Yahoo Finance Hong Leong Finance maintains 1HFY2022 earnings at $45.1 million
Hong Leong Finance plans to keep its interim dividend at 3.75 cents
Hong Leong Finance has reported earnings of $45.1 million for 1HFY2022 ended June, up 1% y-o-y. Revenue in the same period was nearly $127 million, up 3.1% y-o-y. It is keeping interim dividend payout at 3.75 cents per share.
While the finance company was able to generate higher operating profit 11% higher than 1HFY2021, it had to set aside higher expected loan loss allowances as well.
For the 1HFY2022 period, Hong Leong Finance lifted its net interest margin by 10 basis points to 1.52%.
Net allowances for loans and other financial assets for 1HFY2022 was $1.8 million, no thanks to higher allowances for non credit-impaired loans as compared to corresponding period which included a reversal of $2.7 million in allowances for non credit-impaired loans on revised risk parameters.
Its non-performing loan ratio declined to 0.8% with proactive management of its loan portfolio.
As at June 30, its net loan assets was $11.46 billion, up 7.1% y-o-y.
“The group’s balance sheet remained robust with strong liquidity and capital to support lending activities and well positioned to ride through current market uncertainties,” says Hong Leong Finance.
The company sees the rest of 2022 and beyond a period of “heightened uncertainties”.
“We expect the higher interest rate to provide a boost to our assets yields while remain cautious in the management of elevated market funding cost,” the company adds.
Hong Leong Finance shares closed on Aug 4 at $2.48, up 0.1%.
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