KUALA LUMPUR (Nov 25): Hong Leong Financial Group Bhd reported a 9% drop in first quarter net profit from a year earlier, mainly on lower insurance income.
In a statement to Bursa Malaysia today, Hong Leong Financial said net profit fell to RM392.16 million in the first quarter ended September 30, 2014 (1QFY14), from RM430.19 million.
Revenue was lower at RM1.08 billion, versus RM1.17 billion.
"The overall decrease was mainly due to lower contribution from insurance division," Hong Leong Financial said.
Group revenue and profit fell, despite higher net interest and net Islamic banking income.
Hong Leong Financial's income statement showed net interest income rose to RM685.3 million, from RM607.22 million. Net Islamic banking income was higher at RM110.05 million, compared to RM108.35 million.
Non-interest income — which included insurance earnings — fell to RM288.17 million, from RM457.26 million.
Despite lower 1QFY14 profit and revenue, Hong Leong Financial declared an interim single-tier dividend of 13 sen a share for the quarter.
The stock will trade ex-dividend on Dec 8 this year.
In a separate statement, Hong Leong Bank Bhd reported that 1QFY14 net profit rose 0.6% to RM547.57 million, from RM544.49 million a year earlier. Revenue was higher at RM1.03 billion, versus RM1.01 billion.
Hong Leong Financial owns a 64.37% stake in Hong Leong Bank.
At 12.30pm, Hong Leong Financial rose six sen or 0.3% to settle at RM18.40, for a market capitalisation of RM19.37 billion.
Hong Leong Bank climbed 16 sen or 1.1% to RM14.48, for market value of RM26.05 billion.