Hong Leong Finance (Hong Leong Finance)'s net profit increased by 10% year-on-year to 51.5 million yuan as of the end of December and the second half of fiscal year 2024, mainly due to the expansion of the net interest margin (NIM). Driven by this, the group's net profit in fiscal year 2024 increased by 11.5% year-on-year to 104.1 million yuan.

The results released by Fenglong Finance on Friday (February 21) showed that the group's six-year net interest margin expanded to 1.6% due to the growth of return on assets and the “moderate” decline in financing costs. Because of the effective management of loan and deposit repricing costs, net interest income in the whole fiscal year of 2024 increased by 11.3% year-on-year to 225.1 million yuan.

Current assets are well managed, with other interest incomes in the second half of fiscal year 2024 and the full year increasing by 9.5% and 25.1% year-on-year to RMB 41.7 million and RMB 88.5 million respectively.

Affected by the sluggish market sentiment, financial and real estate financing activities remained inactive, and loan expenses and commission income in the second half of the year and the whole year decreased by 26.0% and 18.6% year-on-year to RMB 4.1 million and RMB 8.1 million. As for the basic stability of the loan portfolio, the total net loan assets for the whole year increased slightly by 0.1% year-on-year to 9 million yuan.

Looking ahead, Honglong Finance will be committed to using digital solutions to continuously improve customer experience and convenience. At the same time, strengthen environmental, social and governance (ESG) programs to meet the ever-changing needs of the market. In an environment where the political situation remains tense, the Group is confident that it will uphold rigorous risk management guidelines to provide lasting value to stakeholders.

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Guo Lingming, chairman of Honglong Finance, said in a statement: “Digital applications accelerate the change of the financial landscape. We have accepted this transformation and are used to drive growth and enhance customer experience. Our pilot program of the digital financial service platform HLF Digital is a key milestone. Because it allows users to empower their financial journey with their fingertips.”

He said the pilot platform has exceeded more than 30% of the initial target, and promised to add more features when it is fully launched this year, allowing customers to enjoy all-weather financial transaction convenience through integrated channels while continuing to provide online Under the personalized service of account managers.