Hong Leong Islamic Bank (HLIB) posted a higher pre-tax profit of RM 81 million or 30% better than the previous year.

Total distributable income was higher at RM 323 million or 5% better due to slightly higher income derived from financing and treasury operations, coupled with a lower allowance for losses on financing. Balance sheet net financing was RM 3.6 billion, lower from RM 3.9 billion a year ago as the business continues to be re-balanced for risk-reward while under-going a re-positioning to focus more into Islamic Investment Banking, Corporate & Commercial, Wealth Management and Treasury business. Underlying all these will be new products and processes, developing a wide delivery channel alliance and working with Group support to build a strong presence in the market.

This was helped by the lower operating expense, which benefited from the rationalization exercise carried out on the shared service support from the parent bank. Income attributable to the depositors was higher as funding cost increased.

Strong Capital position

HLIB's capital adequacy ratio was higher at 16.01% for its core capital and 17.54% for its total capital adequacy. Earning per share was 11.36 sen against 11.83 sen last year.