HLISB's merger with EONCAP Islamic Bank Berhad (EIBB) in November 2011, while historic for being the first Islamic bank merger in Malaysia, has ultimately transformed the bank into a larger and bigger bank in terms of assets, financing and deposits.

Assets and financing

HLISB's total assets grew by 72% from RM12.2 billion as at 30 June 2011 to RM20.9 billion as at 31 December 2011. The net financing base is now more than twice enlarged from RM5.4 billion as at 30 June 2011 to RM11.7 billion as at 31 December 2011. This was driven equally by consumer financing as well as business financing.

Consumer financing recorded a growth of RM5.1 billion to a total of RM9.8 billion (or +109% post-merger); while business financing improved by RM1.4 billion to RM2.2 billion (or +179% post-merger).

Business banking's contribution to the overall financing business has also improved from 14% as at 30 June 2011 to 19% in 31 December 2011.

Deposits

HLISB's deposits franchise strengthened from RM9.2 billion as at 30 June 2011 to RM16.8 billion as at 31 December 2011. The ratio of Current and Savings Accounts (CASA) deposits to total deposits has further improved from 22% to 25% post-merger.

Net profits

The bank recorded a profit after tax of RM40.7 million as at 31 December 2011, higher than the corresponding period last year of RM33.9 million as a standalone bank - a reflection of the incremental income contribution from the former EIBB's business which was consolidated with HLISB's effective 1 November 2011.

Credit quality

The merged Bank maintained its asset quality levels with gross impaired financing ratio at 2.0% as at December 2011, against the industry average of 2.6%.

Business outlook

Moving forward, HLISB will continue to build on its business and financial strengths to further grow its corporate and investment banking, and non-financing income segments to ensure sustainable long-term value creation.