Kuala Lumpur, 27 August 2026 - Hong Leong Financial Group Berhad (“HLFG” or the “Group”) (BM: HLFG) today announced its results for the financial year ended of 30 June 2026 (“FY2026”).


  • Record-high net profit attributable to shareholders (“PATAMI”) for FY2026 increased by 5.5% y-o-y to RM3.43 billion, driven by improved performance across all businesses.

  • The Board has declared a final dividend of 57 sen per share, bringing the total dividend to 79 sen per share for FY2026, increasing by 10% from the previous year. The FY2026 total dividend payout amounts to RM906 million.

  • Commercial banking division, Hong Leong Bank Berhad’s (“HLB” or “the Bank”) achieved PBT growth of 2.2% 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 11.3% y-o-y from stronger net service results and net investment income.

  • Investment banking and fund management division, Hong Leong Capital Berhad’s (“HLCB”) PBT was higher by 8.8% y-o-y, primarily attributable to stronger contributions from treasury & market (“T&M”) and fund management, alongside higher mark-to-market (“MTM”) gains in equity investments.

  • Return on average equity (“ROE”) remains commendable at 10.3%.

  • Book value per share increased to RM30.60 as of 30 June 2026, compared to RM28.34 from a year ago.

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

“Hong Leong Financial Group has delivered our strongest financial performance to date, with FY2026 PATAMI growing 5.5% y-o-y to RM3.43 billion. This record-high milestone is a testament to our operating businesses’ inherent strength in navigating a challenging operating landscape, as showcased by stronger performance across all 3 business franchises. Over a 5-year horizon, this achievement brings the Group’s PATAMI Compound Annual Growth Rate (“CAGR”) to 8.7%, serving as a clear reflection of HLFG’s long-term value creation across changing economic cycles. As such, HLFG is pleased to raise our dividend by 10% y-o-y in FY2026 to 79 sen per share, marking our seventh consecutive annual increase.


HLFG has strategically expanded our wealth management proposition by introducing tailored solutions across the Group. Our commercial banking arm now provides Malaysian investors direct access to global private markets and funds for enhanced portfolio diversification. The Bank is also the first in Malaysia to offer Visa’s prestigious newly launched tier, Visa Infinite Privilege credit card, for high-net-worth clients. Adding to this ecosystem, our life insurance arm debuted Smart Legacy, a premier legacy planning product featuring a RM2 million minimum sum assured, while our fund management arm gained strong market traction with its newly launched Hong Leong Asia Value Bond fund, developed in partnership with Lombard Odier.


HLFG is also actively deploying Artificial Intelligence across the Group to work hand in hand with our workforce, equipping our people with productivity tools that enable them to focus more on high-value strategic priorities. Our commercial bank’s customer service capabilities are now bolstered by ‘Marina’, a 24/7 chatbot for routine inquiries and an internal AI powered product and policy database that empowers agents to resolve complex queries swiftly. Concurrently, our investment bank has deployed 'Mala,' a multi-agent AI platform that automates repetitive reporting tasks across support functions.


Looking ahead, HLFG will remain vigilant through proactive risk management in navigating the prevailing uncertainties from the ongoing geopolitical conflicts in the Middle East and evolving protectionist trade policies. The Group will continue fortifying our business franchises to adapt to an evolving operating landscape while actively pursuing new growth opportunities for sustainable expansion.”


Commercial Banking: PBT of RM5,480 million (+2.2% y-o-y)

  • HLB recorded an operating profit before allowances improvement of 6.6% y-o-y to RM4,179 million in FY2026, driven by top-line growth, strategic cost management and healthy asset quality. The moderation of PBT growth to 2.2% y-o-y was attributable to lower profit contribution from its associated company, Bank of Chengdu Co., Ltd (“BOCD”) following the completion of its convertible bonds conversion coupled with foreign exchange translation impact from a stronger ringgit.

  • Gross loans, advances and financing continued to record strong growth of 7.7% y-o-y to RM226.3 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 expanded 7.1%, outpacing industry growth rate of 5.5% y-o-y.

