Hong Leong Bank (HLBANK) Q4 2025 earnings summary

Executive summary

• Total income rose 10.9% year-over-year, driven by strong loans/financing momentum and a 33.4% increase in non-interest income.

• Net profit after tax for FY2025 was RM4,273 million, up 1.8% year-over-year, with normalised profit after tax up 4.3% excluding one-off items.

• Pre-tax profit for FY2025 rose 4.4% to RM5,360 million, supported by higher net income and writebacks of impairment losses.

• Declared a total dividend of 96 sen per share for FY2025, a 41% increase year-over-year, with a payout ratio of 47%.

• Maintained a strong balance sheet and asset quality, with a GIL ratio of 0.54% and high liquidity and capital ratios.

Financial highlights

• Net interest income increased 5.5% year-over-year to RM4,927 million; NIM stable at 1.90%.

• Non-interest income surged 33.4% to RM1,471 million, with wealth management and franchise sales as key drivers.

• Operating profit before allowances grew 14.2% to RM3,919 million.

• Cost-to-income ratio improved to 38.7%.

• Gross loans grew 7.8% year-over-year to RM210.1 billion, with strong contributions from retail, SME, and international operations.

• Deposits rose 8.4% to RM238.9 billion; CASA ratio at 32.9%.

Outlook and guidance

• FY2026 targets: gross loans growth of 6.0%-7.0%, NIM of 1.80%-1.90%, cost-to-income ratio ~39%, GIL ratio <0.65%, and ROE of 11.5%-12.0%.

• Management is cautiously optimistic for FY2026, expecting Malaysia’s GDP growth of 4.0%–4.8%, with focus on digital, AI, ESG, and core business growth.