Showing posts with label HLBank. Show all posts
Showing posts with label HLBank. Show all posts

Wednesday 11 November 2015

Layoffs in Malaysian banks a symptom of slowing regional economy

BY BOO SU-LYN

Jayant Menon, a lead economist at the Asian Development Bank said banks would need to undertake cost-cutting measures due to slowing economic growth in the region. — Picture by Saw Siow Feng

















Jayant Menon, a lead economist at the Asian Development Bank said banks would need to undertake cost-cutting measures due to slowing economic growth in the region. — Picture by Saw Siow Feng
KUALA LUMPUR, Nov 1 — The recent string of restructuring by several banks in Malaysia is due to an unexpectedly bigger impact from slowing economic growth in the region amid falling government revenues, analysts have said.
Asian Development Bank lead economist (trade and regional cooperation) Jayant Menon said the sluggish economy in the region, chiefly in China but with a larger than expected effect on its trading partners such as Malaysia, would affect many sectors of the economy, including services like banking.
“With dwindling government revenues following the oil and commodity price decline, the government-linked banks can no longer expect large subsidies to weather the slowdown, and will need to undertake cost-cutting measures, such as retrenchments, to remain competitive,” Jayant told Malay Mail Online.
Bloomberg TV Malaysia reported on Tuesday that Hong Leong Bank Bhd announced its mutual separation scheme on October 21, following other banks like CIMB Group Holdings Bhd, RHB Capital Bhd and Affin Bank Bhd that had laid off workers.
Government-linked CIMB Group Holdings reportedly cut 11.1 per cent of its total workforce earlier this year, or 3,599 employees, while RHB Banking Group reportedly said last September that there was no specific target on the number of staff that RHB Capital would retrench.
RAM’s co-head of financial institution ratings Wong Yin Ching noted that some Malaysian banks have embarked on merger and acquisition exercises over the last few years that have resulted in a bigger workforce, besides relying more on technology.
“Hence, as banks pursue greater cost efficiency in this increasingly competitive environment, we have seen various measures being implemented to reduce their workforce.
“These have been undertaken with greater urgency now given the softer earnings outlook in this more challenging economic environment with slower loan growth and continued margin compression,” Wong said.
Maybank Investment Bank group chief economist Suhaimi Ilias also pointed to the mergers and acquisitions in the banking sector that have led to excess staff, like at CIMB Investment Bank following the Royal Bank of Scotland (RBS) Asia Pacific acquisition, as well as the RHB-OSK and Affin-Hwang mergers.
“Amid pressure on interest income and intense competition for fee-based income, banks have to manage their costs-income ratio (CIR) and boost revenue per worker as well as overall productivity.
“The future of banking is also changing as information and communication technology play increasing role in the provision of services,” Suhaimi said.
- See more at: http://www.themalaymailonline.com/malaysia/article/layoffs-in-malaysian-banks-a-symptom-of-slowing-regional-economy-analy#sthash.51WHcbVH.dpuf

Saturday 17 November 2012

Hong Leong Bank - Padding in ahead in 1QFY13 HOLD


FRIDAY, 16 NOVEMBER 2012

-  We are maintaining our HOLD rating on Hong Leong Bank Bhd (HLBB), with a marginal change in fair value to RM15.80/share (from RM15.90/share previously).  Our fair value is based on an ROE of 15.4% FY13F and an unchanged fair P/BV of 2.2x. 

-  HLBB managed to beat expectations in 1QFY13 with annualised net earnings coming in at 2.2% above our forecast, and 1.9% above consensus net earnings of RM1,873mil.

-  HLBB has now adopted the Malaysian Financial Reporting Standards (FRS 139) for the first time with effect from this financial quarter. There was a write-back in the collective assessment amount by RM380mil (our forecast: RM450mil) or RM0.20/share, with an adjustment in the collective assessment rate (as a percentage of gross loans less individual assessment allowance carried forward) (CA rate) to 1.6% from 2.1%. This is in line with our forecast of 1.6%.

