Islamic Assets Grow to RM13.7 Billion
Kuala Lumpur, 29 November 2011
Hong Leong Islamic Bank Berhad ("HLISB" or "Bank") sustains its continued growth momentum with a 12% (or RM1.5 billion) growth in total assets for the first quarter ended 30 September 2011. HLISB's total assets, which now stands at RM13.7 billion, was supported by a healthy growth in financing activities which recorded an increase of 8% to RM5.8 billion as compared with the preceding quarter. The Bank's financing growth was driven by both the consumer banking and business banking segments which respectively expanded by 7% (or RM344 million) and 14% (or RM108 million) - marking the continued broad-based demand for shariah-compliant financing products offered by HLISB.
The financing growth is funded by a robust expansion of the Bank's deposit base, which grew by 11% from RM9.2 billion to RM10.2 billion during the quarter.
Additionally, the Bank's financial and value creation ratios posted positive growth with financing income growing by 15% quarter-on-quarter to RM127.6 million while net financing income grew by 4% quarter-on-quarter to RM46.9 million, driven by better performance in financing activities in all key business segments.
The Bank also maintained its asset quality levels with gross impaired financing ratio stable at 0.7% as at September 2011, against the industry average of 2. 6 %.
The Bank's first quarter pre-tax profit stood at RM12.7 million. The Bank is satisfied that the fundamentals remain intact and that the growth in the core business activities remains steady, with strengthened underlying operational capacity to support growth.
The capital adequacy ratio remains strong with its risk weighted capital ratio at 16% as at 30 September 2011, after accounting for dividends proposed for the financial year 2011. The Bank continues to ensure its capital position is kept well above the minimum regulatory prudential thresholds.
-END-Press Release - 29/11/2011
Group Corporate Affairs & Public Relations
Hong Leong Bank Berhad
DID: 03-20808888 ext 3281