Hong Leong Financial Group Posts Higher FY2025 Net Profit Of RM3.25 Bln

KUALA LUMPUR, Aug 27 (Bernama) -- Hong Leong Financial Group Bhd’s (HLFG) net profit for the financial year ended June 30, 2025 (FY2025) rose to RM3.25 billion from RM3.19 billion in the previous financial year, driven by improved performance of commercial banking and insurance.

Revenue also increased to RM7.21 billion from RM6.65 billion previously.

In a filing with Bursa Malaysia, HLFG president and chief executive officer (CEO) Tan Kong Khoon said the group’s improved performance was driven by 8.5 per cent year-on-year (y-o-y) topline growth, led by above-industry loan growth, net interest margin expansion, and robust 18.1 per cent y-o-y growth in non-interest income (NoII).

Meanwhile, HLFG declared a final dividend of 52 sen per share, bringing the total dividend to 72 sen per share for FY2025, a 33.3 per cent increase from the previous year, bringing the financial year’s total dividend payout to RM827 million.

The group’s commercial banking division, Hong Leong Bank Bhd (HLB), saw its net profit rise to RM4.27 billion for FY2025 compared to RM4.19 billion, supported by higher net income and higher write back of impairment losses on loans.

HLB’s total income for FY2025 recorded a 10.9 per cent y-o-y growth to RM6.39 billion, attributed to sustained growth in both loans and financing portfolio, as well as non-interest income contribution.

In a separate Bursa Malaysia filing, HLB group managing director and CEO Kevin Lam said for FY2025, the pre-Bank of Chengdu (BOCD) stake acquisition profit registered a 21.4 per cent y-o-y growth to RM4.30 billion, attributable to robust topline expansion, diligent cost management and the one-off release of management overlay allowance (MOA) in the previous quarter.

“The normalised pre-BOCD profit excluding the MOA release is still commendable, registering a double-digit growth of 10.1 per cent to RM3.90 billion,” he said.

Lam said gross loans, advances and financing continued its growth momentum, with 7.8 per cent y-o-y growth to RM210.1 billion, predominantly led by strong performance in its key segments of mortgage, auto loans, SME and commercial banking, as well as key overseas markets.

Customer deposits for FY2025 increased 8.4 per cent y-o-y to RM238.9 billion, with Current Account and Savings Account (CASA) uplifted by 9.6 per cent y-o-y to RM78.5 billion.

For the fourth quarter (4Q), the bank’s net profit rose to RM1.08 billion from RM1.03 billion, while revenue increased to RM1.62 billion from RM1.47 billion previously.

HLB’s board has declared a final dividend of 68 sen per share, bringing the total dividend to 96.0 sen per share for FY2025, an uplift of 28 sen compared to the previous year.

“This translates to a higher dividend payout ratio of 46.6 per cent, marking a considerable rise from 33.6 per cent last year, the bank said.

Meanwhile, HLFG’s investment banking and asset management division, Hong Leong Capital Bhd (HLCB), reported a 40.3 per cent y-o-y decline in its FY2025 net profit to RM58.44 million from RM97.91 million in the previous financial year.

The lower net profit was primarily attributed to lower equity investment returns as well as reduced contribution from stockbroking and fund management businesses.

Revenue also decreased to RM348.36 million from RM400.38 million previously.

The HLCB board declared a final dividend of 19 sen per ordinary share, amounting to total dividends of RM46.9 million for FY2025.

-- BERNAMA