Hong Leong Finance Shas recorded earnings of $93.4 million for the FY2023 ended Dec 31, 2023, 28.7% lower compared to its earnings of $130.9 million in FY2022.
Net interest income for FY2023 decreased 16.5% y-o-y to $202.2 million on an overall lower net interest margin of 1.5% for the full-year period.
Fee and commission income decreased 39.2% y-o-y to $10.0 million for FY2023 from lending business due to subdued property financing activities in the financial market.
For the full-year period, staff costs rose 9.6% y-o-y to $80.5 million mainly on annual increments as well as investments in resources to accelerate key digital transformation initiatives and strengthen the company’s compliance and risk management.
Meanwhile, other operating expenses reduced by 3.8% y-o-y to $16.9 million in FY2023 respectively, attributed to well-controlled business transaction and marketing expenses.
For FY2023, net reversal for loans and other financial assets was $4.6 million due to a lower allowance for non credit-impaired loans on updated risk parameters.
See also: Trump wins Republican nomination, setting up rematch with Biden
Looking ahead, the company says it is cautiously optimistic about Singapore’s economic landscape. “We remain resolute in seizing strategic opportunities and exercising financial prudence, while supported by strong governance practices. We understand that navigating the financial landscape requires a delicate balance between business performance and sustainable value creation,” says chairman Kwek Leng Beng.
“Leveraging digitalisation for enhanced customer experience, we will increase our efforts to expand into digital and online services to serve our customers. Through this integrated omnichannel approach, our customers can enjoy round-the-clock convenience for financial transactions alongside our existing face-to-face branch and relationship manager services,” he adds.
Shares in Hong Leong Finance S41 closed unchanged at $2.56 on Feb 23.
