Hong Leong Bank group managing director and CEO Kevin Lam
KUALA LUMPUR: Hong Leong Bank Bhd
benefited from improved top- and bottomlines, underpinned by growth in net interest income and a surge in non-interest income, in the first half of its financial year (1HFY25).
During the six months period, Hong Leong Bank recorded a net profit of RM2.24bil, up from RM2.12bil, as revenue climbed to RM3.23bil from RM2.86bil.
Earnings per share rose to 109.18 sen from 103.34 sen in the previous corresponding period.
Group managing director and CEO Kevin Lam said the higher profit was supported by robust topline growth, solid asset quality and stable contribution from our associates.
"Correspondingly, this resulted in a commendable return on equity (ROE) of 11.9%," he said.
In the second quarter of FY25 (2QFY25), Hong Leong Bank posted a net profit of RM1.15bil, up from RM1.09bil, and revenue of RM1.63bil compared to RM1.46bil in 2QFY24.
The board of directors declared an interim divdend of 28 sen per share, with an entitlement date of March 13, 2025, and payable on March 26, 2025.
In 1HFY25, net interest income rose 8.3% year-on-year (y-o-y) to RM2.47bil, on strong loans/financing growth and effective funding cost management. Net interest margin improved six basis points y-o-y to 1.91%.
Meanwhile, non-interest income during the six months period surged 31.3% y-o-y to RM757mil on higher wealth management income and favourable gains from treasury activities and foreign exchange.
On balance sheet, the group's gross loans, advances and financing increased 7.7% y-o-y to RM199.4bil, due to expansion in the key segments of mortgage, auto loans, SME and commercial banking as well as key overseas markets.
Customer deposits in 1HFY25 rose 7.4% y-o-y to RM226.7bil, while current account savings account (Casa) maintained growth of 7.9% to RM71bil for a sustained Casa ratio of 31.3%.
Meanwjhile, Hong Leong Bank's parent company Hong Leong Financial Group Bhd (HLFG) said the group's positive performance in 1HFY25 was driven by the successful execution of its topline growth initiatives.
HLFG posted a 1HFY25 net profit of RM1.69bil, as compared to RM1.57bil in 1HFY24.
It reported revenue of RM3.75bil during the period under review as compared to RM3.27bil in the previous comparative period.
The group declared an all-cash interim dividend of 20 sen per share, with entitlement date on March 13 and payable on March 27, 2025.
