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Hong Leong Finance Q2 net profit falls 11.1% to S$26.3m

HONG Leong Finance on Thursday said it made a net profit of S$26.3 million in the second quarter, down 11.1 per cent from the same period a year earlier.

Interest income and hiring charges in the three months ended June 30 came to S$98.1 million, up 12.3 per cent.

Interest expense rose 41.5 per cent to S$47.2 million. Net interest income fell 5.8 per cent to S$50.9 million, driven by higher cost of funds outpacing the improved loan yield amid a competitive interest rate environment, the group said.

Net interest margin was down by 14 basis points in the second quarter.

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An interim dividend of five Singapore cents will be paid on Sept 11, the same as last year.

Earnings per share was 23.56 Singapore cents, down from 26.53 Singapore cents in the second quarter last year.

Net loan assets stood at S$11.2 million as at June 30. Net asset value per share was S$4.22 as at June 30.

The counter fell one Singapore cent or 0.37 per cent to S$2.71 on Thursday before the results were announced.