SINGAPORE (April 27): Hong Leong Finance saw 1Q earnings rise 13.2% to $16.5 million from a year ago partly due to a decline in staff costs and a reduction in other operating expenses.
For the three months ended March, income before operating expenses logged in at $39.9 million, up 0.4% from a year ago.
Total interest income/hiring charges decreased 11.5% to $72.1 million from a year ago but interest expense also registered a decrease of 18.4% to $35.8 million.
Accordingly, net interest income/hiring charges marginally decreased by 3.3% to $36.3 million from the previous corresponding quarter.
Fee and commission income increased by 63.6% to $3.7 million with higher fee income from both lending and non-lending products.
Staff costs decreased by 6.8% mainly due to $15.4 million lower provision for bonus and headcount.
A decrease of 14.0% to $4.7 million in other operating expenses was due mainly to decrease business promotion expenses.
Annualised earnings per share came to 14.83 cents, up from 13.11 cents a year ago.
Shares of Hong Leong Finance closed 1 cent higher at $2.76.
