Kuala Lumpur, 27 November 2025 - Hong Leong Financial Group Berhad (“HLFG” or the “Group”) today announced its results for the financial period ended 30 September 2025 (“1Q FY26”).


  • Recorded net profit attributable to shareholders (“PATAMI”) for 1Q FY26 of RM841.3 million supported by core operating profit growth of 5.3% y-o-y and was moderated by lower profit contributions from associated companies.

  • Commercial banking division, Hong Leong Bank Berhad’s (“HLB” or “the Bank”) achieved a higher operating profit before associates contribution of 7.8% y-o-y. Inclusive of profit contribution from its associate, HLB’s profit before tax (“PBT”) growth moderated to 0.9% y-o-y as a result of natural dilution of the bank’s stake in its associated company, Bank of Chengdu Co., Ltd (“BOCD”) following the completion of its convertible bonds conversion and FX translation impact from a stronger ringgit.

  • Insurance division, HLA Holdings Sdn Bhd’s (“HLAH”) PBT declined 8.5% y-o-y mainly attributable to lower net insurance service results from higher claims and lower contractual service margin (“CSM”) recognition. This was partially offset by improved contributions from associate, MSIG Malaysia and our Singapore general insurance business.

  • Investment banking and fund management division, Hong Leong Capital Berhad’s (“HLCB”) PBT was higher by 13.0% y-o-y, primarily attributable to stronger contributions from investment banking division and higher mark-to-market equity investments gains.

  • Annualised return on average equity (“ROE”) remains commendable at 10.4%.

  • Book value per share increased to RM28.54 as of 30 September 2025, compared to RM26.28 from a year ago.

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

“Hong Leong Financial Group’s sustained PBT at RM1.59 billion in 1Q FY26 on the back of the Group’s core business delivering solid pre-associate operating profit growth of 5.3% y-o-y. This was driven by 2.6% y-o-y topline growth, led by above-industry loan growth and higher non-interest income (“NoII”). The Group’s share of associates results, however, declined by 15.5% mainly attributable to lower profit contribution from BoCD following the Bank’s natural dilution of its stake and FX translation impact from a stronger ringgit.


Looking ahead, HLFG is elevating our brand presence and distribution strength through strategic expansion. This includes the rollout of next-generation branches alongside new Meet@HLB community branches now operating in Eco Majestic, Semenyih, and Kulim Hi-Tech Park, Kedah. In tandem, HLFG is expanding our product suite to provide customers with foreign denominated investments by partnering with Amundi, a leading global asset manager to launch Hong Leong Global Equity Fund. This fund is accessible as both a life insurance investment-linked product and also as a wealth management product.


Concurrently, HLFG is actively deploying Artificial intelligence (“AI”) and automation across the organisation, a strategic imperative directly aligned with our digital transformation ethos of "Digital at the Core”. The accelerated adoption of AI will enhance the Group’s operational agility and elevate overall productivity, enabling us to drive growth and ensure superior customer experience.”

 


Commercial Banking – PBT of RM1,351 million (+0.9% y-o-y)

  • HLB recorded an improved PBT of 0.9% y-o-y to RM1,351 million in 1Q FY26, driven by steady growth momentum in loans/financing, improved non-interest income contribution, solid asset quality and disciplined cost management.

  • Gross loans, advances and financing maintained its steady growth trajectory, with 9.1% y-o-y growth to RM211.8 billion, led by expansion in our key segments of mortgage, auto loans, SME and commercial banking, as well as key overseas markets. Domestic loans/financing growth of 9.0% y-o-y continues to outperform the industry growth rate of 5.5% y-o-y.

  • Net interest margin (“NIM”) for Q1FY26 was 1.84%, lower by 8bps y-o-y primarily due to timing difference in repricing for loans and deposits following the 25bps Overnight Policy Rate cut. Nevertheless, net interest income increased 2.4% y-o-y to RM1,274 million, as the higher loans/financing base offsets the impact of NIM compression.

