Kuala Lumpur, 27 February 2026 - Hong Leong Financial Group Berhad ("HLFG" or the "Group") today announced its results for the six months ended 31 December 2025 ("1H FY26").

• Net profit attributable to shareholders (“PATAMI”) for 1H FY26 increased by 3.2% year-on- year (“y-o-y”) to RM1.74 billion, driven by improved performance across all businesses.


• The Board has declared an interim dividend of 22.0 sen per share, increasing by 10.0% from the previous year.


• Commercial banking division, Hong Leong Bank Berhad’s (“HLB” or “the Bank”) achieved operating profit before associates growth of 5.6% y-o-y. Inclusive of profit contribution from its associate, HLB’s profit before tax (“PBT”) growth moderated to 0.6% 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 improved 10.7% y-o-y mainly driven by improved investment income from domestic equities and higher contributions from associate MSIG Insurance (Malaysia) Bhd (“MSIG Malaysia”). This offset weaker net insurance service results caused by higher claims and lower contractual service margin (“CSM”) recognition.


• Investment banking and fund management division, Hong Leong Capital Berhad’s (“HLCB”) PBT was higher by 9.1% 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 10.7%.


• Book value per share increased to RM29.16 as of 31 December 2025, compared to RM27.3 from a year ago.

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

“Hong Leong Financial Group’s improved 1H FY2026 performance is a testament of the strong fundamentals and growing momentum in all segments of our business. Strong topline growth, stringent cost controls and solid asset quality contributed to improved profitability.


Our Group continues to make meaningful strides in expanding our product suite through strategic partnerships. During the quarter, our commercial bank has entered a strategic partnership with So Ban Hang, Vietnam’s leading business management app. This partnership will provide Vietnamese entrepreneurs and MSMEs with the convenience of banking services and tax compliance features within the So Ban Hang app. Our fund management arm has also rolled out a new bond fund, in partnership with Lombard Odier, called Hong Leong Asia Value Bond. Our collaboration with Lombard Odier and Amundi Singapore has attained a combined RM922 million worth of Assets Under Management (“AUM”) from all the recently launched foreign-denominated funds.


We have also deployed purposeful digital innovations to create a more intuitive and customer-centric experience that meets our customers’ needs. Our Bank has launched the Apple Pay services for contactless payment and roll-out of our new business banking platform, ConnectPro. The stockbroking arm has also unified its local and foreign trading applications, which will provide our clients with frictionless investing access into 10 foreign markets from one account.”

Dividend

• The Board has declared an interim dividend of 22.0 sen per share for 1H FY26, which is 10% higher from the previous year’s interim dividend of 20.0 sen per share.

Commercial Banking – PBT of RM2,758 million (+0.6% y-o-y)

• HLB recorded a PBT improvement of 0.6% y-o-y to RM2,758 million in 1H 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 continued to record strong growth of 8.2% y-o-y to RM215.7 billion, underpinned 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 8.3% y-o-y has consistently outperformed the industry growth rate of 4.9% y-o-y.


• Net interest margin (“NIM”) was prudently managed at 1.83% following the 25bps Overnight Policy Rate cut in July-25. Nevertheless, net interest income increased 2.6% y-o-y to RM2,538 million, as the higher loans/financing base offsets the impact of NIM compression.


• Non-interest income also contributed to the growth, expanding 7.5% y-o-y, supported by solid performance in wealth management business and global markets franchise sales.


• CASA notably improved by 12.1% y-o-y to RM79.6 billion, which corresponded to a CASA ratio of 32.9%. This performance was supported by HLB’s community acquisition initiatives and the delivery of effective cash management solutions.


• The Bank delivered an improved CIR of 35.9%, 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 0.59% whilst LIC ratio stood at 83.7% as at 31 December 2025. Inclusive of the regulatory reserve, the coverage ratio is higher at 239.8%.

• Capital position of the Bank is healthy with CET 1, Tier 1 and Total Capital ratios at 12.6%, 13.5% and 15.6% respectively as at 31 December 2025.

Insurance – PBT of RM436 million (10.7% y-o-y)

• HLAH’s PBT improved by 10.7% y-o-y to RM436 million, driven by stronger net investment income as well as improved contributions from associate, MSIG Malaysia and our Singapore general insurance business. This was partially offset from lower net service results from higher claims in medical, death and dread diseases as well as lower CSM recognition.


• Net investment income improved by 27.5% y-o-y driven by higher equity gains and interest income mitigated by lower mark-to-market (“MTM”) gains on bond performance.


• Life insurance and family takaful’s total gross premiums/contributions grew by 1.5% 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 210 bps to 81.6%.


• For overseas general insurance companies, PBT declined by 14.2% y-o-y to RM25.1 million, mainly attributable to lower investment income gains in Hong Leong Insurance (Asia) Limited in Hong Kong. This was partially mitigated by stronger underwriting profit in HL Assurance Pte Ltd in Singapore.

Investment Banking and Fund Management – PBT of RM45 million (+9.1% y-o-y)

• HLCB recorded a PBT growth of 9.1% y-o-y to RM45 million driven by improved income from Investment Banking and Fund Management, as well as higher gains in equity investments. This offset lower earnings from stockbroking.


• Investment banking division PBT more than tripled, driven by Treasury and Market’s successful capitalisation on bond market fluctuations and optimising funding cost to drive higher net interest income and trading income.


• Stockbroking PBT reduced by 40.9% y-o-y attributable to lower Bursa retail and local institutional trading volume, which declined by 23.1% y-o-y and 9.5% y-o-y, respectively. Our market share (excluding foreign participation) moderated to 5.62%, compared to 5.97% in the corresponding period last year.


• Our fund management arm’s average Assets Under Management (“AUM”) improved by 28% y-o-y to RM14.5 billion due to stronger inflows of fixed income funds. This in turn has driven Fund Management’s PBT to increase by 9.1% y-o-y underpinned by higher management fees earned, in line with AUM growth.

Sustainability Journey

• The Group continues to make strides in our Environmental, Social, and Governance (“ESG”) journey under a Group-Wide approach.


• HLB has mobilised RM7.4 billion of loan supporting green projects since the inception of the sustainable finance framework and has surpassed its RM7.1 billion FY26 target ahead of schedule.


• HLISB has also launched HLB@CAMPUS, offering student-focused banking solutions alongside financial literacy workshops and a student ambassador program to prepare the next generation for responsible wealth creation.


• HLCB has elevated its FTSE Russell ESG Rating to 4.3 for the 2025 financial year from a previous score of 2.9. and also earned a 4-star rating, the highest tier achievable in the FTSE Russell ESG Score.


• 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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