Hong Leong Bank Berhad (HLB) announced its financial results for the financial year ended June 30, 2026 (FY2026), recording a 6.0 percent year-on-year increase in profit after tax to RM4.53 billion.
Driven by solid growth in gross loans and strong expansion in current account savings account (CASA) deposits, the board declared a higher final dividend of 80 sen per share.
Total income for the year grew 4.6 percent year-on-year to RM6.69 billion. Net interest margin (NIM) was managed at 1.84 percent, supported by loan expansion and strategic funding cost management.
Non-interest income surged 9.3 percent year-on-year, driven by wealth management scaling and global markets sales, raising the non-interest income ratio to 24.0 percent. Continued efficiency initiatives and artificial intelligence integration helped achieve positive JAWS and a cost-to-income ratio (CIR) of 37.6 percent.
Operating profit before allowances rose 6.6 percent to RM4.18 billion, while profit before tax grew 2.2 percent to RM5.48 billion. The moderation in profit before tax growth was attributable to lower profit contributions from associated company Bank of Chengdu Co., Ltd (BOCD) following the natural dilution of HLB’s stake upon convertible bond conversions, as well as foreign exchange translation impacts from a stronger Ringgit.
Gross loans, advances, and financing expanded 7.7 percent year-on-year to RM226.3 billion. Domestic loans grew 7.1 percent, outpacing the national industry growth rate of 5.5 percent.
Customer deposits expanded 5.5 percent year-on-year to RM252.1 billion. CASA deposits grew at a faster pace of 11.3 percent to RM87.4 billion, elevating the CASA ratio to 34.7 percent. Individual deposits reached RM125.9 billion (+3.4 percent YoY), forming 49.9 percent of the total deposit mix.
