Hong Leong Finance (S41) H1 2025 earnings summary

Executive summary

• H1 2025 net profit fell 38.7% YoY to $32.2m, primarily as compressed net interest margin reduced net interest income by 20.8% to $89.2m.

• Asset quality remained stable, with a 0.4% NPL ratio; loan assets rose 0.8% from Dec 2024 and the liquidity buffer remained above regulatory minimums.

Financial highlights

• Interest income and hiring charges fell 18.6% YoY to $247.3m; income before operating expenses declined 20.0% to $93.4m.

• Operating expenses rose 9.1% to $60.8m; operating profit before allowances dropped 46.5% to $32.6m.

• Profit before tax declined 38.5% to $38.8m; net profit attributable to owners fell 38.7% to $32.2m, and annualised basic EPS was 14.36 cents vs 23.45 cents.

• Net allowances were a $6.2m writeback vs $2.1m in H1 2024, including a $5.8m writeback on non-credit-impaired loans after setting aside an allowance for economic uncertainty and US tariff impacts.

Outlook and guidance

• Full-year Singapore GDP growth forecast remains 0.0%–2.0%; priorities include supporting local SMEs, expanding green financing, strengthening credit risk management and modernizing infrastructure.

• HLF Digital is expected to launch publicly later in 2025, with an integrated omnichannel experience alongside branch and relationship-manager service.