Hong Leong Bank Announces H1FY26 Results

Kuala Lumpur, 27 February 2026 - Hong Leong Bank Berhad (“Bank” or “HLB”), (BM: HLBANK) today announced its results for the six months ended 31 December 2025 (“H1FY26”). 

• Operating profit before associate contribution for H1FY26 improved 5.6% year-on-year (“y-o-y”) to RM2,075 million. 

• Non-interest income expanded 7.5% y-o-y to RM814 million, contributing to a robust non-interest income ratio of 24.3%.

• Gross loans/financing maintained its strong growth trajectory, growing 8.2% y-o-y to RM215.7 billion. 

• Asset quality position remained solid as reflected in a gross impaired loan (“GIL”) ratio of 0.59%.

• CASA continued to gain traction, increasing 12.1% y-o-y to RM79.6 billion, with CASA ratio uplifted to 32.9%. 

 

Kevin Lam, Group Managing Director and Chief Executive Officer of HLB commented,
“We have entered the second half of the financial year with sustained momentum, driven by the disciplined execution of our 3-5 Year Transformative Plan. I am pleased to announce a resilient H1FY26 performance despite persistent external headwinds, as our operating profit before associate contribution grew 5.6% y-o-y to RM2,075 million driven by robust loans/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% y-o-y growth to RM215.7 billion, supported by our mortgage, auto loans, SME and commercial banking segments, as well as key overseas markets. Upholding the Bank’s stringent credit underwriting standards, we continued to maintain a solid GIL ratio of 0.59% ensuring we remain well-positioned to navigate future uncertainties while delivering value to our stakeholders.”

 

Resilient Business Performance

• Total income for H1FY26 was recorded at RM3,352 million, representing a 3.8% y-o-y increase. This growth was fuelled by expansion in loans/financing portfolio with net interest margin (“NIM”) being prudently managed at 1.83%. Non-interest income also contributed to the growth, expanding 7.5% y-o-y, supported by solid performance in wealth management business and global markets franchise sales.

• Profit after tax was RM2,260 million, with growth of 1.0% y-o-y. This moderation in growth rate was attributable to lower profit contribution from associated company, Bank of Chengdu Co., Ltd (“BOCD”) following the natural dilution of the Bank’s stake in BOCD with the completion of its convertible bonds’ conversion, alongside FX translation impact from a stronger ringgit.

   

Strong Growth Trajectory in Loans/Financing

• Gross loans, advances and financing continued to record strong growth of 8.2%
  y-o-y to RM215.7 billion, underpinned by expansion in our key segments of mortgage, auto loans, SME and commercial banking, as well as key overseas markets.

• Domestic loans/financing growth of 8.3% y-o-y has consistently outperformed the industry growth rate of 4.9% y-o-y.

• Residential mortgages grew 6.2% y-o-y to RM103.8 billion, backed by a healthy loans/financing pipeline. Notably, transport vehicle loans/financing carried its strong momentum forward, delivering 10.8% y-o-y growth to RM25.4 billion. The Bank further strengthened its position in this segment by expanding dealer coverage and leveraging strategic partnerships with leading automotive brands and electric vehicle manufacturers.

• Loans to domestic business enterprises expanded 7.3% y-o-y to RM69.8 billion. Fuelled by proactive customer acquisition efforts and continuous engagements, loans/financing to SMEs increased 8.3% y-o-y to RM41.4 billion, while our community SME banking portfolio grew favourably by 11.1% y-o-y to RM15.9 billion. Our strategic focus remained centered on leveraging digital capabilities to deliver tailored financial solutions that enhance customer experience.

• Loans from overseas operations rose 6.3% y-o-y, led by key markets of Singapore and Vietnam, which saw local currency growth of 17.2% y-o-y and 13.3% y-o-y respectively.

   

Solid Funding and Liquidity Positions

• The Bank remains prudent in managing its funding and liquidity positions, with loans to deposits ratio (“LDR”) of 87.7% as at 31 December 2025, while rolling 12 months average liquidity coverage ratio (“LCR”) stood at 130.6%, comfortably above regulatory requirements.

