Hong Leong Finance H2 net profit falls 45% to S$46.8 million

HONG Leong Finance reported on Friday (Feb 23) a forty five.4 per cent decline in web revenue for the second half of 2023, on the again of decrease web curiosity revenue.

Net revenue for the six months ended Dec 31, 2023 fell to S$46.8 million from S$85.8 million in the identical interval the yr earlier than. The administrators have proposed a last dividend of S$0.09 per share, down from the ultimate dividend of S$0.1325 per share in FY22.

While Hong Leong Finance reported a 40.7 per cent year-on-year improve in curiosity revenue and hiring prices within the second half of the yr, web curiosity revenue and hiring prices have been 30.9 decrease amid increased curiosity bills. Interest bills tripled to S$195.1 million from S$64.4 million in H2 FY22.

Fee and fee revenue fell within the second half, declining to S$5.5 million from S$8.3 million in H2 FY22.

For the total yr, the group’s web revenue fell 28.7 per cent to S$93.4 million, with increased curiosity bills additionally weighing on the underside line.

Full-year curiosity revenue and hiring prices rose 68.8 per cent to S$569.1 million, however curiosity bills additionally rose 286.4 per cent to S$366.9 million, leading to web curiosity revenue and hiring prices falling 16.5 per cent to S$202.2 million.

Chairman Kwek Leng Beng mentioned in a press release that the group is cautiously optimistic concerning the financial panorama of Singapore within the coming yr.

“We remain resolute in seizing strategic opportunities and exercising financial prudence, while supported by strong governance practices. We understand that navigating the financial landscape requires a delicate balance between business performance and sustainable value creation,” he mentioned.

Net asset worth per share rose to S$4.59 as at December 2023, from S$4.55 the yr earlier than.

Shares of Hong Leong Finance closed unchanged at S$2.56 on Friday, earlier than the earnings announcement.

Source: www.businesstimes.com.sg”