QUARTERLY RESULTS
| Quarter Ending | Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | Mar-26 |
| Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
| Interest Income | 2,241,970 | 2,252,694 | 2,218,778 | 2,170,794 | 2,246,714 | 2,258,794 | 2,211,286 | 2,159,236 |
| Interest Expense | (1,260,910) | (1,242,653) | (1,226,105) | (1,207,830) | (1,224,866) | (1,233,687) | (1,209,026) | (1,160,663) |
| Net Interest | 981,060 | 1,010,041 | 992,673 | 962,964 | 1,021,848 | 1,025,107 | 1,002,260 | 998,573 |
| Islamic Banking Income | 259,914 | 287,813 | 297,441 | 271,953 | 302,626 | 317,726 | 310,689 | 298,065 |
| Other Operating Income | 235,637 | 300,020 | 341,935 | 313,051 | 295,665 | 341,997 | 353,863 | 283,811 |
| Other Operating Expenses | (628,117) | (625,510) | (627,485) | (600,549) | (625,655) | (606,868) | (595,819) | (629,998) |
| Prov for Loan Losses | 31,168 | (7,582) | (4,129) | 398,218 | (3,007) | (38,010) | (36,765) | (37,344) |
| Impairment/Writeback on Fin Inv | 0 | 0 | 0 | 0 | 99 | 0 | 491 | (70) |
| Associates | 402,125 | 374,588 | 400,175 | 324,150 | 366,598 | 311,100 | 371,784 | 344,568 |
| Profit Before Tax | 1,281,787 | 1,339,370 | 1,400,610 | 1,669,787 | 1,358,174 | 1,351,052 | 1,406,503 | 1,257,605 |
| Tax Expense | (247,790) | (249,415) | (252,426) | (315,488) | (269,568) | (260,075) | (237,967) | (228,349) |
| Unusual Items (net of tax) | 0 | 0 | 0 | (407,602) | 0 | 0 | ||
| Profit After Tax | 1,033,997 | 1,089,955 | 1,148,184 | 946,697 | 1,088,606 | 1,090,977 | 1,168,536 | 1,029,256 |
| Net Profit After Tax | 1,033,997 | 1,089,955 | 1,148,184 | 946,697 | 1,088,606 | 1,090,977 | 1,168,536 | 1,029,256 |
| Diluted EPS (sen) | 50.4 | 52.9 | 55.7 | 45.9 | 52.8 | 52.9 | 56.7 | 49.9 |
| BALANCE SHEET | ||||||||
| Gross Loans | 194,927,414 | 194,231,854 | 199,373,123 | 201,247,097 | 210,063,757 | 211,816,976 | 215,657,857 | 218,183,471 |
| Impaired Loans | (1,622,946) | (1,533,143) | (1,526,530) | (1,092,689) | (1,099,167) | (1,076,074) | (1,058,744) | (1,056,812) |
| Net Loans | 193,304,468 | 192,698,711 | 197,846,593 | 200,154,408 | 208,964,590 | 210,740,902 | 214,599,113 | 217,126,659 |
| Total Assets | 297,789,072 | 292,918,077 | 296,251,551 | 300,904,859 | 314,618,124 | 312,722,009 | 316,095,983 | 317,309,976 |
| Deposits from Customers | 220,432,800 | 219,436,862 | 226,734,160 | 224,963,961 | 238,926,005 | 236,294,042 | 242,044,946 | 243,542,405 |
| Deposits from Financial Institutions | 11,370,939 | 5,994,709 | 9,193,529 | 10,247,203 | 9,935,753 | 12,592,144 | 10,328,113 | 7,685,974 |
| Total Liabilities | 260,494,984 | 256,476,520 | 258,197,611 | 262,411,462 | 275,331,148 | 273,769,134 | 276,254,514 | 277,108,886 |
| Net Assets | 37,294,088 | 36,441,557 | 38,053,940 | 38,493,397 | 39,286,976 | 38,952,875 | 39,841,469 | 40,201,090 |
| Shareholders Equity | 37,294,088 | 36,441,557 | 38,053,940 | 38,493,397 | 39,286,976 | 38,952,875 | 39,841,469 | 40,201,090 |
ANALYST RATINGS
Below is a summary of analyst ratings and forecasts for Hong Leong Bank as at 28 May 2026:
| Rating | Target Price |
EPS FY2026 (E) |
EPS FY2027 (E) |
DPS FY2026 (E) |
DPS FY2027 (E) |
Remarks | |
| Affin Hwang Investment Bank | Buy | 25.85 | 2.109 | 2.228 | 1.00 | 1.115 | |
| Maybank Investment Bank | Buy | 25.00 | 2.18 | 2.29 | 1.00 | 1.05 | |
| RHB Investment Bank | Buy | 24.70 | 2.14 | 2.26 | 0.99 | 1.05 | |
| UOB Kay Hian | Buy | 24.40 | 2.277 | 2.482 | 1.056 | 1.276 | |
| Average | 24.99 | 2.18 | 2.32 | 1.01 | 1.12 | ||
| *(E) = Estimate/Forecast | |||||||
Results Announcement Date: 27 February 2026 (Closing Share Price: RM23.28)
Below is a summary of analyst ratings and forecasts for Hong Leong Bank as at 28 February 2026:
| Rating | Target Price |
EPS FY2026 (E) |
EPS FY2027 (E) |
DPS FY2026 (E) |
DPS FY2027 (E) |
Remarks | |
| Affin Hwang Investment Bank | Buy | 28.28 | 2.109 | 2.245 | 1.00 | 1.115 | Target Price increased from RM24.00 |
| Maybank Investment Bank | Hold | 26.40 | 2.28 | 2.43 | 1.05 | 1.12 | Hold Rating upgraded to Buy. Target Price increased from RM22.80 |
| RHB Investment Bank | Buy | 25.7 | 2.2 | 2.31 | 1.01 | 1.07 | |
| UOB Kay Hian | |||||||
| Average | 26.79 | 2.20 | 2.33 | 1.02 | 1.10 | ||
| *(E) = Estimate/Forecast | |||||||
Results Announcement Date: 27 November 2025 (Closing Share Price: RM21.20)
Below is a summary of analyst ratings and forecasts for Hong Leong Bank as at 28 November 2025:
| Rating | Target Price |
EPS FY2026 (E) |
EPS FY2027 (E) |
DPS FY2026 (E) |
DPS FY2027 (E) |
Remarks | |
| Affin Hwang Investment Bank | Buy | 24.00 | 2.29 | 2.39 | 0.83 | 0.86 | |
| Maybank Investment Bank | Hold | 22.80 | 2.22 | 2.35 | 1.02 | 1.08 | Buy Rating downgraded to Hold. MIB is of the view that share price upside is limited based on its Target Price of RM22.80 for HLBANK. |
| RHB Investment Bank | Buy | 25.70 | 2.20 | 2.31 | 1.01 | 1.07 | |
| UOB Kay Hian | Buy | 23.80 | 2.31 | 2.52 | 1.14 | 1.37 | |
| Average | 24.08 | 2.25 | 2.39 | 1.00 | 1.09 | ||
| *(E) = Estimate/Forecast | |||||||
COMMENTARY
Hong Leong Bank Results Update FY2026Q2 (DECEMBER 2025)
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.
Hong Leong Bank Results Update FY2026Q1 (SEPTEMBER 2025)
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.