HwangDBS 3Q profit falls 38% to RM11.4 m

by **Cals** Thu 13 Jun 2013, 00:16

Business & Markets 2013

Written by Charlotte Chong of theedgemalaysia.com

Wednesday, 12 June 2013 18:53

A + / A - / Reset

KUALA LUMPUR (June 12): Hwang-DBS Malaysia Bhd posted a net profit of RM11.4 million in its third financial quarter ended April 30, 2013, a decrease of 38% from RM18.32 million a year ago.

However, its revenue increased 0.97% to RM111.03 million from last year’s RM109.96 million.

Earnings per share was 4.45 sen, down from 7.18 sen a year earlier.

For nine months ended April 30, the group’s net profit stood at RM30.04 million, down 37.36% year-on-year from RM47.95 million. Its revenue however increased to RM335.33 million from RM284.93 million a year ago.

The financial services group told Bursa Malaysia in a filling today that the reduction in profitability for the current financial period was due to higher loan loss provisioning, corresponding increase in commission expense, lower net gain for its securities and derivatives portfolio and increased promotion/marketing expenses.

It added that the lower profit for the current quarter was due to unfavourable effect of foreign exchange, lower brokerage income and reduction in net gain on securities held-for-trading, partly cushioned by increase in income from investment management activities and increase in net unrealised gain on derivatives portfolio.

As for its higher revenue registered during the quarter, HwangDBS said that it was due to the increase in income generated from investment management activities and net gain arising from foreign exchange transactions coupled with higher interest income from treasury and lending activities.

Moving forward, the group expects the Malaysian economic fundamentals to remain resilient on the back of sound fiscal policy, strong domestic activities and spinoffs from the government’s economic transformation programmes.

“However, there are still signs of uncertainties in the external front and threats of continued recession in the euro zone could weigh down on the growth momentum in the country,” it said.

“Barring any adverse developments, the board of directors is of the view that the group will turn in satisfactory performance in the remaining quarter of the financial year ending July 31, 2013.”