Hong Leong Bank and CIMB diverge on Bursa as investors react to latest results

KUALA LUMPUR (Nov 30): CIMB Group Holdings Bhd and Hong Leong Bank Bhd (HLB) were at opposite ends of the spectrum this morning, with the former being one of the top losers on Bursa Malaysia and the latter the local bourse’s top gainer.

CIMB was the fourth top loser on Bursa Malaysia today, falling by 3.92% or 15 to RM3.68 apiece at 9.52 am. At this price, CIMB now has a market capitalisation of RM36.52 billion. It saw 14.12 million shares transacted.

In contrast, Hong Leong Bank was the local bourse’s top value gainer at the time of writing. It was up by 3.29% or 56 sen at RM17.58 apiece, valuing it at RM38.11 billion. It saw 110,400 shares change hands.

Hong Leong Bank's parent Hong Leong Financial Group Bhd posted a minor gain as well, rising by 0.62% or 10 sen to RM16.20, valuing it at RM18.69 billion.

The diverging performances of CIMB and Hong Leong Bank may be attributed to their latest quarterly results posted last Friday.

Hong Leong Bank’s net profit was up by 5.9% to RM728.9 million in the first quarter ended Sept 30, 2020 (1QFY21), from RM688.68 million, while revenue grew by 11.01% to RM1.35 billion, from RM1.22 billion in the corresponding quarter last year.

CIMB saw its net profit for the third quarter ended Sept 30, 2020 (3QFY20) fall by 80.8% to RM194.4 million, from RM1.01 billion a year prior. Its revenue or operating income for the quarter slipped 3.7% to RM4.46 billion from RM4.64 billion.

As for some of the other banks listed on Bursa Malaysia, Public Bank Bhd also saw a minute gain, rising by 0.21% or four sen higher at RM18.64, valuing it at RM72.36 billion. It saw 726,400 shares done.

Alliance Bank Malaysia Bhd was also up, rising by 0.39% or a sen higher at RM2.59, giving it a market value of RM4.01 billion.

Meanwhile, Affin Bank Bhd was down by 1.88% or three sen at RM1.57, valuing it at RM3.27 billion, with 352,100 shares done.

As for Malayan Banking Bhd (Maybank), it dipped by 0.36% or three sen at RM8.26, valuing it at RM92.85 billion. It saw 553,900 shares transacted.

The Financial Services Index, which counts banks as constituents, was down by 0.08% or 11.88 points at 14,251.22 points.