Hong Leong Finance (S41) investor relations material

Executive summary

• H1 2026 net profit rose 8.8% YoY to $35.0m, supported by improved net interest margin and 92.9% growth in fee income.

• Net loan assets grew 3.9% from Dec 2025 to $12.572bn; customer deposits increased 4.9% to $12.902bn.

Financial highlights

• Net interest income rose 8.4% YoY to $96.8m as interest expense fell 47.7%, outpacing a 27.5% decline in interest income/hiring charges.

• Fee and commission income increased 92.9% YoY to $7.9m; total operating expenses rose 6.7% to $64.9m.

• Profit before tax increased 8.8% YoY to $42.2m; income tax expense was $7.2m and net profit was $35.0m.

• Net writeback of allowances was $2.4m, versus $6.2m in H1 2025; it included a $3.2m writeback on non-credit-impaired loans, partly offset by $0.8m provision for credit-impaired loans.

Outlook and guidance

• Priorities are to protect net interest margin through disciplined pricing and asset-liability management, while advancing tailored financing, sustainable finance and digital banking services.

• Management cited macroeconomic, geopolitical and monetary-policy uncertainty, and intends to pursue profitable growth and resilience amid a competitive financial landscape.