Hong Leong Bank (HLBANK) Q1 2025 earnings summary

Executive summary

• Total income for Q1FY25 increased 14.6% year-over-year, driven by robust net interest and non-interest income growth, with profit after tax rising 5.8% to RM1,090 million and profit before tax up 7.7% to RM1,339 million.

• Earnings per share improved to 53.2 sen, and all key performance indicators were within management guidance.

• Strategic investments in technology, talent, and digital initiatives supported sustainable cost-to-income ratio and business growth.

Financial highlights

• Net interest income rose 10.5% year-over-year to RM1,244 million, non-interest income surged 32.0% to RM354 million, and operating profit before allowances grew to RM972 million.

• Gross loans and financing expanded 6.9% year-over-year to RM194.2 billion, with strong momentum in mortgages, auto loans, SME, and commercial banking.

• CASA balances rose 13.6% year-over-year to RM70.4 billion, with a CASA ratio of 32.1%.

• Total assets stood at RM292.9 billion as of 30 September 2024.

Outlook and guidance

• Management expects continued disciplined execution of strategic priorities, with FY2025 targets including gross loans growth of 6.0%-7.0%, NIM of 1.85%-1.95%, and ROE of ~12%.

• Positive growth momentum in the Malaysian economy is expected, with GDP growth forecasted at 4.8%-5.3%, supported by household spending, investment, and global tech upturn.

• Focus remains on digital innovation, ESG initiatives, and executing the 3-5 Year Strategic Plan.