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HLISB - Recorded net profit of RM 21 million with sustainable growth in revenue
Kuala Lumpur, 16 November 2010
The underlying business operation of the Bank remained strong as it recorded a 16% increase in revenue. Net profit income before allowance and reserve rose 6% to RM 48 million compared to RM 45 million last year.
The Bank's Non Financing Income improved by 10% to RM 4.3 million, underpinned by an increase in trading activities during the period.
The Bank posted a net profit of RM 22 million for the first quarter ended 30 September 2010 compared to RM 29 million in the previous corresponding period. The net profit was slightly lower due to a transfer of revenue to the reserve account during the quarter. The transfer was part of the Bank's initiatives to build a sustainable balance of reserve account to support the future growth of deposits.
Total assets improved by 11% to RM 11 billion from RM 10 billion with net financing and advances growing by 4% to RM 4.3 billion. Financing growth was principally driven by an expansion in the consumer business. Deposit base remained strong with a growth of 15% from RM 7.7 billion last year to RM 8.9 billion, ensuring the Bank of ample liquidity for continued business growth.
The Bank maintained a good asset quality with Gross Impaired Financing Ratio of 0.9%, among the lowest in industry. The Risk Weighted Capital Adequacy Ratio was at 21%, well above the regulatory prudential requirement.
The Bank's growth initiatives across different business areas in Business Banking, Islamic Investment Banking and Treasury are on track. An active player in the secondary Sukuk market, the Bank's Treasury Division showed a 19% quarter-on-quarter improvement in trading income, on the back of a 17% growth in treasury assets and two-fold increase in trading volume. This further cements the Bank's status as an appointed Islamic Principal Dealer for the Islamic Sukuk and interbank market in the country.
-END-Press Release - 16/11/2010
