Hong Leong Finance (S41) H2 2024 earnings summary

Executive summary

• FY2024 net profit attributable to owners rose 11.5% YoY to $104.1m, supported by higher net interest income and a wider net interest margin.

• Total assets were $14.6bn; net loans were $11.7bn, deposits $12.3bn and shareholders’ funds $2.1bn at 31 Dec 2024.

Financial highlights

• Income before operating expenses increased 9.9% YoY to $233.3m; net interest income/hiring charges rose 11.3% to $225.1m.

• Profit before tax rose to $124.8m from $112.0m; profit after tax attributable to owners was $104.1m versus $93.4m.

• Fee and commission income fell 18.6% to $8.1m as property-financing activity and corporate advisory fees weakened.

• Operating expenses increased 3.7% to $108.8m, mainly from depreciation and digital-system, cybersecurity and infrastructure costs.

• Net loan assets were broadly stable at $11.668bn (+0.1%); deposits fell 2.7% to $12.300bn, while total assets declined 2.2% to $14.634bn.

Outlook and guidance

• 2025 priorities include digital customer experiences, customer-centric innovation and stronger ESG initiatives; geopolitical tensions weigh on the economic outlook.

• HLF Digital’s full launch in 2025 is expected to add features; a corporate-customer version and digital SME loan origination are also planned or in development.

• Strong capital, funding and liquidity provide headroom to fund growth opportunities; liquidity remained above regulatory minimums.