Hong Leong Bank (HLBANK) Q3 2025 earnings summary

Executive summary

• Achieved record total assets above RM300 billion and gross loans/financing over RM200 billion for the first time, reflecting robust business growth and execution of strategic plans.

• Delivered strong topline growth of 11.3% year-over-year, with both net interest income and non-interest income contributing significantly.

• Pre-tax profit for the nine months ended 31 March 2025 rose 3.9% year-over-year to RM4,002.2 million, driven by higher net income and significant writebacks of impairment losses on loans and financial assets.

• Maintained resilient asset quality with a low gross impaired loans (GIL) ratio of 0.57%, despite market uncertainties.

• Advanced regional wealth management through a strategic alliance with a leading Swiss private bank.

Financial highlights

• Net interest income for 9MFY25 rose 5.8% year-over-year to RM3,663 million; non-interest income surged 34.1% to RM1,115 million.

• Total income increased 11.3% to RM4,778 million; operating profit before allowances up 13.2% to RM2,924 million.

• Profit before tax and profit after tax stood at RM4,002 million and RM3,185 million, respectively; adjusted profit after tax (excluding MOA release and dilution loss) up 4.0% year-over-year to RM3,289 million.

• Cost-to-income ratio improved to 38.8%, reflecting enhanced operational efficiency.

• Return on equity (excluding one-offs) at 11.6%; net assets per share at RM18.8 and EPS at 155 sen.

Outlook and guidance

• Gross loans growth target for FY2025 set at 6.0%-7.0%, with 9MFY25 achieving 7.2%.

• Net interest margin guidance at 1.85%-1.95%, with 9MFY25 at 1.90%.

• CASA mix target above 32.0%, currently at 30.4%.

• Return on equity (excluding one-offs) guided at 11.6%.

• Focus remains on digital transformation, ESG integration, and strengthening the ASEAN franchise.