Hong Leong Finance posts 17.4% gain in Q3 profit, but sets cautious tone

HONG LEONG Finance's third-quarter net profit rose 17.4 per cent as net interest income gained 8.8 per cent.

The commercial lender's net profit was S$16.8 million, or 15.17 Singapore cents per share, for the quarter ended September. For the nine-month period, net profit rose 8.2 per cent to S$46.4 million, or 13.93 Singapore cents per share.

Hong Leong Finance shares closed at S$2.37 on Friday, lower by 1.25 per cent or 3 Singapore cents.

Interest on loans increased by 18.2 per cent during the quarter to S$59.5 million, helping to lift net interest income to S$40.9 million.

Allowances for doubtful debts increased to S$107.9 million as at end-September from S$105.2 million as at end-December.

Hong Leong Finance said it will remain cautious in its lending policy and focus on serving the small and medium enterprises markets and housing board dwellers.