Hong Leong’s profit plunged 20.9% to $11m

Sluggish economy and competitive market pulled earnings down.

Hong Leong Finance was not immune to the slowing economy as company profit dropped 20.9% to $11.0 in 2Q16 against $14.0m in 2Q15, and 13.3% to $25.6m in 1H16 compared to $29.5m a year ago.

According to Hong Leong’s quarterly result statement, competition among foreign banks contributed to the decline of retail customer deposits and balances, which closed at $1.0 million as at 30 June 2016, a 4% decrease compared to $11.4 million at the end of December 2015.

Group operating profit also slipped 22.5% to $15.2 million from $19.7 million in the previous corresponding quarter largely due to increases in interest expense outpacing interest income, Hong Leong added.