Hong Leong Finance reports third quarter profit of $14.3 million

SINGAPORE - Hong Leong Finance posted a 28.1 per cent decline in net profit for the third quarter ended Sept 30 to $14.3 million, amid economic restructuring challenges and a slowing Singapore economy.

Net interest income and hiring charges rose 1.6 per cent to $37.6 million.

Annualised earnings per share was 12.93 cents in the third quarter, down from 18.02 cents in the same period a year earlier.

Net asset value per share stood at $3.69, down from $3.72 previously.

A 9.9 per cent increase in interest on loans to $50.3 million was offset by a 19 per cent drop in hiring charges to $8.73 million.

Higher operational costs took their toll as staff costs rose 4.8 per cent to $16 million, while other operating expenses jumped 11 per cent to $4.8 million due to increased business promotion expenses.

No interim dividend has been recommended for the third quarter. An interim dividend of four cents per share declared in the previous quarter was paid on Sept 15.