Kuala Lumpur, 27 August 2025 - Hong Leong Financial Group Berhad (“HLFG” or the “Group”) today announced its results for the financial year period 30 June 2025 (“FY2025”).


  • Record-high net profit attributable to shareholders (“PATAMI”) for FY2025 increased to RM3.25 billion, driven by improved performance of commercial banking and insurance, which offset lower investment banking and fund management contribution.

  • The Board has declared a final dividend of 52 sen share, bringing the total dividend to 72 sen per share for FY2025, increasing by 33.3% from the previous year. The FY2025 total dividend payout amounts to RM827 million.

  • Commercial banking division, Hong Leong Bank Berhad’s (“HLB” or “the Bank”) profit before tax (“PBT”) increased by 4.4% y-o-y, underpinned by strong growth momentum in loans/financing, improving non-interest income contribution and solid asset quality.

  • Insurance division, HLA Holdings Sdn Bhd’s (“HLAH”) PBT improved by 10.1% y-o-y from improved net service results from life insurance and family takaful and higher income from overseas general insurance. This partially offset the reduced domestic investment income and mark-to-market gains, as well as lower share of profits from associate. Investment banking and fund management division, Hong Leong Capital Berhad’s (“HLCB”) PBT was lower by 35.6% y-o-y, primarily attributable to lower mark-to-market gains on equity investments as well as a decline in income of stockbroking and fund management.

  • FY2025 Return on average equity (“ROE”) remains commendable at 10.5%.

  • Book value per share increased to RM28.34 as of 30 June 2025, compared to RM26.53 from a year ago.

Hong Leong Financial Group’s President & Chief Executive Officer, Tan Kong Khoon, commented,

“Hong Leong Financial Group has delivered yet another record-high financial performance with a FY2025 PATAMI of RM3.25 billion, demonstrating resilience of our businesses. Our performance was driven by 8.5% y-o-y topline growth, led by above-industry loan growth, net interest margin expansion, and robust 18.1% y-o-y growth in non-interest income (“NoII”). As such, the Group is pleased to announce our sixth consecutive annual dividend increase with a 33.3% y-o-y uplift in FY2025 to 72 sen from 54 sen last year, which is a testament to HLFG’s sustained financial performance and commitment in rewarding our shareholders.


Looking ahead, HLFG is committed to unlocking further synergies across the Group’s integrated financial ecosystem, enabling us to not only acquire new customers but also enhance customer value through targeted cross-selling and up-selling. The Group aims to achieve this by leveraging our sales distribution strength and competitive product suite. Underscoring this strategic focus is our fund management arm’s recent roll-out of Hong Leong All Roads Funds which involves a strategic alliance between Hong Leong Bank, Hong Leong Asset Management and Lombard Odier, an over 225 years international private banking group. These funds will be exclusively distributed by Hong Leong Bank.


The Group has also amplified our synergies through physical presence following the unveiling of HLB’s next-generation branches serving as a one-stop hub for HLFG’s offerings. This truly hybrid banking model is where physical presence amplifies digital capabilities and serves as centres for complex financial advisory, in-person portfolio management and relationship building.”

 


Commercial Banking – PBT of RM5,360 million (+4.4% y-o-y)

  • HLB recorded an improved PBT of 4.4% y-o-y to RM5,360 million in FY2025, driven by strong growth momentum in loans/financing, improving non-interest income contribution and solid asset quality.

  • Gross loans, advances, and financing maintained its growth momentum, with an increase of 7.8% y-o-y to RM210.1 billion, driven by expansion in our key segments of mortgage, auto loans, SME, and commercial banking as well as key overseas markets. Domestic loans/financing expanded 8.0% y-o-y, outperformed the industry growth rate of 5.2% y-o-y.

  • Net interest income increased by 5.5% y-o-y to RM4,927 million, led by strong loans/financing growth and lower cost of funds. Correspondingly, net interest margin (“NIM”) improved 4 bps y-o-y to 1.90%.

  • Non-interest income also surged by 33.5% y-o-y to RM1,471 million, driven by robust performance in wealth management and global markets franchise sales, complemented by favourable treasury and foreign exchange gains.

  • CASA recorded robust growth of 9.6% y-o-y to RM78.5 billion. The Bank’s CASA ratio stood at 32.9% supported by the Bank’s strategic focus on community deposit acquisition and customer-centric cash management solutions.