-  Annualised loans growth was at 5.4%, lower than the company’s target loans growth of 10% to 12% for FY13F. This came mainly from a softer working capital segment, attributed to a reduction in utilisation of trade finance facilities in line with the generally weaker macro exports trend. NIM did better than expected with a 5bps improvement QoQ, in contrast to wide expectations of ongoing reduction in NIM. We believe NIM improvement came from higher LDR utilisation as well as deposit management. Non-interest income posted a strong growth of 23.7% QoQ in 1QFY13, mainly from treasury gains. 

-  Gross impaired loans declined by 3.3% QoQ in 1QFY13. Gross impaired loans ratio was at 1.6% as at end-1QFY13, compared with 1.7% in 4QFY12. 

-  Loan loss cover remains high, despite the write-back in the collective assessment balance carried forward, at 134.3% in 1QFY13. This compares to 4QFY12’s 158.2% before FRS139 adjustment, and the restated 133.4% for 4QFY12 post FRS139. There were loan loss provision write-backs totalling RM14.7mil in 1QFY13, mainly from continuing good recoveries. 

-  HLBB’s 1QFY13 surprised in terms of much better-than expected loan loss provisions, signalling that its asset quality remains strong. However, topline growth has slowed down perceptibly in 1QFY13, although this is probably a reflection of industry trend. 

-  We expect HLBB’s share price to be sustained on further evidence of:- (a) stronger-than-expected topline loan growth; (b) evidence of revenue synergy for its fee-based income from its expanded customer base; and (c) continued improvement in asset quality.  

Source: AmeSecurities

Friday 16 November 2012

HDBSVR maintains Buy on HL Bank, TP RM17


Friday November 16, 2012 MYT 8:46:00 AM


KUALA LUMPUR: Hwang DBS Vickers Research (HDSBVR) is maintaining a Buy on Hong Leong Bank and a target price of RM17.
“This is based on the Gordon Growth Model (16% ROE, 5% growth and 10% cost of equity) and implies 2.3 times CY13 book value,” it said on Friday.
HDBSVR said HL Bank remains one of its top Buys despite share price already rising by 33% year-to-date.
It believes there is still value in extracting synergies from the rejuvenated business banking platform post merger with EON Cap.
HDBSVR said the bank's net interest income was weaker on-quarter as net interest income fell, albeit less than in the previous two quarters.
“Loan and deposit growth were subdued, with loans expanding only 1.3% q-o-q (led by mortgage) while deposits inched up 0.3%. Loan-to-deposit ratio at 73% is still the lowest among peers. Non-interest income was boosted by trading income from treasury operations.
“Excluding one-off items (EON Cap merger) in 4QFY12, expenses and cost-to-income ratio (44%) were stable in 1QFY13. Operating profit was lifted by lower collective allowance (CA) charge following the adoption of MFRS139, coupled with loan recoveries,” it said.
HDBSVR said excluding one-off adjustments for MFRS139, provisions were a mere RM4mil. Share of profit from Bank of Chengdu was 10% of pretax profit, within its expectation. Capital remains strong with Tier-1 and RWCAR (bank level) at 11.7% and 14.0%, respectively.
“We believe it is a good strategy to keep balance sheet liquid in a competitive operating environment but this may cause NIM to remain under pressure as excess liquidity which is typically placed in the interbank market carries lower yields. We are retaining our loan and deposit growth assumptions of 11% and 9%, which implies 73% loan-to-deposit ratio,” said the research house.

http://biz.thestar.com.my/news/story.asp?file=/2012/11/16/business/20121116084608&sec=business

Saturday 13 October 2012

Hong Leong Bank Berhad (28.8.2012)


Date announced 28-Aug-2012
Quarter 30/6/2012
Qtr 4
FYE 30/6/2012
STOCK HLBank
C0DE  5819 

