Hong Leong Bank (HLBANK) investor relations material

Executive summary

• Achieved steady topline and operating profit growth, with profit after tax for the nine months ended 31 March 2026 rising 3.3% year-over-year to RM3,289 million, reflecting resilience amid external headwinds and a challenging environment.

• Gross loans/financing expanded 8.4% year-over-year to RM218.2 billion, with strong growth across mortgage, auto, SME, commercial, and overseas segments.

• Maintained strategic discipline, supporting customers and prioritizing asset quality with a GIL ratio of 0.60%.

• CASA balances grew 14.1% year-over-year, driving a CASA ratio of 32%.

• Received recognition as Best Managed Bank in Malaysia and for leadership excellence.

Financial highlights

• Total income rose 3.2% year-over-year to RM4,932 million for 9MFY26, driven by loan/financing growth and prudent funding cost management.

• Net interest income increased 3.5% to RM3,793 million; non-interest income up 2.2% to RM1,140 million.

• Operating profit before allowances grew 6.0% to RM3,099 million.

• Profit after tax improved 3.3% year-over-year to RM3,289 million.

• One-off items: RM399 million MOA release and RM408 million dilution loss from associates.

Outlook and guidance

• Gross loans growth target for FY2026 is 6.0%-7.0%; achieved 8.4% for 9MFY26.

• Net interest margin guidance of 1.80%-1.90%, with 1.83% achieved.

• Cost-to-income ratio targeted at ~39.0%, achieved 37.2%.

• GIL ratio target below 0.65%, achieved 0.60%.

• Malaysian economy expected to remain resilient, with GDP growth projected at 4.0%-5.0% for the year, supported by domestic consumption, government initiatives, and investments in AI, E&E, and data centers.