The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Hong Leong Bank Bhd, Malaysia’s fifth-largest bank by assets, reported a strong financial performance for the fourth quarter of FY2024, with net profit rising nearly 20% year-on-year (y-o-y) to RM1.03 billion. This growth was driven by higher operating income and a writeback of provisions. The bank also declared a final dividend of 43 sen per share.
Key Highlights:
Strong Financial Performance: For the quarter ended June 30, 2024, Hong Leong Bank’s net profit increased by 19.2% y-o-y to RM1.03 billion, supported by a 10.7% growth in net interest income and a 26.5% increase in non-interest income. The bank also benefited from a RM31.15 million writeback of impairment on loans.
Dividend Announcement: The bank declared a final dividend of 43 sen per share for the current quarter, up from 38 sen in the same period last year, reflecting its strong financial position.
Growth in Loans and Asset Quality: As of June 30, Hong Leong Bank’s gross loans and financing grew 7.3% y-o-y to RM194.9 billion, with improvements in its gross impaired loans ratio, which decreased to 0.53% from 0.57%. The bank’s loan impairment coverage ratio was robust at 155.0%, or 225.0% when including the value of securities held.
For the full financial year FY2024, Hong Leong Bank reported a 9.9% increase in net profit to RM4.20 billion, with steady growth in both net interest income and non-interest income, as well as improved asset quality metrics.
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