Hong Leong Bank records improved 9M net profit of RM3.18bil
Hong Leong Bank group managing director and CEO Kevin Lam
KUALA LUMPUR: Hong Leong Bank Bhd maintained a growth trajectory in the nine months ended March 31, 2025 (9MFY25) with double-digit expansion in non-interest income, while the bank's gross loans and financing crossed a RM200bil milestone, said group managing director and CEO Kevin Lam.
"We are pleased to announce that our business performance thus far has been commendable underpinned by solid loans/financing growth, strong non-interest income contribution and healthy asset quality."
In 9MFY25, Hong Leong posted a net profit of RM3.18bil, up from RM3.16bil in the year-ago period.
The bank reported revenue of RM4.78bil, an increase from RM4.29bil in the comparative period, while earnings per share rose to 155.36 sen from 154.3 sen previously.
The higher cumulative performance was in spite of the weaker third-quarter performance, which logged a net profit of RM946.7mil against RM1.04bil in 3QFY24.
Revenue during this quarter was higher at RM1.55bil, against RM1.44bil in the year-ago quarter.
During the nine-months period, the bank's net interest income rose to 5.8% year-on-year (y-o-y) to RM3.66bil, underpinned by strong loans/financing growth and effective funding cost management. As a result, net interest margin gained 5 basis points y-o-y to 1.9%.
Non-interest income in 9MFY25 jumped 34.1% y-o-y to RM1.12bil, attributed to the encouraging performance in the wealth management business and GM franchise sales alongside the higher treasury and foreign exchange gain.
Hong Leong Bank's gross loans, advance and financing grew 7.2% y-o-y to RM201.2bil, on the back of expansion in the key segments of mortgage, auto loans, SME and commercial banking as
well as key overseas markets.
Customer deposits in 9MFY25 rose 5.9% y-o-y to RM225bil with current account savings account (Casa) expanding
5% y-o-y to RM68.3bil. The bank's Casa ratio stood at 30.4%.
"'We are confident that the Malaysian economy will remain resilient amidst the ongoing external headwinds, whilst at Hong Leong Bank, we focus on the execution of the 3-5 Year Transformative Plan to deliver sustainable results to our stakeholders," said Lam on the bank's outlook.
Meanwhile, Hong Leong Bank's parent company Hong Leong Financial Group Bhd (HLFG) announced a net profit of RM2.4bil in 9MFY25, slightly higher from RM2.39bil in the year-ago period, while revenue rose to RM5.45bil from RM5.04bil in the comparative period.
The group's third-quarter net profit was RM714.12mil, down from RM818.07mil in 3QFY24, and revenue slipped to RM1.7bil from RM1.76bil in the previous corresponding quarter.
It said in a statement the insurance division, HLA Holdings Sdn Bhd recorded a 13.5% weaker pre-tax profit of RM489mil due to reduced investment income and mark-to-market gains as well as lower share of profits from associate, partially mitigated by higher net insurance service results.
The investment banking and asset management division, Hong Leong Capital Bhd's pre-tax profit was lower by 23.6% y-o-y to RM57mil, primarily attributable to lower mark-to-market gains on equity investments.
HLFG president and CEO Tan Kong Khoon said the group demonstrated resilience in the first nine months of FY25 despite a challenging operating environment.
However, he added that global economic uncertainties stemming from trade disruptions and geopolitical tensions had a negative impact on investment income within the insurance and investment banking divisions.
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