Price $ 13.68
Curr. PE (ttm-Eps) 13.7
Curr. DY 2.78%


Dividends % chg
Curr. FY0 38.00 90.0%
Prev FY1 20.00 0.0%
Prev FY2 20.00
Curr. DY  2.78%
Risk vs Returns
Upside 2.58 72%
Downside 1.00 28%
Returns
One Yr Apprec Pot.  15%
Avg Yield  6%
Avg Tot. Ann Return 21%
(for next 5 years)
INPUT VARIABLES
Today's Share Pr $ 13.68
EPS GR % 15%
Avg H. PE 12.0
Avg. L. PE 10.0
Rec. Severe Low Pr 9.64
Current PE 13.71
Signature PE 11.00
RV 125%
Rational Price 10.98
Dividends
Present Dividend 38.00
Avg % DPO 38%
Present Div Yield 2.78%
Present High Yield 3.94%
EPS G. RATE 15%
Present Market Pr. 13.68


Stock Performance Chart for Hong Leong Bank Berhad

Thursday 30 August 2012

Hong Leong Bank - Return on Retained Earnings

Hong Leong Bank
Year DPS EPS Retained EPS
2002 7.6 33.9 26.3
2003 27.3 39.2 11.9
2004 16.7 23.3 6.6
2005 16.7 31.7 15
2006 16.7 33.6 16.9
2007 17.1 41.3 24.2
2008 17.3 49.4 32.1
2009 17.4 60.3 42.9
2010 17.4 65.7 48.3
2011 18 73.1 55.1
2012
Total 172.2 451.5 279.3
From 2002 to 2011
EPS increase (sen) 39.2
DPO 38%
Return on retained earnings  14%
(Figures are in sens)

Friday 22 June 2012

Investor's Checklist: Banks

The business model of banks can be summed up as the management of three types of risk:  credit, liquidity, and interest rate.

Investors should focus on conservatively run institutions.  They should seek out firms that hold large equity bases relative to competitors and provision conservatively for future loan losses

Different components of banks' income statements can show volatile swings depending on a number of factors such as the interest rate and credit environment.  However, well-run banks should generally show steady net income growth through varying environments.  Investors are well served to seek out firms with a good track record.

Well-run banks focus heavily on matching the duration of assets with the duration of liabilities.  For instance, banks should fund long-term loans with liabilities such as long-term debt or deposits, not short-term funding. Avoid lenders that don't.

Banks have numerous competitive advantages.  They can borrow money at rates lower than even the federal government.  There are large economies of scale in this business derived from having an established distribution network.  the capital-intensive nature of banking deters new competitors.  Customer-switching costs are high, and there are limited barriers to exit money-losing endeavors.

Investors should seek out banks with a strong equity base, consistently solid ROEs and ROAs, and an ability to grow revenues at a steady pace.


Comparing similar banks on a price-to-book measure can be a good way to make sure you're not overpaying for a bank stock.


Ref:  The Five Rules to Successful Stock Investing by Pat Dorsey


Read also:
Investor's Checklist: A Guided Tour of the Market...


Tuesday 28 February 2012

Hong Leong Bank (At a Glance)



Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
27-Feb-1230-Jun-12231-Dec-111,003,356381,37124.22-
29-Nov-1130-Jun-12130-Sep-11916,730407,11027.98-
26-Aug-1130-Jun-11430-Jun-11820,792296,60020.42-
10-May-1130-Jun-11331-Mar-11577,914289,69619.95-


Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
27-Feb-1130-Jun-11231-Dec-10603,964291.43220.07-
29-Nov-1030-Jun-11130-Sep-10539.787257.20017.72-
26-Aug-1030-Jun-10430-Jun-10520,252302,94220.90-
10-May-1030-Jun-10331-Mar-10508.046227.95515.73-


ttm-EPS  92.57 sen
LFY ending 30.6.2011:  Dividend 24 sen  DPO  0.31

Price  RM 11.82
ttm-PE  12.8x  Thumbs Up
DY 2.03%

Net assets per share
31.12.2011   6.05
31.12.2010   5.13

Dividend 1H
1H 2011  11.00 sen  Thumbs Up
1H 2010    9.00 sen

PAT 1H
1H 2011  788.481m  (50.08 sen /share)  Thumbs Up
1H 2010  548.632m  (37.78 sen /share)



