Kuala Lumpur, 16 May 2012: Hong Leong Islamic Bank, (BM: HLISBANK) today announced its results for the third quarter ended 31 March 2012.
Highlights for 3rd Quarter FY2012
Summary of Financial Performance
A summary of the financial performance headlines is outlined in the table below.
The Bank recorded a Profit After Tax of RM 103.3 million as at 31 March 2012, higher than the corresponding period last year of RM 50.0 million as a standalone bank - a reflection of the incremental income contribution from former EONCAP Islamic Bank, which was consolidated with HLISB effective 1 November 2011.
Return on Shareholders' Funds reached 15.3% for the first nine months of FY2012 compared to 8.0% for the corresponding period of FY2011.
The Bank recorded Total Distributable Incomes in 3Q2012 of RM 240.2 million or 147.9% growth over 3Q2011 and YTD2012 of RM 543.8 million, or 88.5% increase over the corresponding period in the previous financial year.
The growth reflects the improve scale of the merged banks, as well as enlarged customer base and delivery channels.
Income before Operating Expenses reached RM 120.7 million in 3Q2012, an increase of 184.4% over 3Q2011 driven by financing and treasury activities as well as better management of liquidity franchise. Net Profit Margins recorded an improvement of 2.07% in 3Q2012, higher than the corresponding quarter last year of 1.79%, reflecting our ongoing initiatives to manage the cost of funds.
Credit Quality & Impairments
The merged Bank maintained its asset quality levels with Net Impaired Financing Ratio at 0.4% as at 31 March 2012, amongst the lowest in the industry where the average ratio stands at 1.4%.
Financing Loss Coverage remains strong at 126% as at end of March 2012 as compared to 255% as at end of June 2011.
HLISB's deposits franchise strengthened from RM 9.2 billion as at 30 June 2011 to RM 15.9 billion as at 31 March 2012.
Financing to Deposit ratio improved from 58% to 76% while the ratio of Current and Savings Accounts (CASA) deposits to total deposits had further improved from 22% to 26%, post-merger.
Deposits from individuals and business enterprises reached RM 14.6 billion in 3Q2012, with a growth of 67% over June 2011 levels.
Deposits from Individuals expanded to RM 3.4 billion with a growth of 60% during the nine months of FY2012. Deposits from Business Enterprises at RM 11.2 billion recorded a growth of 69% during the nine months of FY2012.
HLISB's Total Assets grew by 73% from RM 12.2 billion as at 30 June 2011 to RM 21.0 billion as at 31 March 2012. The Net Financing base is now more than twice enlarged from RM 5.4 billion as at 30 June 2011 to RM 11.7 billion as at 31 March 2012. This achievement was driven equally by both consumer and business financing.
Consumer financing recorded a growth of RM 5.2 billion to a total of RM 9.9 billion (or +111% post-merger), while business financing improved by RM 1.3 billion to RM 2.1 billion (or +171% post-merger).
Business banking's contribution to the overall financing business had increased from 14% as at 30 June 2011 to 17% in 31 March 2012.
Liquidity & Balance Sheet Management
The Bank's liquidity franchise remains strong with the Financing to Deposit ratio improving from 58% to 76% while the ratio of Current and Savings Accounts (CASA) deposits to total deposits had further improved from 22% to 26%, post-merger.
The Single Platform Day 1 (SPD1), integration of banking systems, was successfully delivered on 5 th May 2012.
With a projected GDP growth rate for 2012 of between 4% - 5%, the business outlook in general, and the Islamic Banking industry in particular, remains positive. As such, HLISB is optimistic in continuing to build its business and financial strengths towards further growing its corporate and investment banking portfolios, and also its non-financing income segments to ensure sustainable long-term value creation.
Press Release - 16/05/2012