Latest news with #HLFG
The Star
6 days ago
- Business
- The Star
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.
Free Malaysia Today
27-05-2025
- Business
- Free Malaysia Today
Hong Leong likely to drop out of FBM KLCI index
The Hong Leong Financial Group has failed to meet the requirements to enable it to stay on the FTSE Bursa Malaysia index. (Facebook pic) KUALA LUMPUR : Hong Leong Financial Group Bhd (HLFG) is likely to be replaced by AMMB Holdings Bhd (AmBank) on the FTSE Bursa Malaysia (FBM KLCI) index when the semi-annual review comes up next week. CIMB Securities Sdn Bhd expects HLFG to fail the liquidity screening requirement, which mandates a monthly median trading velocity of at least 0.04% in eight of the past 12 months. The group has met the requirement for only seven months. The review, to be based on share prices at the close of trading yesterday, is scheduled for June 4, a day before the official release of the final review. Any change in the index constituents will take effect on June 23, according to a note issued by CIMB Securities this morning. The FBM KLCI tracks the performance of the 30 largest companies by market capitalisation that are listed on the main board of Bursa Malaysia. To remain on the index, existing constituents must satisfy three criteria, which are to meet market capitalisation ranking requirements, maintain a free float of 15% and pass the liquidity screening test. The liquidity screening test assesses the median daily trading volume as a percentage of shares in issue over a 12-month review period. A stock must maintain a monthly median daily trading volume of at least 0.04% of its shares in issue, after applying any investability weightings, in at least eight out of the past 12 months. If an existing FBM KLCI constituent drops out of the index, it will be replaced by the highest-ranking non-constituent company based on market capitalisation. 'As of May 26, AmBank holds this position. Our checks also confirm that AmBank meets the other two inclusion criteria: it has a minimum free float of at least 15% and has satisfied the liquidity requirement, with a monthly median trading velocity of at least 0.05% in the past 12 months (June 2024–May 2025),' CIMB Securities added.
The Star
27-05-2025
- Business
- The Star
AmBank may replace Hong Leong Financial Group in upcoming KLCI index review
KUALA LUMPUR: CIMB Securities Sdn Bhd anticipates that AMMB Holdings Bhd (AmBank) may replace Hong Leong Financial Group Bhd (HLFG) in the FTSE Bursa Malaysia KLCI (FBM KLCI) Index, following an upcoming KLCI semi-annual review. In a note, CIMB Securities said the review is based on share prices at the close of trading on May 26, 2025. FTSE and Bursa Malaysia will announce the preliminary results of the KLCI review on June 4 2025, a day ahead of the official release of the final review on June 5. Any changes to the index constituents will take effect on June 23, 2025, the note said. CIMB Securities said HLFG is likely to fail the liquidity screening requirement, which mandates a monthly median trading velocity of at least 0.04 per cent in eight out of the past 12 months. HLFG is one month short of the required eight months. "To remain in the KLCI during the semi-annual review, existing constituents must satisfy all three criteria. "First, in the market capitalisation ranking. Secondly, a minimum free float of 15 per cent and third, the liquidity screening,' the note said. The liquidity screen assesses the median daily trading volume as a percentage of shares in issue over a 12-month review period. A stock must maintain a monthly median daily trading volume of at least 0.04 per cent of its shares in issue, after applying any investability weightings, in at least eight out of the past 12 months. HLFG's weighting in the KLCI stood at 0.7 per cent as at Dec 31, 2024. CIMB Security said if an existing FBM KLCI constituent is removed from the index, it will be replaced by the highest-ranking non-constituent company based on market capitalisation. "As of May 26, AmBank holds this position. Our checks also confirm that AmBank meets the other two inclusion criteria: it has a minimum free float of at least 15 per cent and has satisfied the liquidity requirement, with a monthly median trading velocity of at least 0.05 per cent in the past 12 months (Jun 2024-May 2025),' it added. - Bernama
Business Times
26-05-2025
- Business
- Business Times
Hong Leong Bank forms private banking alliance with Lombard Odier
[SINGAPORE] Bursa-listed Hong Leong Bank (HLB) – a subsidiary of Malaysian tycoon Quek Leng Chan's Hong Leong Financial Group (HLFG) – on Monday (May 26) announced it has formed a strategic alliance with Swiss private bank Lombard Odier. Quek is chairman of both HLFG and HLB, which are part of Malaysia's Hong Leong Group that he founded together with Kwek Hong Png – the father of City Developments chairman Kwek Leng Beng. Quek and Kwek Leng Beng are cousins. The Quek/Kwek family is one of the richest clans in Singapore and Malaysia. Geneva-headquartered Lombard Odier is a global wealth and asset manager with a nearly 230-year history. Jeffery Yap, managing director and head of regional wealth management at HLB, marks this as a 'pivotal moment' in private banking, particularly in significant markets such as Malaysia and Singapore. With the partnership welding Lombard Odier's global perspectives with HLB's knowledge of Asian markets, HLB also announces its enhanced HLB Private Bank services in the region. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up This allows the bank to provide a 'sophisticated and deeply personalised client experience'. Clients will also be offered bespoke advisory services such as 'Red Carpet Advisory' and 'Discretionary Portfolio Management'. Kevin Lam, group managing director and CEO of HLB, said: 'Singapore, a pivotal wealth hub in a continent experiencing unprecedented growth in affluence, presents a unique opportunity.' Lam added that the alliance provides HLB with the opportunity to elevate its private bank offering in the region. 'Together, we are charting a course for enduring wealth, providing our discerning clients in Singapore and the region with access to world-class expertise,' Lam said. Besides Singapore and Malaysia, HLB also has operations in Hong Kong, Vietnam and Cambodia. The alliance comes with the wealth expansion seen in Asia-Pacific markets, and is one of the many that Lombard Odier has been establishing throughout Asia recently. The private Swiss bank's ecosystem of strategic alliances includes those with financial institutions in Australia, Japan, Taiwan, Thailand and the Philippines. With a significant influx of high net worth individuals (HNWI) and doubling private assets in the region, demand is evolving in the rapidly growing market. Hubert Keller, senior managing partner for Lombard Odier, said: 'We are increasingly seeing significant growth opportunities in the Asia domestic markets: a clear upward trajectory in the demand and appetite for tailored wealth management, and a need for banks to meet client demands in accessing global investment opportunities onshore.' Lombard Odier also sees that a defining feature of private banking in Asia will be a mix of both onshore and offshore services. This is in line with their strategy to collaborate with leading domestic financial institutions in the region. 'We believe in working with the right partners who share our vision of the future of wealth and asset management,' said Vincent Magnenat, Asia group regional head and global head of strategies alliances of Lombard Odier. 'In HLB, we see a strong alignment on all fronts,' he added.
