Hong Leong Bank group managing director and CEO Kevin Lam.
PETALING JAYA: Hong Leong Financial Group Bhd
’s commercial banking division, Hong Leong Bank Bhd’s net profit after tax for the first quarter ended Sept 30, 2024 (1Q25) improved 5.8% year-on-year (y-o-y) to RM1.1bil underpinned by robust loans and financing growth, improved non-interest income and stable contributions from its associates.
Additionally, Hong Leong Bank’s gross loans and financing portfolio grew 6.9% y-o-y to RM194.2bil, contributed by expansion in its mortgage, auto loans, small and medium enterprises (SMEs) and commercial banking segments.
Hong Leong Bank Bhd group managing director and chief executive officer Kevin Lam said the steadfast execution of its three- to five-year strategic plan led to growth in its core businesses, giving rise to a set of encouraging results in the first quarter.
“This was supported by continued loans and financing expansion, sound current accounts-savings account (CASA) ratio, strong asset quality, along with prudent funding and liquidity positions,” he said in a statement yesterday.
Meanwhile, Hong Leong Financial Group Bhd continues to remain upbeat on its prospects which will be supported by its strong brand, cost discipline and asset quality management measures.
For 1Q25, the banking group’s net profit rose by 14% y-o-y to RM847.7mil, driven by improved commercial banking and insurance performance.
This translates to an earnings per share of 74.70 sen for the group in 1Q25 from 65.40 sen in 1Q24. Hong Leong Financial Group’s improved net profit was also in line with the group’s higher revenue, which grew by 20% y-o-y to RM1.9bil.
Hong Leong Financial Group president and chief executive Tan Kong Khoon said the group anticipates Malaysia’s positive economic momentum will carry into 2025, but are mindful of downside risk and external headwinds stemming from evolving geopolitical and trade tensions between major economies.
“Overall, Hong Leong Financial Group is well positioned to capture economic growth and deliver sustainable value creation for our stakeholders through enhancing our digital capabilities, expanding our suite of products and delivering customer-centric solutions.”
“We will also continue to uphold our sound loan monitoring and management of credit risk, while exercising prudent cost control and investment in operational resiliency and digital capabilities across the group,” he said.
The banking group’s investment banking and asset management division, Hong Leong Capital Bhd registered a net profit after tax of RM16.5mil for 1Q25, compared to corresponding period in the previous year of RM22.7mil.
The group noted that it was primarily impacted by lower income from investment banking and asset management, as well as lower equity investment returns.
Meanwhile, Tan, who is also chairman for Hong Leong Capital Bhd, said the group posted a respectable 1Q25 performance in light of the volatile capital market conditions, which resulted in lower equity investment gains and the delay in completion of customer mandates in the pipeline.
“Nonetheless, we are encouraged to see continued improvement in stockbroking performance in line with higher trading volumes on the local bourse,” he said.
