SINGAPORE (Nov 10): Hong Leong Finance reported a 84.2% rise in 3Q earnings to $23.6 million from $12.8 million a year ago.
Total interest income/hiring charges for 3Q increased by 3.6% to $77.1 million due to higher loan yield partially offset by a lower average loan base.
Interest expense for the quarter registered a decrease of $12.7 million to $29.7 million mainly due to a lower average loan base.
Accordingly, net interest income/hiring charges for the quarter increased 48.0% to $47.4 million.
The group recorded profit from operations before allowances/provision of $31.3 million for the quarter, an increase of 111.7% from $14.7 million from a year ago, due mainly to decreases in interest expense.
Group profit before tax for the quarter were arrived at after topping up provision amounting to $2.8 million and $2.5 million respectively.
In its outlook, Hong Leong Finance says although there are signs that 2017 may be the best year for global growth since the 2008 financial crisis, there are a number of threats on the horizon that could derail the world’s economic recovery.
In light of these uncertainties, the group will continue with its risk and customer focused strategies. It will also continue to explore opportunities with fintechs.
Shares in Hong Leong Finance closed 2 cents higher at $2.72.
