Revenue for the quarter rose 10.4% to RM1.7 billion from RM1.54 billion previously, the group said in a filing with Bursa Malaysia today.

The increase in the net profit was mainly due to higher contributions from the commercial banking and insurance divisions, it said.

Meanwhile, Hong Leong Bank Bhd recorded a higher net profit of RM1.04 billion for Q2 FY2022, a RM301.4 million or 40.8% increase, compared to RM738.59 million in the same quarter of 2021.

On revenue, it advanced to RM1.49 billion from RM1.37 billion previously.

The increase in net profit was mainly due to a higher net interest income, a lower allowance for impairment losses on loans, advances and financing of RM7.9 million and a higher share of profit from associate companies of RM121.9 million.

“However, this was mitigated by higher operating expenses of RM33.1 million and allowance for impairment losses on financial investments and other assets of RM900,000,” it said.

HLFG president and CEO Tan Kong Khoon said the global economy is anticipated to decelerate in 2023. This reflects the monetary policy tightening by major central banks aimed at tackling persistent inflation as well as rising geo-political tensions among major economic powers.

Despite global headwinds and slower external demand, he said the reopening of China’s border, the realisation of domestic infrastructure projects, and a rise in tourist arrivals are expected to boost the local economy.

“The economy is expected to grow at a moderate pace, driven by sustained domestic demand underpinned by improvements in employment market conditions while local monetary policy remains non-restrictive.

“We are cautiously optimistic on the outlook and the resiliency of Malaysia’s economy and shall navigate our businesses prudently amid a challenging operating environment,” he added.