  • The Bank delivered positive JAWS with an improved CIR of 38.7%, due to strategic cost management initiatives and benefits from AI realisation.

  • Asset quality position of the Bank remained healthy with a GIL ratio of 0.54% whilst LIC ratio stood at 96.9% as at 30 June 2025. Inclusive of regulatory reserve, the coverage ratio would be higher at 257.9%.

  • Capital position of the Bank remained healthy with CET 1, Tier 1 and Total Capital ratios at 13.2%, 14.2% and 16.3% respectively as at 30 June 2025.

 


Insurance – PBT of RM667 million (10.1% y-o-y)

  • HLAH’s PBT expanded by 10.1% y-o-y to RM667 million, driven by improved net service results from life insurance and family takaful as well as higher income from overseas general insurance. This was partially offset by a decline in net investment income and a lower share of profits from associate.

  • Net insurance service results of life insurance and family takaful improved by 57.5% y-o-y, driven by higher release of contractual service margin and higher expected insurance claims outpacing actual claims.

  • Life insurance and family takaful’s total gross premiums/contributions grew by 4.2% y-o-y, led by new business growth of 17.6%. The improved new business was mainly driven by a higher bancassurance channel’s contribution of 36.4% y-o-y.

  • Net investment income declined by 11.4% y-o-y as a result of a weaker domestic equities market in comparison to a stronger market in the previous year. In addition, the reserving required has caused Insurance Finance Income and Expense (“IFIE”) to increase by 54.5% y-o-y due to interest rates trending downwards during the financial year.

  • Our overseas general insurance companies, namely HL Assurance Pte Ltd in Singapore and Hong Leong Insurance (Asia) Limited in Hong Kong, recorded stronger PBT contributions of RM64.8 million, nearly a two-fold increase from last year. The improved performance was led by higher mark-to-market gains recorded in equities investments in Hong Kong and Singapore. In terms of gross premiums, our Singapore business increased by 6.7% y-o-y, while Hong Kong grew by 8.1% y-o-y.

 


Investment Banking and Fund Management – PBT of RM78 million (-35.6% y-o-y)

  • HLCB recorded PBT of RM78 million, a 35.6% decline y-o-y, which was primarily attributable to lower mark-to-market gains on equity investments as well as lower contribution from stockbroking and fund management.

  • Stockbroking PBT reduced by 27.9% y-o-y due to a decline in net brokerage income attributable to lower traded volumes and a 62bps decline in market share to 3.46%. This is reflective of Bursa’s lower retail segment traded value of -19.5% y-o-y and influenced by increased foreign institutional flows, of which HLIB has limited participation.

  • Investment banking division delivered improved PBT of 5.7% y-o-y, driven by improved Debt Market income from the completion of mandated deals. Treasury & Markets (“T&M”) also positively contributed to the improved performance with a higher net interest income. This mitigated lower Equity Capital Market contributions in light of the muted domestic equity markets.

  • Our fund management arm’s PBT declined by 48.5% to RM10.4 million, primarily due to the absence of RM15 million equity related performance fees earned in the previous year that was not achieved in the current financial year following a softer domestic market performance. Average Assets Under Management (“AUM”) improved by 9% y-o-y to RM11.8 billion, primarily driven by Islamic funds AUM growth of 42% y-o-y.

 


Sustainability Journey

  • The Group continues to make strides in our Environmental, Social, and Governance (“ESG”) journey under a Group-Wide approach. All of the Group’s key operating companies are now signatories of PCAF, underscoring the Group’s commitment in supporting Malaysia’s net-zero ambitions.

  • Our commercial bank has distributed RM4.2 billion of green financing as part of the HLB’s commitment to disburse an additional RM20 billion over the next five years to support Green Projects. This comprises green projects financing related to renewable energy, energy efficiency, green building, affordable housing, clean transportation and logistics, and waste management.

  • Our life insurer, HLA has taken part in Life Insurance Association of Malaysia’s (LIAM) i-MULA 50 initiative, which will provide a subsidy of RM50 for each qualifying life insurance policy for first-time insurance buyers looking to purchase life insurance protection. This initiative is designed to make life insurance more accessible and affordable for first-time customers.

  • On the investment banking and fund management front, HLCB has recently completed seven ESG/sustainability-related issuances amounting to RM1.1 billion in FY2025. HLFG remains committed to integrating ESG considerations and strengthening its sustainability efforts across all operating companies to deliver long-term value for all stakeholders.


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