Better earnings prospects for group

Hong long bank which achieved record profits for the sixth consecutive year, is on a new threshold of earnings with enhanced contribution from the merged  Hong long bank group.
Recognising the concerns over a potential economic slowdown, HLFG president says the domestic economy is still positive and Malaysian companies are on a stronger footing.
As a large part of HLFG's businesses are still centered in Malaysia and the bulk of its overseas income coming from its associate share in the Bank of chengudu Choong does not expect HLFG to be specifically nor significantly affected by adverse European or US exposures except via a general worldwide economic downturn.
“Given our careful and prudent business model, coupled with our customer strength, we expect to fare better in any financial crises. We have also been very disciplined in the mergers and acquisitions (M&As) completed in the past years such that we do not believe we have overpaid more than fair market value over the longer term. Looking forward, despite financial turbulence, we are prepared to sacrifice short-term profits for long-term gains, and will also look out for any opportunities that may emerge in this period,” says Choong
He adds that there is no fixed dividend policy for the group. “We want the flexibility to balance short-term needs of , and long-term needs of the company,'' says Choong.
In this respect, the group has made its assessment and given the appropriate market yield with the remainder for re-investment.
Big steps forward
“For the last five years, we have been re-engineering the group and laying the foundation for growth,'' he tells StarBizWeek. “It is now time to accelerate the rate of growth and double or triple the business that is made of commercial banking, insurance and investment banking.''
The full value from the synergies arising from the enlarged commercial banking operations is expected by 2013; some merger costs may still be experienced in 2012.
The insurance business is the “hidden star” of the group, and the target is to grow its agency force to 12,000 by financial (FY) 2013 from 8,000 currently.


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