HLB logs RM946.7mil net profit, RM1.55bil revenue in Q3

KUALA LUMPUR: Hong Leong Bank Bhd's (HLB) posted a net profit of RM946.7 million in the third quarter ended March 31, 2025 (3Q25), down from RM1.04 billion a year ago.
The 9.4 per cent profit fall was mainly due to higher operating expenses of RM23.7 million, lower share of profit from associated company of RM60.0 million and dilution loss from associated company of RM407.6 million.
HLB's revenue for the quarter, however, rose to RM1.55 billion from RM1.44 billion previously, the bank's filing to Bursa Malaysia showed.
Its earnings per share fell to 46.18 sen compared to 50.97 sen in 3Q24.
No dividend was declared for the quarter.
For the first nine months of FY25 (9MFY25), HLB's net profit rose to RM3.18 billion from RM3.16 billion a year ago, while revenue for the period climbed to RM4.78 billion from RM4.29 billion.
The bank's net interest income for 9MFY25 was recorded at RM3.66 billion, marking a 5.8 per cent year-on-year (YoY) increase.
This was underpinned by strong loan and financing growth as well as effective funding cost management.
Accordingly, its net interest margin (NIM) was up five basis points (bps) YoY to 1.90 per cent.
Its non-interest income for 9MFY25 maintained the notable improvement of 34.1 per cent YoY to RM1.12 billion, driven by encouraging performance in the wealth management business and GM franchise sales alongside the higher treasury and foreign exchange gain.
The bank's expenses for 9MFY25 remained at RM1.85 billion, while the cost-to-income ratio was maintained at 38.8 per cent.
Meanwhile, the bank's gross loans, advances and financing grew 7.2 per cent YoY to RM201.2 billion.
This was driven by expansion in our key segments of mortgage, auto loans, SME and commercial banking as well as key overseas markets.
Domestic loans/financing increased 7.1 per cent YoY, ahead of the industry growth rate of 5.3 per cent.
The bank remains prudent in its funding and liquidity positions to strengthen resilience and stability, with loans to deposits ratio of 87.9 per cent as at March 31, 2025.
Customer deposits for 9MFY25 rose 5.9 per cent YoY to RM225.0 billion with current account savings account expanding 5.0 per cent YoY to RM68.3 billion.
HLB maintained a low gross impaired loans ratio of 0.57 per cent, reflecting stable asset quality.
As of March 31, 2025, its capital position remained sound, with CET1, Tier 1, and total capital ratios at 12.8 per cent, 13.7 per cent, and 15.7 per cent, respectively.
HLB group managing director and chief executive officer Kevin Lam said the bank is confident that the Malaysian economy will remain resilient amid the ongoing external headwinds.
"At HLB, we focus on the execution of the 3-5 Year Transformative Plan to deliver sustainable results to our stakeholders.
"With that, we are pleased to announce that our business performance thus far has been commendable underpinned by solid loans/financing growth, strong non-interest income contribution and healthy asset quality," he said in a separate statement.
Lam said the bank acknowledges the presence of global uncertainties, particularly those stemming from evolving tariffs policies and negotiations, as well as policy responses from major central banks that could potentially influence the final growth outcome, even as resilient domestic demand is expected to provide a buffer against external headwinds.
He added that by leveraging strengths in technology and artificial intelligence (AI), HLB will create innovative banking solutions that resonate with its customer across all touchpoints, solidifying its brand promise of "Built Around You".

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

New Straits Times

2 hours ago

• New Straits Times

MARKET PULSE PM JUNE 23, 2025 [WATCH]

KUALA LUMPUR: News on stock, crypto and ringgit moves. Bursa Malaysia rebounded sharply to end higher, lifted by bargain hunting and steady local investor interest. The Energy sector led gains as Iran's threat to block the Strait of Hormuz in response to US strikes raised concerns over global oil and gas supply disruptions. Meanwhile, the ringgit eased against the greenback, settling at 4.2880. In the crypto market, Bitcoin rose to RM437,400. Ethereum also climbed to RM9,686, while Solana inched up to RM576. That wraps up today's Market Pulse.

