Hong Leong Bank 1Q Net Profit Up Slightly To RM1.09 Bln

KUALA LUMPUR, Nov 27 (Bernama) -- Hong Leong Bank Bhd (HLB) reported a slightly higher net profit of RM1.09 billion for the first quarter ended Sept 30, 2025 (1Q) compared with RM1.089 billion recorded in the same period a year ago.

Revenue for the quarter under review rose to RM1.68 billion versus RM1.59 billion previously.

HLB group managing director and chief executive officer Kevin Lam said total income for 1Q increased 5.4 per cent year-on-year (y-o-y) to RM1.68 billion, underpinned by expansion in loans/financing portfolio and sustained non-interest income.

“Gross loans, advances and financing maintained their strong growth trajectory, rising 9.1 per cent y-o-y to RM211.8 billion. This was driven by expansion in our key segments -- mortgage, auto loans, Small and Medium Enterprises (SME), and commercial banking -- as well as in our key overseas markets,” he said in a statement.

Domestic loans/financing grew 9.0 per cent y-o-y, continuing to outperform the industry growth rate of 5.5 per cent y-o-y, while residential mortgages rose 6.4 per cent y-o-y to RM102.1 billion, supported by a healthy loans/financing pipeline, he added.

Meanwhile, transport vehicle loans/financing continues to deliver a double-digit growth rate of 11.4 per cent y-o-y to RM24.8 billion, benefitting from strategic partnerships with leading automotive brands and electric vehicle manufacturers, complemented by competitive financing packages.

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Loans to domestic business enterprises increased 5.7 per cent y-o-y to RM67.9 billion.

“Our commitment to the SME sector remains steadfast, with loans/financing to SMEs rising 8.7 per cent y-o-y to RM40.4 billion, including a 10.5 per cent y-o-y increase in our community SME banking portfolio.

“This is underpinned by our dedication to elevating customer experience, leveraging digital transformation and process innovation to deliver an enhanced range of financial solutions,” Lam said. 

Loans from overseas operations increased 10.1 per cent y-o-y, spearheaded by growth of 15.1 per cent and 6.2 per cent y-o-y in Singapore and Vietnam, respectively.

Customer deposits for 1Q rose 7.7 per cent y-o-y to RM236.3 billion.

Accordingly, CASA (current account savings account) notably improved by 9.1 per cent y-o-y to RM76.8 billion, which translates to a CASA ratio of 32.5 per cent.

“This performance was fuelled by a dedicated community deposit acquisition strategy and delivery of differentiated cash management solutions for our customers,” he added.

-- BERNAMA