How did international operations, particularly Bank of Chengdu, impact profits?

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International operations contributed significantly to Hong Leong Bank's pre-tax profit in FY2022, largely due to the performance of Bank of Chengdu.

International operations represented 26.1 per cent of Hong Leong Bank's pre-tax profit for the financial year ended June 30, 2022. This substantial contribution was primarily driven by the strong performance and robust financial results from Bank of Chengdu, its subsidiary in China. The bank's overall net profit for FY2022 saw a 15 per cent increase to RM3.29 billion.
Contribution of International Operations

In the financial year 2022, international operations constituted a significant portion of Hong Leong Bank's profitability, accounting for 26.1 per cent of its pre-tax profit. This highlights the growing importance of its overseas ventures in the bank's overall financial performance. The bank's total revenue for FY2022 reached RM5.60 billion.
Bank of Chengdu's Role

The robust contribution from Bank of Chengdu was identified as the primary driver behind the strong performance of Hong Leong Bank's international operations. This Chinese subsidiary played a pivotal role in bolstering the bank's pre-tax profit figures for FY2022. Hong Leong Bank's gross loans and financing expanded by eight per cent year-on-year to RM168.2 billion during this period.
Overall Financial Performance

Hong Leong Bank reported a 15 per cent surge in net profit for FY2022, reaching RM3.29 billion from RM2.86 billion in the preceding year. This growth was supported by an increase in revenue to RM5.60 billion and a healthy gross impaired loan ratio of 0.49 per cent. The bank's return on equity improved to 10.9 per cent for the financial year.

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How did international operations, particularly Bank of Chengdu, impact profits?

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