Results Announcement Date: 27 February 2026 (Closing Share Price: RM23.28)

Net Profit for H1 of RM2.26 billion was flat from pcp of RM2.24 billion. The current period saw a significantly lower Associates contribution of RM683m compared to RM775m previously, mainly due to the dilution of its stake in Bank of Chengdu from 19.8% to 17.8%. Since the start of HLB’s financial year on 1/7/25, Customer Deposits grew 1.3%  to RM242 bil, while Net Loans grew 2.7%.

For the current quarter:

• Cost to Income Ratio came in at 35.7% which again demonstrates HLB’s  superior cost discipline.
• CASA ratio strengthened to 32.9% (up from 32.5% as at 30/9/25).
• CET 1, Tier 1 and Total Capital ratios of 12.6%, 13.5% and 15.6% respectively as at 31/12/25. 

• Dividends from Associates received to date remained at RM355 mil for 2026H1 compared to RM360 mil in FY2025H1.

FY26 guidance items maintained:
– CIR 39% (H1: 35.9%)
– GIL ratio <0.65% (Q2: 0.59%)
– CASA mix > 32% (Q2: 32.9%)
– ROE 11.5-12% (H1: 11.5%)

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. Assuming 48-50% dividend payout ratio (FY2025 was 46%), this would translate to DPS of between RM0.99 to RM1.10. Less the 30 sen Interim Dividend just declared, the final dividend would potentially be between 69 to 80 sen, compared to FY2025 final dividend of 68 sen.