HONG Leong Finance : S41 0% posted a 3.2 per cent rise in net profit to S$46.6 million for the first half ended Jun 30, 2023, driven by higher net interest income and write-back of expected credit loss allowances.

Earnings per share stood at 20.78 Singapore cents, compared with 20.14 cents the year before.

The board has declared an interim dividend of 3.5 Singapore cents per share, down from 3.75 cents a year ago, to be paid on Aug 31.

Net interest margin fell four basis points to 1.48 per cent, as the rise in funding costs outpaced the lift in asset yields amid the rise in interest rates. Still, improved interest yields drove net interest income to rise 5.2 per cent to S$101.5 million.

Fee and commission income fell 45.7 per cent to S$4.4 million. Hong Leong Finance blamed it on subdued lending activities for development and club loans in current financial markets.

Net allowances for loans and other financial assets was a net reversal of S$2.7 million, compared with a net allowance of S$1.8 million the year before. This included a reversal of S$2.1 million in allowances for non credit-impaired loans on revised risk parameters, and a reversal of S$600,000 in allowances for credit-impaired loans.

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The non-performing loan ratio was stable at 1.6 per cent. Hong Leong Finance had net loan assets of S$11.7 billion as at Jun 30, largely unchanged from Dec 31, 2022 and 1.8 per cent up year on year.

The counter closed flat at S$2.56 on Thursday (Aug 3).