According to a new report by RHB Research Institute, Hong Leong Bank's net profit might have risen by about 32 per cent to RM986 million during the six month period till December of 2012 compared to the same period of the previous year.

The research agency said that the increase in net profit is about 4 to 4.5 per cent above analyst expectations for the net profit and for the forecast for the entire current financial year. The report said that the pre-impairment operating profit of the company was 4 per cent below its estimates on an annual basis but this was offset by a net writeback in loan impairment allowance as well as a higher than expected associate contribution.

"Annualised loan growth was just 5.3% as growth was adversely impacted by the drop in trade financing and paydown in project loans. Customer deposits rose 1.2% annualised while the loan-deposit and current and savings accounts ratios were 73.5% and 24.7% respectively," it said.

RHB Research said that the gross impaired loan ratio rose 12 basis points to 1.49 per cent and the company announced an interim gross dividend per share of 15 sen.