Kuala Lumpur, 26 May 2026 - Hong Leong Financial Group Berhad (“HLFG” or the “Group”) today announced its results for the nine months ended 31 March 2026 (“9M FY26”).


  • Net profit attributable to shareholders (“PATAMI”) for 9M FY26 increased by 3.7% year-on-year (“y-o-y”) to RM2.49 billion, driven by improved performance across all businesses.

  • Commercial banking division, Hong Leong Bank Berhad’s (“HLB” or “the Bank”) achieved operating profit growth of 6.0% y-o-y. Inclusive of profit contribution from its associate, HLB’s profit before tax (“PBT”) recorded growth of 0.3% 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 5.2% y-o-y mainly driven by improved investment income from equities and higher contributions from associate MSIG Insurance (Malaysia) Bhd (“MSIG Malaysia”). This offset weaker net insurance service results caused by higher claims.

  • Investment banking and fund management division, Hong Leong Capital Berhad’s (“HLCB”) PBT was higher by 4.2% y-o-y, primarily attributable to stronger contributions from treasury & market (“T&M”) and higher mark-to-market gains in equity investments.

  • Annualised return on average equity (“ROE”) remains commendable at 10.1%.

  • Book value per share increased to RM29.6 as of 31 March 2026, compared to RM27.8 from a year ago.

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

“Hong Leong Financial Group’s sustained growth in revenue, together with rigorous cost management and robust asset quality, highlights the strength of our operations, delivering an improved performance for 9M FY26. The Group remains well positioned to pursue future opportunities while remaining vigilant of external headwinds stemming from geopolitical uncertainties.


Strategically, the Group continues to evolve our wealth management suite through innovation. This quarter, our commercial bank has rebranded its Islamic and Priority banking divisions to HLB Islamic and HLB Priority, marking a shift towards a more integrated, wealth-focused service model. Broadening this wealth ecosystem, our life insurance arm debuted 'Smart Legacy,' a legacy planning product for high-net-worth individuals featuring a RM2 million minimum sum assured. Additionally, our investment bank has rolled out new bond investment financing solutions tailored for sophisticated investors.”


Commercial Banking: PBT of RM4,015 million (+0.3% y-o-y)

  • HLB recorded an operating profit improvement of 6.0% y-o-y to RM3,099 million in 9M FY26, driven by top-line growth, strategic cost management and healthy asset quality. Inclusive of profit contribution from its associate, HLB’s PBT recorded growth of 0.3% 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.

  • Gross loans, advances and financing continued to record strong growth of 8.4% y-o-y to RM218.2 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 8.5% y-o-y continued ahead of industry growth rate of 5.4% y-o-y.

  • Net Interest Margin (“NIM”) was lower at 1.83% following the 25bps Overnight Policy Rate cut in July-25. Nevertheless, net interest income increased 3.5% y-o-y to RM3,793 million driven by higher loans/financing base.

  • Non-interest income improved by 2.2% y-o-y, supported by increase in wealth management activities and global markets franchise sales.

  • CASA expanded by 14.1% y-o-y to RM77.9 billion, which corresponded to a CASA ratio of 32.0%. This performance was attributed to HLB’s community acquisition initiatives and impactful cash management solutions.

  • The Bank continued to demonstrate operational excellence with positive JAWS, delivering a lean cost-to-income ratio (“CIR”) of 37.2% for 9M FY26.

  • Asset quality position of the Bank remained healthy with a GIL ratio of 0.60% whilst the LIC ratio stood at 81.1% as at 31 March 2026. Inclusive of the regulatory reserve, the coverage ratio is higher at 236.9%.

  • The Bank’s capital position remained robust with CET 1, Tier 1 and Total Capital ratios at 12.4%, 13.3% and 15.5% respectively as at 31 March 2026.

 


Insurance: PBT of RM515 million (+5.2% y-o-y)

  • HLAH’s PBT improved by 5.2% y-o-y to RM515 million, mainly driven by stronger net investment income from Hong Leong Assurance Berhad (“HLA”) as well as improved contributions from associate, MSIG Malaysia and our Singapore general insurance business. This was partially offset by life insurance’s lower net service results due to higher claims and reduced CSM recognition.

  • Net investment income improved by 24.3% y-o-y driven by increased interest/ dividend income and mark-to-market (“MTM”) gains on equities.

  • Total gross premiums/contributions remained steady for life insurance and family takaful at RM2.8 billion driven by stronger renewals, with HLA’s persistency ratio rising 220 bps to 81.0%. This offset lower new business premiums/contributions from a reduced workforce in agency and bancassurance channels due to attrition.

  • For overseas general insurance companies, PBT declined by 13.0% y-o-y to RM37.4 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 RM59 million (+4.2% y-o-y)

  • HLCB recorded a PBT growth of 4.2% y-o-y to RM59 million mainly due to higher T&M income and higher gains in equity investments. This offset lower earnings from stockbroking and fund management.

  • Investment banking division PBT improved by 63.6% y-o-y to RM14.2 million driven by T&M’s strong bond trading income and higher net interest income, which mitigated lower deal flows from Equity Markets and Debt Markets.

  • Stockbroking PBT declined by 22.5% y-o-y to RM25.1 million, primarily attributable to lower brokerage fee income following decline in Bursa’s retail volume and market activity remained predominantly influenced by foreign institutional participation, a segment where the division has limited participation.

  • Our fund management arm’s PBT declined by 35.0% y-o-y as a result of higher business operating expenses due to a combination of higher regulatory expenditure and spending for ongoing business expansion, such as systems to support our business partnerships. However, average Assets Under Management (“AUM”) improved by 28.9% y-o-y to RM14.9 billion due to stronger inflows of fixed income and money market funds.

 


Sustainability Journey

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

  • HLB has elevated its MSCI ESG Rating to AA from a previous rating of A, well above global industry average.

  • Hong Leong Investment Bank is on track to surpass its FY2026 green financing target, with its investments in green bonds standing at RM270 million as at 31 March 2026.

  • 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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