KUALA LUMPUR: Hong Leong Bank Bhd posted net profit of RM227.95 million, up 10.4% from RM206.5 million a year ago due to higher net interest income, a bigger share of profit from Bank of Chengdu and higher net income from its Islamic banking business.

It said on Monday, May 24 that revenue rose 3.4% to RM508.04 million while earnings per share were 15.73 sen versus 14.25 sen.

"The increase was due to higher net interest income by RM9.3 million, higher share of profit from Bank of Chengdu by RM2.9 million, higher net income from Islamic banking business by RM7.6 million and lower taxation expense by RM30.1 million.

"This is however offset by higher other operating expenses by RM22.4 million and higher allowance for losses on loans, advances and financing by RM6.3 million," it said.

For the nine-month period, net profit slipped 2.67% to RM686.91 million from RM705.97 million. Revenue was lower at Rm1.54 billion versus RM1.61 billion.

"The decrease (in net profit) was due to lower net interest income by RM30.1 million, lower non interest income by RM57.9 million, higher
allowance for losses on loans, advances and financing by RM35.4 million and higher other operating expenses by RM36.5 million.

However, Hong Leong Bank said this was mitigated by higher share of profit from Bank of Chengdu by RM14.2 million,impairment writeback of RM6.1 million as oppose to impairment charge of RM33.2 million in the previous financial year-to-date, higher net income from Islamic banking business by RM21.8 million and lower taxation expense by RM65.8 million.