KUALA LUMPUR: Hong Leong Bank Bhd
posted a resilient first half with a slight increase in its bottomline on the back of robust loans growth and expansion in non-interest income.
In the six-month period to Dec 31, 2025, the bank recorded a net profit of RM2.26bil, which was improved upon RM2.24bil in the year-ago period.
Revenue for the period rose to RM3.35bil from RM3.23bil in the comparative year-ago period.
For the second quarter, net profit was higher at RM1.17bil as compared to RM1.15bil, while quarterly revenue rose to RM1.67bil from RM1.63bil in the year-ago quarter.
The board of directors declared an interim dividend of 30 sen a share, with entitlement date on March 16, 2026, and payment date on March 27, 2026.
Kevin Lam, group managing director and CEO of Hong Leong Bank, said the bank recorded sustained momentum with gross loans/financing expanding 8.2% year-on-year (y-o-y) to RM215.7bil.
This was supported by the bank's mortgage, auto loans, SME and commercial banking segments, as well as key overseas markets.
"Upholding the bank’s stringent credit underwriting standards, we continued to maintain a solid GIL ratio of 0.59% ensuring we remain well-positioned to navigate future uncertainties while delivering value to our stakeholders," he said in a statement.
Non-interest income also contributed to total income growth, expanding 7.5% y-o-y on the back of a solid performance in wealth management business and global markets franchise sales.
Hong Leong Bank's customer deposits in 1HFY26 grew 6.8% to RM242bil while current account savings account (Casa) improved 12.1% y-o-y to RM79.6bil. Casa ratio strengthened to 32.9%.
Separately, Hong Leong Bank's holding company Hong Leong Financial Group Bhd (HLFG) reported a net profit of RM1.74bil in the first half, up from RM1.69bil in the same period in the previous year. Revenue was RM3.86bil, up from RM3.75bil in the comparative period.
In the second quarter, net profit was RM899.25mil against RM839.46mil in the year-ago quarter, while revenue climbed to RM1.92bil from RM1.86bil a year earlier.
The group said its insurance division, HLA Holdings Sdn Bhd, posted an 10.7% higher pre-tax profit y-o-y due to improved investment income from domestic equities and higher contributions from associate MSIG Insurance (Malaysia) Bhd.
Investment banking and fund management division Hong Leong Capital Bhd's pre-tax profit was 9.1% higher y-o-y, primarily attributable to stronger contributions from investment
banking division and higher mark-to-market equity investments gains.
"Hong Leong Financial Group’s improved 1H FY2026 performance is a testament of the strong
fundamentals and growing momentum in all segments of our business. Strong topline growth, stringent cost controls and solid asset quality contributed to improved profitability," said Tan Kong Khoon, president and CEO of HLFG, in a statement.
The board of directors declared an interim dividend of 22 sen per share for shareholders on the record of depositors on March 16, 2026, payable on March 31, 2026.
