SINGAPORE (Apr 26): Hong Leong Finance reported a 57% increase in 1Q18 earnings to $25.9 million from a year ago.
For the three months to March, total interest income and hiring charges increased by 11.5% due to an increase in average loan base and a higher loan yield.
Interest expense for the quarter fell 14.3% to $30.7 million. This was due to lower interest payable on deposits resulting from lower applicable interest rates offset by a larger deposits base.
Accordingly, net interest income and hiring charges for 1Q18 increased by 37% to $49.87 million.
Fees and commission income increased by 10.2% to $4 million with higher fee from some lending products partially offset by a decrease in non-lending fee income.
Net loan assets including hire purchase receivables net of allowances stood at $10.4 billion at the end of March. This was an increase of 5.6% or $555 million over the previous year’s base of $9.9 billion as at Dec 31 2017.
In line with higher funding requirements, deposits and balances of customers amounted to $11.2 billion as at March 31. This was an increase of 5% or $538 million over the previous base.
Cash and cash equivalents -- including balances with the Monetary Authority of Singapore -- together with Singapore Government securities held as liquid assets amounted to $2.7 billion as at end March.
Barring a setback in global trade, Hong Leong Finance expects Singapore’s economy to continue to grow at a steady pace in the quarters ahead. In particular, the construction and domestic-oriented services are expected to show improvement, with the latter supported by an upturn in private consumption.
To support SMEs to upgrade themselves in the Smart Nation Master Plan, Hong Leong Finance has partnered Infocomm Media Development Authority in the SMEs Go Digital programme.
The group will also continue to partner Enterprise Singapore to promote Government-assisted SME loans and capability development grants programme.
It has also launched an SME Appreciation Loans programme to assist them in their cashflow needs and operations.
Shares in Hong Leong Finance closed 2 cents lower at $2.74 on Thursday.
