Hong Leong Bank (HLBANK) Q2 2026 earnings summary

Executive summary

• Operating profit before associate contribution for H1FY26 rose 5.6% year-over-year to RM2,075 million, reflecting resilient performance amid external headwinds.

• Pre-tax profit for the half-year ended 31 December 2025 rose 0.6% year-over-year to RM2,757.5 million, driven by higher net income and lower operating expenses, partially offset by increased impairment losses and lower associate contributions.

• Profit after tax reached RM2,260 million, up 1.0% year-over-year, moderated by lower associate contribution and FX impact.

• Loans/financing grew 8.2% year-over-year, surpassing FY2026 target range.

• Non-interest income rose 7.5% year-over-year, with strong contributions from wealth management and global markets.

Financial highlights

• Net interest income increased 2.6% year-over-year to RM2,537 million.

• Total income rose 3.8% year-over-year to RM3,352 million.

• Operating expenses declined 4.0% year-over-year, improving cost-to-income ratio to 35.9%.

• Interim dividend per share increased to 30 sen.

• Customer deposits rose 6.8% year-over-year to RM242.0 billion.

Outlook and guidance

• Positive outlook for the Malaysian economy, expecting 2026 GDP growth of 4.0% to 4.5%.

• Growth to be supported by policy easing, pro-growth measures, and initiatives in AI, digital, and green technology.

• Continued focus on digital transformation, ESG integration, and customer-centric solutions.

• On track to meet or exceed FY2026 KPIs for loans growth, NIM, CIR, GIL, net credit cost, and CASA mix.

• Return on equity slightly below target at 11.4%.