Equity Analysis /

MY : Hong Leong Bank - Low LLP in 1QFY22 not sustainable

    Winson Ng
    Winson Ng

    Financial Services Analyst

    29 November 2021
    Published by

    We deem HLB’s 1QFY22 CNP (adjusted for CM) in line at 28.7% of our full-year forecast, as we project weaker quarters ahead. We expect its LLP to increase in the coming quarters as its low CCOR of 13bp in 1QFY22 will not be sustainable, in our view. Reiterate Add given the strong growth in associate contribution from BOC and its asset quality, which ranks among the best in the sector.