assets totalling $11,665 million as at 30 June 2023, up by 0.1% or $14 million over the previous
year?s base of $11,651 million as at 31 December 2022 and 1.8% or $210 million over corresponding
period as at 30 June 2022. The loan portfolio remained well-secured.
Deposits and balances of customers increased to $12,164 million as at 30 June 2023, representing an
increase of 1.1% or $134 million over the previous year?s base of $12,030 million as at 31 December
2022 and 3.5% or $416 million over corresponding period as at 30 June 2022. Cash and cash equivalents
including statutory deposit with the Monetary Authority of Singapore (?MAS?) together with Singapore
Government debt securities, MAS Bills and MAS FRN held as liquid assets amounted to $2,779 million as
at 30 June 2023 (31 December 2022: $2,549 million). The Group maintained liquidity buffer above
regulatory Minimum Liquid Asset (?MLA?) and stayed well-positioned to withstand the market uncertainties.
Group shareholders? funds as at 30 June 2023 totalled $2,029 million (31 December 2022: $2,041
million) with net asset value at $4.52 per share (31 December 2022: $4.55 per share). The Group?s
Capital Adequacy Ratio stood at 16.6% as at 30 June 2023, well above regulatory requirement and
remained strong to support lending activities.
There has been no forecast or prospect statement previously disclosed to shareholders in respect of the
period under review.
Dividends
The directors are pleased to declare an interim dividend of 3.5 cents per share (tax exempt one-tier) (2022:
3.75 cents per share, tax exempt one tier) in respect of the financial year 2023. The interim dividend will
be paid on 31 August 2023.
Ok after listening to PM Lee press conference, confidence is back.
investshare ( Date: 17-Jul-2023 15:30) Posted:
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Oh I am worry now ..
Singapore being investigated has to LOA, Malaysia being charged is DPM.
Which country has better future?
Buy HLF!
Which country has better future?
Buy HLF!
What about Hong Leong?
Ridout case show Singapore system is intact, more good years, buy HLF!
Nothing against other candidates, but Tharman is in totally different league, I would vote Tharman.
sengkang ( Date: 14-Jun-2023 21:49) Posted:
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Tharman confirmed Prez? Election date still long way to go.
Where is your info source?
Where is your info source?
investshare ( Date: 14-Jun-2023 20:17) Posted:
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With Tharman as Preseident, Singapore will be safe for another 6 years. Good for HLF!
Reminder
investshare ( Date: 08-Jan-2019 07:25) Posted:
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what happen ? Why the up ?
As competition intensifies, Hong Leong Finance should consider a sale
https://www.businesstimes.com.sg/opinion-features/columns/competition-intensifies-hong-leong-finance-should-consider-sale
Agm on 27 April. Let hope they will throw a stunner for privatisation of this stock. Might as well delist. No point list here.
Yes just like Singapore , slow and steady
robinvanjo ( Date: 28-Feb-2023 15:03) Posted:
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but very slowly moving ah
investshare ( Date: 27-Feb-2023 15:24) Posted:
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Remember this ..
investshare ( Date: 05-Jan-2019 16:47) Posted:
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2.5 liao
SDEXXXXD ( Date: 25-Feb-2023 12:29) Posted:
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Next week share price chiong up haha
john_ric ( Date: 25-Feb-2023 11:36) Posted:
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