Hong Leong Finance posts 17% jump in Q3 net profit to $19.9 million

Hong Leong Finance has posted a 17.4 per cent jump in third quarter net profit to $19.9 million.

Income before operating expenses for the three months to Sept 30 was relatively flat at $42.8 million compared to $42.6 million previously.

Fee and commission income increased by 44.1 per cent, mainly due to higher fee income from some lending products and corporate advisory services.

Earnings per share climbed to 18.02 cents from 15.4 cents previously while net asset value per share was unchanged at $3.68.

Hong Leong Finance noted that the slew of cooling measures and loan curbs have slowed down new business in both motor vehicle loans as well as most private property lending.

It has been very selective in issuing housing loans for some time due to intense competitions and very low yields.

"When new car loans started to slow down, we have also shifted our focus to other better yielding loans and concentrated on assisting the small and medium enterprises to tide themselves over what is proving to be an extended period of difficulty," it said.