Latest news with #HongLeongBankBhd
New Straits Times
5 days ago
- Business
- New Straits Times
RHB Research: Loan growth, non-interest margin relief to lift Hong Leong Bank
KUALA LUMPUR: Hong Leong Bank Bhd is expected to post a decent set of results for the fourth quarter of the financial year 2025 (4Q25), according to RHB Investment Bank Bhd (RHB Research). In a note, the firm said the performance would be supported by strong loan growth outpacing the industry, net interest margin (NIM) relief from the statutory reserve requirement (SRR) cut, and robust non-interest income (non-II). "Our full-year earnings forecast implies a 4Q25 net profit of RM1.07 billion, up two per cent quarter-on-quarter and three per cent year-on-year. "That said, stronger than expected non-II and a higher than expected dividend payout could present upside surprises," it added. RHB Research noted that Hong Leong recorded strong loan growth in 4Q25, largely from its SME banking segment, particularly in the industrial, real estate, and electrical and electronics (E&E) industries, as well as among other data centre supply chain players. The firm said the bank's retail banking segment was also sound, with residential mortgages being a key driver. "As SME and consumer loans account for 19 per cent and 64 per cent of group loans, we believe Hong Leong's 4Q25 loan growth could reach the upper end of its six to seven per cent FY25 target, if not exceed it. "Management also observed strong current account and savings account (CASA) traction in 4Q25, although signs of seasonal year-end competition for deposits are emerging, particularly in the wealthy deposits segment," it said. RHB Research added that the combined impact of the SRR and overnight policy rate (OPR) cuts in May and July 2025 is expected to reduce NIM, which measures the difference between interest income and interest paid, by two to three basis points over a full year. However, it said management believes this impact could be offset by stronger non-II from falling bond yields and improving market sentiment, as well as potentially lower credit costs from reduced borrowing costs for customers. On asset quality, RHB Research said the bank's position remained stable in 4QFY25, with the gross impaired loans (GIL) ratio at 0.57 per cent in 3QFY25 and no signs of stress. The firm noted that exposure to US exporters is minimal, mostly in manufacturing and E&E, but management continues to monitor these accounts closely. "Strong loan growth during the quarter suggests a net credit charge is more likely than a writeback. "If GILs remain stable, the loan loss coverage (LLC) ratio, which measures how much provision a bank has set aside to cover impaired loans, at 95 per cent in 3Q25 should improve slightly. "Management plans to gradually rebuild it to above 100 per cent," it said. In terms of capital, RHB Research said that through internal capital optimisation, Hong Leong expects some capital uplift in 4Q25, with the CET-1 ratio at 12.8 per cent in 3Q25. It said along with the phased adoption of new Basel regulations, this may allow the group to raise dividend payouts to 40 per cent earlier than the FY27 guidance, compared to 33 per cent in FY24. "We estimate a full-year dividend per share (DPS) of RM0.74, which represents a 36 per cent payout. "This implies a 2H25 DPS of RM0.46 or a 47 per cent payout for the second half, assuming our full-year earnings forecast is met," it noted.
BusinessToday
08-08-2025
- Business
- BusinessToday
Stock Today: Hong Leong Bank Eases Slightly Amid Thin Trading
Shares in Hong Leong Bank Bhd closed marginally lower on Thursday, slipping 0.10% to RM19.10 as at 3.28 pm, amid subdued investor activity. The counter opened at RM19.00 and moved within a narrow range, touching a high of RM19.16 and a low of RM18.98. Volume stood at 616,000 shares traded, with modest buying interest seen on the bid side. At last look, the stock was quoted at RM19.08 on the buy queue and RM19.10 on the sell side. Its last closing price was RM19.12. While no fresh corporate developments were announced, the broader financial services sector traded cautiously ahead of key economic data expected later this week, with traders taking a wait-and-see approach. Despite the minor dip, Hong Leong Bank's year-to-date price movement shows relative resilience, having mostly traded within the RM18 to RM21 band over the past six months.
The Star
14-07-2025
- Business
- The Star
Trading ideas: Affin Bank, Hong Leong Bank, BTM, Jasa Kita, Greatech, Meta Bright, Hextar REIT, MRCB, Econpile, SkyGate
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Affin Bank Bhd has been upgraded from 'A' to 'AA' in the Morgan Stanley Capital International environmental, social and governance ratings. Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd will revise their lending and deposit rates by 25 bps, effective July 14. BTM Resources Bhd has scrapped its 7MW renewable energy power plant project, citing difficulties in securing financing and rising project costs. Jasa Kita Bhd 's substantial shareholders Tan Sri Tan Hua Choon and Datuk Seri Tan Han Chuan, who collectively hold 181.3mn shares or 40.3% equity interest, have inked a conditional share sale agreement with Kintan Prima Sdn Bhd for their stake at RM68.9mn cash or 38 sen a share. Greatech Tech Bhd said GTech Holdings Sdn Bhd has transferred its 57.7% stake in the automated machinery group to GTech's two shareholders. Meta Bright Group Bhd has sold its wholly-owned Australian subsidiary, Meta Bright Australia Pty Ltd, for RM25.4mn as part of a strategic shift towards strengthening domestic operations. Hextar Real Estate Investment Trust said it has entered into a deal to buy two parcels of leasehold land in Melaka, totalling 41.8 acres, for RM40mn. Malaysian Resources Corp Bhd, through its wholly owned subsidiary Country Annexe Sdn Bhd, has entered into a joint venture development agreement with Ipoh Sentral Sdn Bhd to undertake the proposed Ipoh Sentral project in Ipoh, Perak. Econpile Holdings Bhd 's wholly owned subsidiary, Econpile (M) Sdn Bhd, has secured a RM98.2mn construction contract from Eastmont Sdn Bhd for a proposed industrial development in Klang, Selangor. SkyGate Solutions Bhd said it is raising its stake in SkyGate Integration Sdn Bhd (formerly Leader Range Technology Sdn Bhd) to 95% by acquiring another 44% stake for RM9.8mn via a share issuance deal.
