Hong Leong Finance net profit up 89% in Q2

Fee and commission income rose 30.8 per cent to S$4 million from both lending and non-lending products.
Fee and commission income rose 30.8 per cent to S$4 million from both lending and non-lending products. PHOTO: HONG LEONG FINANCE

SINGAPORE - Finance firm Hong Leong Finance has posted a net profit of S$20.9 million in the second quarter, up 89.1 per cent from the same period a year ago.

Net interest income and hiring charges in the three months to June 30 was S$42.6 million, an increase of 25.3 per cent.

A combination of lower deposits base and applicable interest rates resulted in interest expense falling 30.2 per cent from a year earlier to S$31 million in the second quarter, which made up for the 6.1 per cent drop in total interest income and hiring charges to S$73.7 million.

Fee and commission income rose 30.8 per cent to S$4 million from both lending and non-lending products. Staff costs dropped by 6.4 per cent to S$14.8 million owing to lower provision for bonus.

Earnings per share was 18.78 Singapore cents, up from 9.95 Singapore cents in the second quarter last year.

An interim dividend of four cents per share will be paid on Sept 12. This is higher than the three cents in interim dividend paid last year.