ECM Libra has maintained its "hold" call for Hong Leong Bank Bhd and increased the target price to RM10.12 per share from RM9.43.

In a research note today, ECM Libra said the bank was above industry loans growth as its loan portfolio had grown very aggressively over the past four quarters.

"Annualised year to date gross loans growth stood at 17 per cent with almost 70 per cent of credit expansion year to date, going to residential property loans which made up 41 per cent of the loan portfolio," it said.

It also said, for the first half financial year 2011, Hong Leong Bank's net profit was 19.6 per cent higher year-on-year on the back of strong gross loan growth of 15.5 per cent year-on-year.

Its non-interest income also increased by 17.6 per cent and higher associate contribution from the Bank of Chengdu rose by 41.2 per cent.

Meanwhile, OSK Research Sdn Bhd has maintained a "trading buy" call for Hong Leong Bank, with a target price of RM9.86 per share.

It said loan growth momentum remained promising as it increased by 4.1 per cent quarter-on-quarter, similar to the first quarter financial year 2011's quarterly growth.

The bank's first half financial year 2011 annualised growth of 16.5 per cent was also the fastest recorded by the bank over the past five years.

"The bulk of growth was from residential properties, working capital, and non-residential properties while higher purchase loans were up by a subdued 3.2 per cent year-on-year," OSK said. -- Bernama