  • Net Interest Margin (“NIM”) was lower at 1.84% following the 25bps Overnight Policy Rate cut in July-25. Nevertheless, net interest income increased 3.2% y-o-y to RM5,085 million on the back of higher loans/financing base.

  • Non-interest income improved by 9.3% y-o-y, supported by increase in wealth management activities and global markets franchise sales.

  • CASA expanded by 11.3% y-o-y to RM87.4 billion, improving CASA ratio to 34.7%. This performance was attributed to HLB’s community acquisition initiatives and innovative cash management solutions.

  • The Bank continued to demonstrate operational excellence with positive JAWS, delivering a sustainable cost-to-income ratio (“CIR”) of 37.6% for FY2026.

  • Asset quality position of the Bank remained healthy with a gross impaired loan (“GIL”) ratio of 0.57% whilst the loan impairment coverage (“LIC”) ratio stood at 79.5% as at 30 June 2026. Inclusive of the regulatory reserve, the coverage ratio is higher at 244.1%.

  • The Bank’s capital position remains solid with CET 1, Tier 1 and Total Capital ratios at 12.9%, 13.8% and 16.2% respectively as at 30 June 2026.

 


Insurance: PBT of RM743 million (+11.3% y-o-y)

  • HLAH’s PBT improved by 11.3% y-o-y to RM743 million mainly due to higher net insurance service results primarily driven by improved underwriting margins and stronger net investment income.

  • Net investment income improved by 16.6% y-o-y from higher interest/dividend income and gains on equities.

  • Combined gross premiums/contributions remained steady for life insurance and family takaful at RM3.9 billion on the back of stronger renewals, with HLA’s persistency ratio rising 260 bps to 82.0%. This offset lower new business premiums/contributions that declined by 10.7% to RM1.2 billion from a reduced workforce in agency and bancassurance channels due to attrition.

  • Overseas general insurance companies recorded PBT of RM44.6 million on the back of stronger underwriting profit in HL Assurance Pte Ltd in Singapore. This was offset by lower investment income gains in Hong Leong Insurance (Asia) Limited in Hong Kong.

 


Investment Banking and Fund Management: PBT of RM85 million (+8.8% y-o-y)

  • HLCB recorded a PBT growth of 8.8% y-o-y to RM85 million mainly due to higher T&M and fund management contributions, alongside stronger MTM gains in equity investments. This offset lower earnings from stockbroking and investment banking divisions.

  • Investment banking division PBT declined 12.3% y-o-y to RM19.2 million attributable to delays in mandated deals in Equity Markets and Debt Markets. This was partially mitigated by T&M’s stronger trading income and higher net interest income.

  • Stockbroking PBT declined by 4.7% y-o-y to RM35 million from lower retail brokerage fee income, which is in tandem with contraction of Bursa Malaysia's retail traded value. Consequently, HLIB’s overall market share moderated to 3.24%.

  • Our fund management arm’s PBT improved by 31.1% y-o-y to RM13 million as a result of earned private mandates performance fees and higher management fees in line with AUM growth. Average Assets Under Management (“AUM”) improved by 28.0% y-o-y to RM15.1 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.

  • HLFG and key operating entities has reduced our Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions by 28% from the FY2019 baseline, well-ahead of the Group’s short-term decarbonisation target of 15% to 25% reduction.

  • HLB mobilised RM5.3 billion in sustainable financing in FY2026 under its Sustainable Finance Framework. This progress keeps HLB on-track to achieve its RM20 billion target by FY2029 under its Sustainable Finance Framework.

  • Our life insurer and Family Takaful businesses, HLA and HLMT have participated in the Government’s Perlindungan Tenang Voucher (“PTV”) 3.0 Programme, an initiative providing access to affordable microinsurance protection for lower-income individuals. HLA and HLMT has made their microinsurance product available online and via agent registration links, enabling underserved communities to easily customise coverage across accidental death, disability, and hospitalisation income.

  • On the investment banking and fund management front, HLIB has successfully facilitated nine ESG-related issuances valued at RM252 million in FY2026 and increased its green bond investments by 44% y-o-y to RM345 million as at 30 June 2026, concentrated in key impact sectors including sustainable transportation and renewable energy.

  • 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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