Hong Leong Bank (HLBANK) investor relations material

Executive summary

• FY2026 total income rose 4.6% YoY to RM6.693bn and profit after tax increased 6.0% to RM4.531bn.

• Profit before tax increased 2.2% to RM5.480bn; higher impairment charges and lower associate earnings tempered growth.

• Loans and financing grew 7.7% to RM226.3bn; declared FY2026 dividends totalled 110 sen per share, with a 50% payout ratio.

• Q4FY26 profit after tax was RM1.243bn, up 14.2% YoY; pre-tax profit rose 7.9% YoY to RM1.465bn.

• Total assets reached RM328.4bn; net loans were RM225.3bn and customer deposits RM252.1bn at 30 June 2026.

Financial highlights

• Net interest income increased 3.2% YoY to RM5.086bn; non-interest income rose 9.3% to RM1.608bn, or 24.0% of total income.

• Operating profit before allowances grew 6.6% to RM4.179bn; operating expenses increased 1.4% to RM2.514bn.

• Q4FY26 total income was RM1.761bn, up 8.7% YoY; net interest income rose 2.3% to RM1.293bn and non-interest income rose 31.6% to RM468m.

• FY2026 basic EPS was 221.0 sen versus 208.5 sen; Q4 basic EPS was 60.6 sen versus 53.1 sen.

• Prior-year PBT included a non-recurring RM407.6m dilution loss; excluding this item, FY2026 PBT growth was constrained by impairments and lower associate profit.

Outlook and guidance

• FY2027 targets: loans growth 6.0%-7.0%, NIM 1.80%-1.90%, CIR below 39.0%, GIL below 0.65% and net credit cost below 10 bps.

• FY2027 CASA mix target is 35.0% and ROE target is 11.0%-11.5%, versus FY2026 actual ROE of 11.2%.

• Malaysian GDP is expected to expand 4.0%-5.0% in 2026, supported by domestic consumption, AI-driven exports, investment initiatives, data centres and E&E demand.

• Priorities include digital and AI investment, strategic alliances, product innovation, prudent risk management, balance-sheet discipline and sustainability integration.