Results Announcement Date: 27 November 2025 (Closing Share Price: RM21.20)

Hong Leong Bank’s Net Profit was flat compared to pcp. Higher Net Interest Income, Islamic Banking and Other Operating Income were offset by higher loan loss provisioning and lower Associates income contribution.

• Cost-Income Ratio (CIR) came in at a commendable 36.0%.
• Since 31/12/25, Net Loans were up by 6.5% while Customer Deposits grew 4.2%.
• Associates income was lower than pcp due to recent stake dilution in Bank of Chengdu.
• Excluding Associates income, Operating Profit was RM1,040 mil compared RM964 mil in 2025Q1, up 7.8%.
• CASA expanded 9.1% y-o-y to RM76.8 billion, which is a CASA ratio of 32.5%.

Dividends from Associates

• Received RM355 mil compared to RM360 mil in pcp.

Management kept all FY26 guidance items:

• CIR 39% (Q1: 36.0%)
• GIL ratio <0.65% (Q1: 0.57%)
• Net Credit Cost <10bps (Q1: 7bp)
• CASA mix > 32% (Q1: 32.5%)
• ROE 11.5-12% (Q1: 11.2%).

NIM guidance fine-tuned to 1.86-1.87% from 1.8-1.9% before (Q1: 1.84%). Despite CIR of 36% well below management’s target of 38-39%, it prefers to keep this unchanged as it assesses the sustainability of AI productivity benefits.

Hong Leong Bank ROE guidance would suggest a Net Profit target of around RM4.4 to RM4.5 billion, or EPS of RM2.15 to RM2.20 for FY2026.