The Star
20-06-2025
- Business
- The Star
Hong Leong Bank issues RM400mil Tier 2 subordinated notes
KUALA LUMPUR: Hong Leong Bank Bhd (HLB) has issued RM400 million in nominal value of Tier 2 subordinated notes under its multi-currency Tier 2 subordinated notes programme (HLB T2 Programme). In a filing with Bursa Malaysia today, the bank said the issuance comprises two tranches: Tranche 6 Series 1, amounting to RM75 million and Tranche 6 Series 2 totalling RM325 million. "Tranche 6 Series 1, with a tenure of 10 years, has a coupon rate of 3.78 per cent per annum, and is non-callable for five years, while Tranche 6 Series 2 has a tenure of 12 years, a coupon rate of 3.85 per cent per annum, and is non-callable for seven years. "Both tranches pay coupons every six months, with Tranche 6 Series 1 callable from June 20, 2030, and Tranche 6 Series 2 from June 21, 2032, on any subsequent coupon payment date," it said. HLB added that the proceeds from the subordinated notes will be utilised, without limitation, for its working capital, general banking, and other corporate purposes, and the refinancing of any existing borrowings incurred, subordinated debt issued by the bank and/or any existing subordinated notes issued under the HLB T2 Programme. RAM Rating Services Bhd has assigned an AA1 rating for the subordinated notes programme. - Bernama
New Straits Times
28-05-2025
- Business
- New Straits Times
HLB logs RM946.7mil net profit, RM1.55bil revenue in Q3
KUALA LUMPUR: Hong Leong Bank Bhd's (HLB) posted a net profit of RM946.7 million in the third quarter ended March 31, 2025 (3Q25), down from RM1.04 billion a year ago. The 9.4 per cent profit fall was mainly due to higher operating expenses of RM23.7 million, lower share of profit from associated company of RM60.0 million and dilution loss from associated company of RM407.6 million. HLB's revenue for the quarter, however, rose to RM1.55 billion from RM1.44 billion previously, the bank's filing to Bursa Malaysia showed. Its earnings per share fell to 46.18 sen compared to 50.97 sen in 3Q24. No dividend was declared for the quarter. For the first nine months of FY25 (9MFY25), HLB's net profit rose to RM3.18 billion from RM3.16 billion a year ago, while revenue for the period climbed to RM4.78 billion from RM4.29 billion. The bank's net interest income for 9MFY25 was recorded at RM3.66 billion, marking a 5.8 per cent year-on-year (YoY) increase. This was underpinned by strong loan and financing growth as well as effective funding cost management. Accordingly, its net interest margin (NIM) was up five basis points (bps) YoY to 1.90 per cent. Its non-interest income for 9MFY25 maintained the notable improvement of 34.1 per cent YoY to RM1.12 billion, driven by encouraging performance in the wealth management business and GM franchise sales alongside the higher treasury and foreign exchange gain. The bank's expenses for 9MFY25 remained at RM1.85 billion, while the cost-to-income ratio was maintained at 38.8 per cent. Meanwhile, the bank's gross loans, advances and financing grew 7.2 per cent YoY to RM201.2 billion. This was driven by expansion in our key segments of mortgage, auto loans, SME and commercial banking as well as key overseas markets. Domestic loans/financing increased 7.1 per cent YoY, ahead of the industry growth rate of 5.3 per cent. The bank remains prudent in its funding and liquidity positions to strengthen resilience and stability, with loans to deposits ratio of 87.9 per cent as at March 31, 2025. Customer deposits for 9MFY25 rose 5.9 per cent YoY to RM225.0 billion with current account savings account expanding 5.0 per cent YoY to RM68.3 billion. HLB maintained a low gross impaired loans ratio of 0.57 per cent, reflecting stable asset quality. As of March 31, 2025, its capital position remained sound, with CET1, Tier 1, and total capital ratios at 12.8 per cent, 13.7 per cent, and 15.7 per cent, respectively. HLB group managing director and chief executive officer Kevin Lam said the bank is confident that the Malaysian economy will remain resilient amid the ongoing external headwinds. "At HLB, we focus on the execution of the 3-5 Year Transformative Plan to deliver sustainable results to our stakeholders. "With that, 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," he said in a separate statement. Lam said the bank acknowledges the presence of global uncertainties, particularly those stemming from evolving tariffs policies and negotiations, as well as policy responses from major central banks that could potentially influence the final growth outcome, even as resilient domestic demand is expected to provide a buffer against external headwinds. He added that by leveraging strengths in technology and artificial intelligence (AI), HLB will create innovative banking solutions that resonate with its customer across all touchpoints, solidifying its brand promise of "Built Around You".