• Customer deposits for H1FY26 grew 6.8% y-o-y to RM242.0 billion and CASA saw an encouraging improvement of 12.1% y-o-y to RM79.6 billion. Accordingly, CASA ratio was further strengthened to 32.9%, supported by the Bank’s community acquisition initiatives and the delivery of effective cash management solutions. 

• The Bank’s funding base remained stable, with individual deposit making up 49.5% of the total deposits. This individual deposit portfolio was up 4.5% y-o-y to RM119.8 billion as of 31 December 2025.

   

Asset Quality and Capital Positions Remained Prudent

• The Bank maintained a solid asset quality position with a GIL ratio of 0.59%. 

• Loan impairment coverage (“LIC”) ratio stood at 83.7% as at 31 December 2025. Inclusive of the value of securities held on our GIL, the Bank’s LIC ratio is well-maintained at 153.7%, whilst with regulatory reserve, the coverage ratio is higher at 239.8%. 

• The Bank’s capital position remained healthy with CET 1, Tier 1 and Total Capital ratios at 12.6%, 13.5% and 15.6% respectively as at 31 December 2025.

   

Dividend

• The Board has declared an interim dividend of 30.0 sen per share for H1FY26. 

   

Reimagining Islamic Banking through the Lens of Wealth Management

• In celebration of its 20th Anniversary, Hong Leong Islamic Bank (“HLISB”) has unveiled a refreshed proposition, “Timeless Principles Guiding Tomorrow’s Wealth”, reimagining Islamic banking through the lens of wealth management. 

• To deliver on this, HLISB has aligned its offerings with the five pillars of Islamic Wealth Management, namely Wealth Creation, Wealth Accumulation, Wealth Preservation, Wealth Purification, and Wealth Distribution. HLISB has also launched HLB@CAMPUS, offering student-focused banking solutions alongside financial literacy workshops and a student ambassador program to prepare the next generation for responsible wealth creation.

   

Empowering Vietnamese MSMEs with Business Management Tools

• Hong Leong Bank Vietnam (“HLBVN”) has entered a strategic partnership with So Ban Hang, Vietnam’s leading business management app, to assist Vietnamese entrepreneurs and MSMEs with business management and preparation for upcoming tax reforms.

• As part of this partnership, customers can access essential features such as HLB account opening, tax compliant QR payments, automatic record-keeping, and instant e-invoice issuances directly within the So Ban Hang app. This integrated solution is designed to streamline workflows, improve business efficiencies, and ensure entrepreneurs are fully compliant with the new tax reforms scheduled for implementation early next year.

   

Business Outlook

Kevin Lam commented, “The Malaysian economy is resilient despite prevailing uncertainties on the global front mainly from potential lagged tariff impact and ongoing trade and geopolitical tensions. Growth will nonetheless be supported by earlier policy easing and pro-growth measures as well as improved governance to ensure growth sustainability. Malaysia’s well-diversified economic structure, sustained private consumption and quicker realisation of investment projects will remain the primary growth engines, with added boost from Visit Malaysia Year 2026. Momentum will be further amplified as 2026 marks the inaugural year of the 13th Malaysia Plan with the implementation of initiatives on Artificial Intelligence (“AI”), digital and green technology. These factors are expected to keep the Malaysian economy on track to achieve its official growth forecast of 4.0% to 4.5% for 2026.

 

In our journey to become the Best Run Bank in Malaysia, we continue to make significant strides in our 3-5 Year Transformative Plan, driving business performance and sustainable returns for all stakeholders. To bring our brand promise of “Built Around You” to the next level, we are revitalising the HLB brand through an “inside out” campaign that empowers our HLB Bankers to truly “Live the HLB Brand”. 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 AI and digital capabilities. On the environmental, social and governance (“ESG”) front, the Bank remains committed to integrating ESG principles across our strategies and operations to create a positive and lasting impact for all stakeholders.”