KUALA LUMPUR (May 27): Hong Leong Financial Group Bhd's (HLFG) third-quarter net profit rose 70.19% to RM577.27 million from RM339.2 million a year earlier due to higher contributions from all of HLFG's operating divisions, comprising Hong Leong Bank Bhd, HLA Holdings Group and Hong Leong Capital Bhd, as the financial services group prudently managed its business risks against the economic impact of the Covid-19 pandemic. 

Hong Leong Bank undertakes retail banking operations while HLA and Hong Leong Capital are the insurance and stockbroking arms of HLFG respectively.

HLFG said in a statement to Bursa Malaysia today that HLFG's group revenue rose to RM1.58 billion in the third quarter ended March 31, 2021 (3QFY21) from RM1.14 billion. HLFG did not declare any dividend for 3QFY21.

"HLFG recorded a profit before tax of RM1.06 billion (RM1,063.1 million) for the current quarter ended March 31, 2021 as compared to RM603.4 million in the previous corresponding quarter, an increase of RM459.7 million or 76.2%. The increase was due to higher contributions from all the operating divisions.

"We shall continue to prudently manage our key business risks amid gradual improvement in business sentiments and the Malaysian government's targeted approach on movement restrictions to contain the (Covid-19) pandemic while allowing certain economic activities to resume," HLFG said.

For the nine months ended March 21, 2021 (9MFY21), HLFG's cumulative net profit climbed to RM1.69 billion from RM1.33 billion a year earlier while revenue grew to RM4.7 billion from RM3.83 billion.

Looking ahead, HLFG said it anticipates a gradual recovery in the Malaysian economy, underpinned by the National Covid-19 Immunisation Programme. 

"We remain cautiously optimistic that the Malaysian economy will progressively recover in 2021," HLFG said.

Hong Leong Bank and Hong Leong Capital also filed their respective quarterly financial reports with Bursa today.

According to Hong Leong Bank's filing, the group's 3QFY21 net profit rose to RM771.47 million from RM534.79 million a year earlier while revenue climbed to RM1.39 billion from RM1.13 billion.

For 9MFY21, Hong Leong Bank said cumulative net profit rose to RM2.17 billion from RM1.93 billion a year earlier while revenue climbed to RM4.13 billion from RM3.58 billion.

Meanwhile, Hong Leong Capital said 3QFY21 net profit rose to RM40.62 million from RM11.07 million a year earlier while revenue climbed to RM101.31 million from RM68.6 million.

For 9MFY21, Hong Leong Capital said cumulative net profit rose to RM132.38 million from RM57.89 million a year earlier while revenue climbed to RM328.37 million from RM239.93 million.

At Bursa's 12.30pm break today, HLFG's share price settled unchanged at RM17 while Hong Leong Bank rose four sen or 0.23% to RM17.68.

Hong Leong Capital added four sen or 0.7% to RM5.74.