Hong Leong Finance Limited

Full Year Financial Statements And Dividend Announcement

• Revenue: SGD 212.31M

  Decreased 18% Year-on-Year

  For the second half 2023, net ineterest margin was lower at 1.4% compared with the corresponding prior period, bringing net interest income down by 30.9% to S$100.7 million. Net interest income for 2023 decreased by 16.5% to S$202.2 million, on an overall lower net interest margin of 1.5% (2022: 1.8%). Fee and commission income decreased by 32.8% to S$5.5 million for the second half 2023 and 39.2% to S$10.0 million for the full year 2023 from lending business due to subdued property financing activities in the financial market.

• Net Profit: SGD 93M

  Decreased 29% Year-on-Year

  Compared with a year ago, net profit declined by 28.7% to lower net interest margins on moderated loan growth, and higher staff costs, offset by a net reversal in allowance for non credit-impaired loans.

• Return on Equity (ROE): 5%

  Decreased 30% Year-on-Year

• Dividend Per Share: SGD 0.13

  Decreased 27% Year-on-Year

  A Final Dividend of 9 cents per share (tax exempt one-tier) is recommended by the directors for approval by shareholders in respect of the year ended 31 December 2023.

• Outlook

  Against the above backdrop and alongside with continuing geopolitical uncertainty, HLF will remain prudent and committed in driving sustainable business growth and practices, fostering product and technology innovation and delivering value to all our stakeholders. In alignment with our strategic vision and backed by a robust corporate governance, we are confident in our ability to navigate the evolving business landscape through customer-centric value propositions and sustainable return to shareholders.

  Sources: Hong Leong Finance Limited Financial Report