Hong Leong Bank ends FY25 with higher net profit of RM4.27bil, declares 68c div/share

KUALA LUMPUR: Hong Leong Bank Bhd wrapped a strong financial year, underpinned by net interest income growth and a wider net interest margin (NIM), as well as a surge in non-interest income.

In a statement announcing its results, the bank said net profit in the fourth quarter ended June 30, 2025 (4QFY25), came to RM1.09bil, up from RM1.03bil in the year-ago quarter. Earnings per share rose to 53.1 sen from 50.45 sen in the comparative quarter.

It reported revenue of RM1.62bil in 4QFY25, against RM1.48bil in 4QFY24.

Over four cumulative quarters, Hong Leong Bank said net profit was RM4.27bil, up from RM4.2bil in the previous year. Revenue was also stronger at RM6.4bil in FY25 against RM5.77bil in FY24

The board declared a final dividend of 68 sen a share, with entitlement and payment dates to be announced at a later time. 

Sustaining its growth trajectory, the bank's net interest income increased 5.5% year-on-year (y-o-y) in FY25 to RM4.93bil due to expansion in loans/financing and lower cost of funds. NIM was four basis points higher y-o-y at 1.9%

Non-interest income leapt 33.4% to RM1.47bil in FY25, primarily owing to a robust performance in wealth management and global markets franchise sales, complemented by favourable treasury and foreign exchange gains. 

Operating expenses during the year registered at RM2.48bil, which yielded a positive JAWS and an improved cost-to-income raito of 38.7% due to strategic cost management initiatives and benefits from AI realisation.

Gross loans, advances and financing expanded 7.8% y-o-y to RM210.1bil, with domestic loans/financing growing 8% y-o-y.

Customer deposits in FY25 increased 8.4% y-o-y to RM238.9bil, with current account savings account (Casa) rising 9.6% y-o-y to RM78.5bil - translating to an improved Casa ratio of 32.9%.

"Hong Leong Bank delivered another year of resilient and robust performance amidst a challenging economic landscape," said group managing director and CEO Kevin Lam.

"We are confident that our customer-centric approach, combined with strategic investments in digital innovation and sustainable practices, will continue to drive growth and solidify our position towards our unwavering goal to be the best-run bank in Malaysia.”

Separately, Hong Leong Bank's parent company, Hong Leong Financial Group Bhd (HLFG), announced a record-high net profit of RM3.25bil in FY25, a 1.8% improvement over RM3.2bil in the previous year.

The group said the bottomline was driven by 8.5% y-o-y topline growth to RM7.22bil, led by above-industry loan growth, net interest margin expansion, and robust 18.1% y-o-y growth in non-interest income.

The board declared a final dividend of 52 sen per share, with entitlement and payment dates to be announced in due course. 

"Looking ahead, HLFG is committed to unlocking further synergies across the Group’s integrated financial ecosystem, enabling us to not only acquire new customers but also enhance customer

value through targeted cross-selling and up-selling. The group aims to achieve this by leveraging our sales distribution strength and competitive product suite," said the group in a statement.