Equity Analysis /
Malaysia

MY : Hong Leong Bank - Lower LLP to underpin FY22F profit growth

    Winson Ng
    Winson Ng

    Financial Services Analyst

    Follow
    CGS-CIMB
    1 September 2021
    Published byCGS-CIMB

    HLB’s FY6/21 net profit was spot-on compared with our forecast and Bloomberg consensus estimate. We project net profit growth of 5.7% in FY22F, driven by a 26.9% drop in LLP, 4.5% growth in revenue, and 8% rise in BOC contributions. Reiterate Add given its above-industry loan growth, expected decline in FY22F LLP and defensive qualities against the credit risks from Covid-19.