The Hong Leong Islamic Bank Berhad (“HLISB” or “Bank”) expanded its asset base by 9% to RM10.8 billion from RM 10 billion, for the nine months period ended 31 March 2011. Financing growth has been the result of mortgages in the consumer segment and the business banking portfolio, with the Bank’s finance activities reporting a steady growth during the same period, with net financing and advances growing by 24% to RM 5.1 billion.
The Bank’s deposit franchise remained strong, registering a growth of 17% from RM 7.7 billion in June last year to RM 9.0 billion to provide the Bank with ample liquidity to fund its organic growth efforts. Core deposits which contributed 51% of total deposits, grew by 14% over the nine-month period. Negotiable Islamic Debt Certificates, which formed 23% of the Bank’s deposit mix, expanded by 63% over the same period
The Bank’s financial and value creation ratios mainly posted satisfactory result in the nine months period ended 31 March 2011. Net profit income grew by 6% to RM137.8 million from the corresponding period last year, driven by the better performance in financing activities in all key business segments.
Arising from the strong growth in net financing and advances, the provisioning for collective assessment rose by RM 24 million as compared to the corresponding period last year. This had the effect of lowering the Bank’s pre-tax profit to RM 66.7 million, a decrease of RM 21 million year on year. Nevertheless, the Bank is satisfied that the fundamentals remain intact and the growth in the core business activities remain steady, with strengthened underlying operational capacity to support the growth momentum.
Asset Growth to RM 10.8 Billion, Financing Growth of 24% The Bank maintained a good asset quality with a net impaired financing ratio of 0.4%, among the lowest in industry. The risk weighted capital adequacy ratio was 17%, well above the regulatory prudential requirement.
Going forward, the Bank will continue to strengthen its franchise, broaden our capabilities and increase our profile in strategic areas.