Hong Leong Finance sees 38% drop in FY20 earnings of $63.9 mil on lower net interest income

Hong Leong Finance has posted earnings of $63.9 million for the FY2020 ended December, 38% lower than earnings of $103.1 million in the corresponding period the year before.

For the 2HFY2020, the group saw profit after tax (PAT) fall 45.8% y-o-y to $27.4 million, lower than the $36.5 million posted in 1HFY2020, which fell 30.5% y-o-y.

The lower figure was attributable to the lower net interest income (NII), driven by the compressed net interest margin (NIM) due to falling interest rates in March 2020, which were, in turn, attributable to the Covid-19 pandemic.