New Straits Times
09-05-2025
- Business
- New Straits Times
Six KLCI bank stocks trade at YTD discount as OPR holds for second year
KUALA LUMPUR: Six out of seven banking components of the FTSE Bursa Malaysia KLCI continued to trade at a year-to-date (YTD) discount as the Monetary Policy Committee (MPC) wrapped up its third meeting of the year. Leading the pack is CIMB Group Holdings Bhd, currently trading at RM6.87 a share, 15.5 per cent below its opening price of RM8.13 at the start of the year. The bank has a consensus target price of RM8.51, representing an upside potential of 23.11 per cent, according to Bursa Marketplace. CIMB, Malaysia's second-largest lender with a market capitalisation of RM74.7 billion, is covered by at least 18 research houses with target prices ranging from RM7.60 to RM9.68. The stock has traded between RM6.21 and RM8.50 over the past 52 weeks. Trailing behind is Hong Leong Financial Group Bhd (HLFG), whose shares closed at RM16.70, down 7.94 per cent from RM18.14 at the start of the year. HLFG has a consensus target price of RM23.15, reflecting an upside potential of 39.29 per cent. It is rated by at least four research houses, with price targets between RM21.40 and RM24.70. The stock's 52-week range spans from RM15.70 to RM20.18. At RM16.72 per share, the group has a market capitalisation of RM19.11 billion. HLFG is controlled by the Quek family through Hong Leong Group, which operates in both Malaysia and Singapore. The company serves as the umbrella for Hong Leong Bank Bhd, Hong Leong Capital Bhd and non-listed HLA Holdings Bhd. Its sister company, Hong Leong Bank, is also trading at a YTD discount, albeit marginally. The bank's share price has slipped 2.35 per cent to RM19.94 from RM20.42 on Jan 2, valuing the group at RM43.05 billion. However, unlike HLFG and CIMB, Hong Leong Bank climbed past its Jan 2 price, hitting a YTD high of RM21.40 on Feb 28. At least 16 research firms cover Hong Leong Bank, with target prices ranging between RM21.40 and RM31.40. The consensus target stands at RM24.69, implying an upside potential of 24.35 per cent. The remaining discounted counters are Malayan Banking Bhd, down 2.95 per cent, Public Bank Bhd, down 1.98 per cent, and AMMB Holdings Bhd, down 3.28 per cent. RHB Bank Bhd stands out as the sole gainer, rising 3.41 per cent YTD to RM6.67, driven in part by record earnings and dividends in 2024. The stock has a consensus target price of RM7.42, offering a potential upside of 10.26 per cent. It has traded between RM5.47 and RM7.04 over the past 12 months, with a current market capitalisation of RM29.34 billion. Yesterday, Bank Negara Malaysia held the overnight policy rate (OPR) steady at three per cent during its MPC, marking exactly two years since the rate was last adjusted. The central bank has maintained the OPR at this level since May 2023, following a cumulative 125 basis-point hike from the pandemic-era low of 1.75 per cent. The MPC is scheduled to meet next in July, September and November. In a recent note, Hong Leong Investment Bank Bhd said the banking sector may face margin compression if Bank Negara opts to cut the OPR in response to rising global tariff tensions. However, it said the impact on banks would be more manageable compared to past rate cuts, as lenders are expected to take pre-emptive measures such as shortening fixed deposit (FD) tenures. "This move allows for faster repricing at lower cost, while moderating FD growth to avoid overexposure ahead of any rate adjustments," it said. HLIB has maintained an 'Overweight' call on the sector. CIMB Securities Research, which holds a 'neutral' view on the banking sector, has issued 'buy' calls on Alliance Bank Malaysia Bhd, Public Bank and RHB Bank, mainly for their dividend appeal. "We expect banks' share prices to trade rangebound in the next few months until there is greater clarity on the external reciprocal tariff situation," it said.
