KUALA LUMPUR, Aug 30 — Hong Leong Bank Bhd’s net profit for the financial year ended June 30, 2021 (FY2021) rose to RM2.86 billion from RM2.49 billion in FY2020.

Revenue increased to RM5.47 billion from RM4.78 billion previously.

In a filing with Bursa Malaysia today, the bank said the improved net profit by 14.7 per cent year-on-year (y-o-y) was underpinned by higher topline, tight cost management, and robust contributions from associates.

“Gross loans and financing saw a healthy growth of 6.8 per cent y-o-y, driven by expansion in key segments and funding disbursed to support small and medium enterprises (SMEs) and corporate businesses as part of their cashflow needs during the past year.

“Our asset quality remained healthy as we recorded a low gross impaired loan (GIL) ratio of 0.46 per cent while concurrently, ensuring our customers receive the necessary assistance throughout their recovery journey,” the bank said.

It also said that until all economic sectors reopen, the bank has built up additional pre-emptive impairment buffers.

The bank has also declared a final dividend of 35.22 sen per share, bringing the total dividend to 50.0 sen per share for FY2021, with a dividend payout ratio of 36 per cent.

Group managing director and chief executive officer Domenic Fuda said amid the challenging business environment, the bank delivered a resilient set of results for FY2021.

“The bank continued to maintain a sharp focus on helping customers where it was needed, kept to a disciplined cost structure and continued investments in growth opportunities that will deliver sustainable positive outcomes to our stakeholders,” he said.

Fuda also noted that the reimplementation of the movement control order, reintroduced to combat the resurgence of Covid-19 cases, had impacted the economic recovery momentum.

“Progress in the vaccination rate is key to the economic recovery in Malaysia and globally, leading to the eventual opening of all economic sectors and social activities, followed by cross border activities in the future.

“We are cautiously optimistic that progress in this regard is underway and the local and global economies should enter 2022 with better recovery traction,” he said. — Bernama