EON Capital first quarter pre-tax profit up 25.3% to $55.05mn

The earnings growth was fuelled by higher net interest income, Islamic banking earnings and non-interest income.

EON Capital Bhd's pre-tax profit for the first quarter ended March 31, 2011 rose by 25.3 per cent to RM165.3 million ($55.05 million) from RM131.9 million ($43.93 million) in the corresponding quarter of 2010.

Net profit increased by 25 per cent to RM122.2 million ($40.71 million) from RM97.8 million ($32.57 million) previously, it said in a statement Tuesday.

EON Capital, the holding company of EON Bank Group, said the better performance was due to the growth in net interest income, Islamic banking earnings and non-interest income.

It said the group focused on the retail sector, which accounted for approximately 80 per cent of its loan portfolio comprising mainly loans for financing residential properties, the purchase of transport vehicles and the small and medium enterprises.

On the sale of unit EON Bank Bhd to Hong Leong Bank Bhd, EON Capital said it has received the sale consideration of RM5.06 billion ($1.68 billion) on May 6.

It said it intended to distribute the entire sale consideration and the interim dividend, with any interest thereon and after deducting other obligations that may be incurred or approved by the company after May 6, back to all its entitled shareholders soon.

View the full story in Bernama.