  • Non-interest income increased 16.3% y-o-y to RM411 million, that improved the Bank’s non-interest income ratio to 24.4%. The drivers for the growth were improved wealth management business, increased global markets franchise sales and favourable treasury gains.

  • CASA notably improved by 9.1% y-o-y to RM76.8 billion, which corresponded to a CASA ratio of 32.5%. This performance was supported by a dedicated community deposit acquisition strategy and delivery of differentiated cash management solutions for our customers.

  • The Bank delivered an improved CIR of 36.0%, attributable to strategic cost management initiatives, enhanced automation and successful adoption of AI.

  • Asset quality position of the Bank remained healthy with a GIL ratio of 0.57% whilst LIC ratio stood at 89.6% as at 30 September 2025. Inclusive of the value of securities held on our GIL, the Bank’s LIC ratio is well-positioned at 159.6%, whilst with regulatory reserve, the coverage ratio is kept at 243.1%.

  • Capital position of the Bank is healthy with CET 1, Tier 1 and Total Capital ratios at 12.7%, 13.6% and 15.7% respectively as at 30 September 2025.

 


Insurance – PBT of RM217 million (-8.5% y-o-y)

  • HLAH’s PBT declined by 8.5% y-o-y to RM217 million, attributable to lower net service results from higher claims in medical, death and dread diseases as well as lower CSM recognition. This was partially offset by improved contributions from associate, MSIG Malaysia and our Singapore general insurance business

  • Net investment income was flat as life insurance’s higher equity gains and interest income was offset by lower mark-to-market (“MTM”) gains on bond performance.

  • Life insurance and family takaful’s total gross premiums/contributions grew by 2.4% y-o-y, led by higher family takaful new business in single premium MRTT policies and stronger renewals that saw HLA persistency ratio improving by 10 bps to 81.5%.

  • For overseas general insurance companies, HL Assurance Pte Ltd in Singapore recorded PBT growth of 12.4% y-o-y to RM12.2 million from stronger underwriting profit, while Hong Leong Insurance (Asia) Limited in Hong Kong recorded lower PBT contributions to RM2.9 million attributable to lower investments income.

 


Investment Banking and Fund Management – PBT of RM25 million (+13.0% y-o-y)

  • HLCB recorded a PBT growth of 13.0% y-o-y to RM25 million driven by improved income from Investment Banking, as well as higher gains in equity investments. This offset lower earnings from stockbroking.

  • Stockbroking PBT reduced by 42.9% y-o-y as HLIB’s local institutional and retail net brokerage declined by 35.1% y-o-y amid lower Bursa Malaysia’s lower traded value for both segments of 30.0% y-o-y. Our market share (excluding foreign participation) declined to 5.80% from 6.32% in the corresponding period last year.

  • Investment banking division PBT more than doubled, mainly driven by Treasury and Market realising trading gain resulting from the bond market fluctuations and a higher net interest income from lower cost of funds.

  • Our fund management arm’s average Assets Under Management (“AUM”) improved by 36.6% y-o-y to RM13.8 billion due to stronger inflows of fixed income funds. HLISAM’s average AUM also recorded steady growth, expanding to RM2.1 billion from RM1.8 billion in the prior year, likewise, attributed to growth in its Fixed Income Funds.

 


Islamic Banking Excellence & Sustainability Journey

  • Hong Leong Islamic Bank (“HLISB”) has launched the HLB Meezani Account-i, a new Shariah-compliant investment account focused on ethical wealth growth and customer rewards in conjunction with its 20th anniversary. Beyond this launch, HLISB’s market leadership has been cemented by receiving the Best Islamic Bank for SME Banking award for the second time, supported by its 22% SME allocation of FY2025 total financing.

  • The Group continues to make strides in our Environmental, Social, and Governance (“ESG”) journey under a Group-Wide approach. The Group and all our key operating companies are on track to meet the short-term goal of reducing Greenhouse Gas (GHG) emissions by 15%-25% (from the FY2019 baseline) by FY2026. 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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