New Straits Times

3 hours ago

• New Straits Times

Bursa Malaysia rebounds to close at day's high on bargain hunting

KUALA LUMPUR: Bursa Malaysia reversed its morning losses to close higher, supported by bargain hunting and sustained local investor interest. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.87 points, or 0.92 per cent, to 1,516.61 from Friday's close of 1,502.74. The index opened 9.55 points lower at 1,493.19 and fell as low as 1,488.89 in the morning session before trending up to close at its intraday high. The broader market, however, was negative, with losers outpacing gainers 697 to 274, while 490 counters were unchanged, 932 untraded and 41 suspended. Turnover surged to 3.09 billion units worth RM1.91 billion against 2.6 billion units worth RM3.37 billion on Friday. UOB Kay Hian Wealth Advisors Sdn Bhd investment research head Mohd Sedek Jantan said the FBM KLCI recovered from an early dip below a key psychological level as markets reacted impulsively to the United States' strikes on three Iranian nuclear facilities over the weekend. He noted that while the initial sell-off reflected heightened geopolitical anxiety, the index rebounded strongly, supported by bargain hunting and sustained local investor interest. "Historically, markets tend to absorb such shocks relatively quickly, with the direct impact of geopolitical risks often proving short-lived," he told Business Times. Sedek added that the ongoing Iran-Israel conflict has led to a spike in global oil prices, but the immediate pass-through to domestic inflation remains limited. Meanwhile, he said, export-oriented stocks may derive temporary support from a strengthening ringgit, as currency appreciation can lower import costs and reflect greater investor confidence. "However, this advantage may be offset if global demand slows or trade orders are delayed—developments that could weigh on revenue visibility and corporate earnings in the coming quarters," he said. Even though the ringgit was slightly weaker today, Sedek said the exchange rate is still considered stronger compared to last year's average.

New Straits Times

5 hours ago

• New Straits Times

Bursa's Energy Index breaks from pack on oil price rally

KUALA LUMPUR: Bursa Malaysia's Energy Index rose to the top of sectoral gainers, driven by a global rally in oil prices amid heightened geopolitical tensions in the Middle East. It was the only index to post a gain of over one per cent, bucking the broader downtrend across sectors that persisted into the afternoon session. As at 3pm, the 31-stock Energy Index had climbed 1.32 per cent, or 9.73 points, to 745.44. Year-to-date, the index is still down 10.23 per cent. Reservoir Link Energy Bhd, Hibiscus Petroleum Bhd and Dialog Group Bhd were among the most actively traded counters fuelling the sector's gains. At press time, Reservoir Link rose 1.35 per cent to 37.5 sen. The counter was the third most active with nearly 40 million shares changing hands, its highest single-day volume in at least six months. Hibiscus Petroleum led the gainers in the oil and gas space, surging 7.02 per cent or 12 sen to RM1.83 on 17.21 million shares traded. Bumi Armada Bhd edged up half a sen to 47.5 sen, while Dialog Group Bhd added four sen, or 2.60 per cent, to RM1.58 with 6.32 million shares traded. The rally in energy stocks followed a spike in global crude oil prices after United States military strikes on Iran intensified concerns of supply disruptions in the Middle East. Brent crude futures for August rose 2.4 per cent to US$79 a barrel, while West Texas Intermediate (WTI) climbed 2.5 per cent to US$73.84. Both benchmarks had earlier jumped as much as four per cent to hit four-month highs, with Brent briefly touching US$81 a barrel. At the time of writing, Brent and WTI were trading at US$77.51 and US$74.31 respectively, both up about 0.65 per cent on the day and marking their highest levels in a month. In Tehran, Iranian Supreme Leader Ayatollah Ali Khamenei vowed retaliation against "the Zionist enemy" in his first public statement since the US joined Israel's attacks on Iran. Market participants anticipate further price gains as fears grow that Iran may retaliate by closing the Strait of Hormuz, a vital chokepoint for about one-fifth of the world's crude oil supply. Back home, the FTSE Bursa Malaysia KLCI rose 0.51 per cent, or 7.62 points, to 1,510.36, rebounding from last Friday's close of 1,493.19. Apart from energy, financial services was the only other sectoral index in the green, up 0.43 per cent. The day's biggest sectoral decliners were the Transportation & Logistics, Technology, and Healthcare sectors, which fell 1.28 per cent, 1.23 per cent and one per cent respectively.