Stock Performance Chart for Hong Leong Bank Berhad

Business Description:
Hong Leong Bank Berhad operates in the Bank holding companies sector. Hong Leong Bank Berhad (HLB) is a Malaysia-based company. The Company is engaged in commercial banking business and in the provision of related services. The Company provides services in personal financial services, business banking and trade finance, treasury, branch and transaction banking, wealth management, investment banking, private banking and Islamic financial services. The Company's business segments include Group Consumer Banking, Group Business Banking, Global Markets, Investment Banking, Overseas Associate and Overseas Joint Controlled Entity. Group Consumer Banking focuses on servicing individual customers and small businesses. Group Business Banking focuses mainly on corporate customers. Global Markets refers to the Group's treasury and capital market operations. On 6 May 2011, the Company acquired EON Capital Berhad, and EON Bank Berhad and its subsidiaries, including EONCAP Islamic Bank Bhd and MIMB Investment Bank Bhd and its subsidiaries became part of the Company.



------------

Past Financial Year Historical data
Financial Year Ended 30/06/2011

Total Assets
30.6.2011  87,650.089m
30.6.2010  77,777.858m

Total Equity
30.6.2011  6,567.126m
30.6.2010  5,903.363m

Revenue
30.6.2011  2,542.457m
30.6.2010  2,085.079m

PAT
30.6.2011  1,134.928m
30.6.2010  1,009.132m


Net assets per share
30.6.2011  5.1300
30.6.2010  4.4900

EPS

30.6.2011  78.12 sen
30.6.2010  69.61 sen




Dividends per share
30.6.2011  24.00 sen
30.6.2012  24.00 sen


FY Ending 30.6.2011

Net Profit Margin  44.6%
Asset Turnover  0.029x
Financial Leverage  13.35x

ROA  1.2934%  Thumbs Up
ROE   17.27%   Thumbs Up
DPO   0.31






Tuesday 29 November 2011

Hong Leong Bank


Company Name
:
HONG LEONG BANK BERHAD  
Stock Name
:
HLBANK  
Date Announced
:
29/11/2011  
Financial Year End
:
30/06/2012
Quarter
:
1
Quarterly report for the financial period ended
:
30/09/2011
The figures
:
have not been audited

Converted attachment :



Please attach the full Quarterly Report here:
HLB Press Release (30 09 11).pdf
HLB Financial Statement (30 09 11).pdf


Remark:








Currency
:
Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION
30/09/2011


       
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
       
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
       
30/09/2011
30/09/2010
30/09/2011
30/09/2010
       
$$'000
$$'000
$$'000
$$'000
1Revenue
916,730
539,787
916,730
539,787
2Profit/(loss) before tax
523,841
317,381
523,841
317,381
3Profit/(loss) for the period
407,110
257,200
407,110
257,200
4Profit/(loss) attributable to ordinary equity holders of the parent
407,110
257,200
407,110
257,200
5Basic earnings/(loss) per share (Subunit)
27.98
17.72
27.98
17.72
6Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00








AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7Net assets per share attributable to ordinary equity holders of the parent ($$)
5.4100
5.1300


Remarks :
The Net assets per share attributable to ordinary equity holders of the parent (RM) is computed as Total Shareholders' Funds (excluding Minority Interest) divided by total number of ordinary shares in circulation.

Market Watch




Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
29-Nov-1130-Jun-12130-Sep-11916,730407,11027.98-
26-Aug-1130-Jun-11430-Jun-11820,792296,60020.42-
10-May-1130-Jun-11331-Mar-11577,914289,69619.95-
23-Feb-1130-Jun-11231-Dec-10603,964291,43220.07-
ttm-EPS  88.42 sen
Price  RM 10.40
Trailing PE  11.8x



Share Price Performance
   High
Low
Prices 1 Month
10.840
  (14-Nov-11)
10.020
  (29-Nov-11)
Prices 3 Months12.800  (09-Sep-11)9.450  (23-Sep-11)
Prices 12 Months13.800  (11-Jul-11)9.050  (29-Nov-10)
Volume 12 Months41,356  (27-Oct-11)695  (13-Dec-10)




Stock Performance Chart for Hong Leong Bank Berhad


















Current Price (11/18/2011): 10.54
(Figures in Malaysian Ringgits)
Market Cap: 15,961,071,569
Shares Outstanding: 1,514,333,166
Closely Held Shares: 1,013,798,888