Hwang-DBS records 39% fall in 2Q net profit

Hwang-DBS records 39% fall in 2Q net profit
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Thursday, 28 March 2013 09:05


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KUALA LUMPUR: HWANG-DBS (M) BHD [] recorded a net profit of RM9.5 million for its second quarter ended Jan 31, 2013, a 39% plunge from RM15.5 million posted in the previous corresponding quarter.

But it recorded a quarterly revenue of RM110.9 million, a gain from RM91.5 million previously.

In its explanatory notes accompanying the financial statements, Hwang-DBS said the lower profitability was due mainly to lower net gain on securities held-for-trading, losses incurred on its derivatives portfolio, a reduction in stockbroking income, higher marketing expenses as well as increases in loan-loss provisioning.

For its half-yearly results, Hwang-DBS recorded RM18.7 million in net profit, lower than its RM29.6 million from the same period last year. Revenue was RM224.3 million, a 28% gain from the previous year’s RM175 million.

The higher operating revenue was primarily due to income generated from investment management activities, foreign exchange transactions and an increase in interest income from its securities portfolio as well as higher interest income, Hwang-DBS said in its notes.

The group said it foresees the rest of the 2013 financial year “continuing to be affected by the volatile and challenging economic environment.”