Showing posts with label HLBank. Show all posts
Showing posts with label HLBank. Show all posts
Saturday, 24 February 2024
Tuesday, 20 February 2024
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
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.
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 | |
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...
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 | Qtr | Period End | Revenue RM '000 | Profit/Lost RM'000 | EPS | Amended | ||||||
| 27-Feb-12 | 30-Jun-12 | 2 | 31-Dec-11 | 1,003,356 | 381,371 | 24.22 | - | ||||||
| 29-Nov-11 | 30-Jun-12 | 1 | 30-Sep-11 | 916,730 | 407,110 | 27.98 | - | ||||||
| 26-Aug-11 | 30-Jun-11 | 4 | 30-Jun-11 | 820,792 | 296,600 | 20.42 | - | ||||||
| 10-May-11 | 30-Jun-11 | 3 | 31-Mar-11 | 577,914 | 289,696 | 19.95 | - | ||||||
| Announcement Date | Financial Yr. End | Qtr | Period End | Revenue RM '000 | Profit/Lost RM'000 | EPS | Amended | ||||||
| 27-Feb-11 | 30-Jun-11 | 2 | 31-Dec-10 | 603,964 | 291.432 | 20.07 | - | ||||||
| 29-Nov-10 | 30-Jun-11 | 1 | 30-Sep-10 | 539.787 | 257.200 | 17.72 | - | ||||||
| 26-Aug-10 | 30-Jun-10 | 4 | 30-Jun-10 | 520,252 | 302,942 | 20.90 | - | ||||||
| 10-May-10 | 30-Jun-10 | 3 | 31-Mar-10 | 508.046 | 227.955 | 15.73 | - | ||||||
ttm-EPS 92.57 sen
LFY ending 30.6.2011: Dividend 24 sen DPO 0.31
Price RM 11.82
ttm-PE 12.8x
DY 2.03%
Net assets per share
31.12.2011 6.05
31.12.2010 5.13
Dividend 1H
1H 2011 11.00 sen
1H 2010 9.00 sen
PAT 1H
1H 2011 788.481m (50.08 sen /share)
1H 2010 548.632m (37.78 sen /share)
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%
ROE 17.27%
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).pdfHLB 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 | ||
$$'000 | $$'000 | $$'000 | $$'000 | ||
| 1 | Revenue | 916,730 | 539,787 | 916,730 | 539,787 |
| 2 | Profit/(loss) before tax | 523,841 | 317,381 | 523,841 | 317,381 |
| 3 | Profit/(loss) for the period | 407,110 | 257,200 | 407,110 | 257,200 |
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent | 407,110 | 257,200 | 407,110 | 257,200 |
| 5 | Basic earnings/(loss) per share (Subunit) | 27.98 | 17.72 | 27.98 | 17.72 |
| 6 | Proposed/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 | ||||
| 7 | Net 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 | Qtr | Period End | Revenue RM '000 | Profit/Lost RM'000 | EPS | Amended | ||||||
| 29-Nov-11 | 30-Jun-12 | 1 | 30-Sep-11 | 916,730 | 407,110 | 27.98 | - | ||||||
| 26-Aug-11 | 30-Jun-11 | 4 | 30-Jun-11 | 820,792 | 296,600 | 20.42 | - | ||||||
| 10-May-11 | 30-Jun-11 | 3 | 31-Mar-11 | 577,914 | 289,696 | 19.95 | - | ||||||
| 23-Feb-11 | 30-Jun-11 | 2 | 31-Dec-10 | 603,964 | 291,432 | 20.07 | - | ||||||
ttm-EPS 88.42 sen
Price RM 10.40
Trailing PE 11.8x
Share Price Performance | ||||||||||||||||||||||||||||||||
 |
| | ||||||||||||||||||||||||||||||
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
Subscribe to:
Posts (Atom)