KUALA LUMPUR: Hong Leong Financial Group Bhd (HLFG) reported yesterday a 4.45% rise in its second-quarter net profit to RM502.96 million from RM481.55 million a year earlier on higher contributions from its operating divisions, which include businesses in the retail banking, insurance and stockbroking segments.

HLFG undertakes its retail banking operations via its 61.82%-owned subsidiary Hong Leong Bank Bhd while HLFG’s insurance business is placed under HLA Holdings Sdn Bhd. HLFG’s 81.33%-owned subsidiary Hong Leong Capital Bhd runs the group’s asset management, investment banking and stockbroking businesses. In a statement to Bursa Malaysia yesterday, HLFG said its group revenue rose to RM1.36 billion for the second quarter ended Dec 31, 2019 (2QFY20) from RM1.25 billion for the previous year.

“The increase was mainly due to higher contributions from all the operating divisions. Barring unforeseen circumstances, the group is expected to maintain its performance in line with market conditions for the current financial year,” HLFG said.

For the first half of FY20, HLFG said its cumulative group net profit climbed to RM993.16 million from RM987.24 million a year earlier while revenue was higher at RM2.69 billion versus RM2.63 billion. For 2QFY20, HLFG said Hong Leong Bank recorded a profit before tax of RM857 million compared with RM823.2 million for the previous corresponding quarter.

“HLA Holdings Group recorded a profit before tax of RM64.7 million for the current quarter ended Dec 31, 2019 as compared to RM58.7 million for the previous corresponding quarter, an increase of RM6 million or 10.2%.

“Hong Leong Capital Group recorded a profit before tax of RM23 million for the current quarter ended Dec 31, 2019 as compared with RM14.8 million for the previous corresponding quarter, an increase of RM8.2 million or 55.4%” HLFG said.

Hong Leong Bank and Hong Leong Capital also reported their financial results in separate statements to Bursa Malaysia.

Hong Leong Bank said its 2QFY20 net profit rose to RM701.81 million from RM687.25 million a year earlier while revenue was higher at RM1.24 billion versus RM1.14 billion.

Hong Leong Capital said its 2QFY20 net profit rose to RM23.1 million from RM18.02 million a year earlier while revenue climbed to RM81.52 million from RM76.85 million.