KUALA LUMPUR: Hong Leong Financial Group Bhd’s net profit for the second quarter ended Dec 31, 2025, rose to RM899.2 million from RM839.5 million a year earlier, mainly due to higher net income and lower operating expenses.
Its revenue for the quarter increased to RM1.92 billion from RM1.86 billion previously.
In a filing with Bursa Malaysia, the financial services conglomerate company said for the first half of the financial year ending June 30, 2026, the group recorded a net profit of RM1.74 billion compared with RM1.69 billion a year earlier, while revenue rose to RM3.86 billion from RM3.75 billion.
It also has declared an interim single-tier dividend of 22.0 sen per share for the financial year ending June 30, 2026.
Meanwhile, Hong Leong Financial’s major subsidiary Hong Leong Bank Bhd (HLB) also posted a higher net profit for 2Q FY26 of RM1.17 billion from RM1.15 billion in the previous year, while revenue rose to RM1.67 billion from RM1.63 billion previously.
HLB, which focuses on banking services said its 1H FY26 performance also posted a higher net profit of RM2.26 billion from RM2.24 billion a year ago, while revenue was also firmer at RM3.35 billion from RM3.23 billion previously.
Its group managing director and chief executive officer Kevin Lam said Hong Leong Bank has entered the second half of the financial year with sustained momentum, driven by the disciplined execution of its ‘3-5 Year Transformative Plan’.
“As our operating profit before associate contribution grew 5.6 per cent year-on-year (y-o-y) to RM2.075 billion driven by robust loans and financing growth, expansion in non-interest income contribution, effective cost management and solid asset quality.
“Gross loans/financing demonstrated robust expansion, with an 8.2 per cent y-o-y growth to RM215.7 billion, supported by our mortgage, auto loans, small and medium-sized enterprises, and commercial banking segments, as well as key overseas markets,” he said.
Upholding the bank’s stringent credit underwriting standards, Lam said Hong Leong Bank would continue to maintain a solid gross impaired loans ratio of 0.59 per cent ensuring that it remains well positioned to navigate future uncertainties while delivering value to its stakeholders.
The board has declared an interim dividend of 30 sen per share for 1H FY26.
Looking ahead, Lam said that on the bank’s journey to become the Best Run Bank in Malaysia, it continues to make significant strides in its ‘3-5 Year Transformative Plan’, driving business performance and sustainable returns for all stakeholders.
“Our strategic focus remains centered on providing innovative, customer-centric solutions that meet the banking and lending needs of our customers, and engaging all of HLB bankers to be thoughtful and responsible in every single customer interaction.
“To capitalise on growth opportunities within this dynamic business environment, the bank continues to bolster its capabilities by solidifying our core business, reimagining and transforming our branches, deepening strategic alliances and scaling artificial intelligence and digital capabilities,” he added.
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