- Hong Leong Finance (SGX:S41) has been a reputable finco for more than 60 years locally and is the market leader with ~75% of Singapore fincos’ loan market share totalling ~S$14bn.
- With Hong Leong Finance’s wide distribution network of branches located close to residential areas, we believe that Hong Leong Finance is well positioned to serve small and medium-sized enterprises (SMEs) as well as garner retail deposits.
Strong SME relationships and comprehensive suite of SME products and services.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Loan Insurance Scheme (LIS), and
- Internationalisation Finance Scheme (LFS),
- We believe this helps to differentiate Hong Leong Finance from the other fincos.
- Hong Leong Finance funds its loans almost entirely through customer deposits; ~97% of the customer deposits are fixed deposits, while the remaining are savings deposits and other balances of customers.
- As Hong Leong Finance’s deposits are mostly fixed deposits, it is more expensive than Current Account Savings Account (CASA) deposits and Hong Leong Finance is more sensitive to changes in fixed deposit rates as fixed deposits form most of its funding base.
Higher cost of funds in a rising rate environment.
- Read more at SGinvestors.io.
