HLB records improved 9M25 net profit of RM3.2bil
Hong Leong Bank group managing director and chief executive officer Kevin Lam.
KUALA LUMPUR: Hong Leong Bank Bhd (HLB) maintained a growth trajectory in the nine months of financial year ended March 31, 2025 (9M25) with double-digit expansion in non-interest income, while the bank's gross loans and financing crossed a RM200bil milestone, says group managing director and chief executive officer 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 9M25, 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 the third quarter of financial year 2024 (3Q24).
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 and financing growth and effective funding cost management. As a result, net interest margin gained five basis points y-o-y to 1.9%.
Non-interest income in 9M25 jumped 34.1% y-o-y to RM1.12bil, attributed to the encouraging performance in the wealth management business and global markets franchise sales alongside the higher treasury and foreign exchange gain.
The 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, small and medium enterprises and commercial banking as well as key overseas markets.
Customer deposits in 9M25 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 HLB, we focus on the execution of the three to five-year transformative plan to deliver sustainable results to our stakeholders,' Lam said on the bank's outlook.
Meanwhile, HLB's parent company Hong Leong Financial Group Bhd (HLFG) announced a net profit of RM2.4bil in 9M25, slightly higher from RM2.39bil in the year-ago period, while revenue rose to RM5.45bil from RM5.04bil in the comparative period.
However, HLFG's third-quarter net profit was RM714.12mil, down from RM818.07mil in 3Q24, and revenue slipped to RM1.7bil from RM1.76bil in the previous corresponding quarter.
The group's insurance division, HLA Holdings Sdn Bhd recorded a 13.5% weaker pre-tax profit of RM489mil, while its investment banking and asset management division, Hong Leong Capital Bhd 's pre-tax profit was lower by 23.6% y-o-y to RM57mil.
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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