SINGAPORE: Hong Leong Finance has reported its financial results for the fiscal year 2023, ending on Dec 31, showing a notable dip in earnings compared to the previous year.
The Edge Singapore reports that Hong Leong Finance earnings stood at S$93.4 million for FY2023, marking a 28.7% decrease from the S$130.9 million recorded in FY2022.
One significant aspect of this decrease was the net interest income, which fell by 16.5% year-on-year to S$202.2 million. This decline was influenced by an overall lower net interest margin of 1.5% throughout the fiscal year.
Moreover, fee and commission income experienced a substantial decrease of 39.2% year-on-year, amounting to S$10.0 million for FY2023. This primarily stemmed from subdued property financing activities within the financial market.
On the expenditure side, staff costs rose 9.6% year-on-year to S$80.5 million for the full-year period. The increase was mainly driven by annual increments and resource investments to expedite key digital transformation initiatives and improve the company’s compliance and risk management functions.
However, other operating expenses decreased 3.8% year-on-year to S$16.9 million in FY2023 due to well-controlled business transactions and marketing expenses.
In terms of loan management, there was a net reversal of S$4.6 million for loans and other financial assets during FY2023. This was due to a lower allowance for non-credit-impaired loans from updated risk parameters.
Looking ahead, Hong Leong Finance expresses cautious optimism about Singapore’s economic landscape. Chairman Kwek Leng Beng stated:
“We remain resolute in seizing strategic opportunities and exercising financial prudence, while supported by strong governance practices. We understand that navigating the financial landscape requires a delicate balance between business performance and sustainable value creation”
He further elaborated on the company’s future plans, stating, “Leveraging digitalisation for enhanced customer experience, we will increase our efforts to expand into digital and online services to serve our customers.”
He added, “Through this integrated omnichannel approach, our customers can enjoy round-the-clock convenience for financial transactions alongside our existing face-to-face branch and relationship manager services.” /TISG
Read also: GuocoLand: 1HFY2024 earnings S$66.2M, 12% higher y-o-y, revenue surged 61%
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