KUALA LUMPUR (Feb 26): Hong Leong Financial Group Bhd’s (KL:HLFG) net profit was nearly flat year-on-year (y-o-y) at RM839.46 million for the second quarter ended Dec 31, 2024 (2QFY2025), versus RM831.87 million a year ago. 

Quarterly revenue grew 9.29% y-o-y to RM1.86 billion, compared with RM1.70 billion previously, according to its bourse filing. HLFG declared an interim dividend of 20 sen per share, payable on March 27.

Higher net interest income and stronger contributions helped to sustain its quarterly earnings. The financial group saw good growth in non-interest income (NOI).

"A key highlight was the group's NOI performance, which increased by 30.4% y-o-y, and saw HLFG’s NOI ratio improving to 32.7%, placing us within the top quartile of the industry. Disciplined management of asset quality, capital, and liquidity also contributed to the group's positive results," said HLFG president & chief executive officer Tan Kong Khoon in a statement, in conjunction with the release of its quarterly earnings. 

For 1HFY2025, the group’s net profit increased 7.22% y-o-y to RM1.69 billion, from RM1.57 billion, driven by improved performance in commercial banking and insurance. Total revenue expanded 14.5% to RM3.75 billion, from RM3.27 billion.

Notably, the group's insurance arm, HLA Holding Sdn Bhd’s pre-tax profit grew by almost 29% y-o-y, thanks to higher net insurance service results and stronger investment income.

As for Hong Leong Capital Bhd (KL:HLCAP), the investment banking and asset management arm of the Hong Leong group’s pre-tax profit fell 12% y-o-y, due to delays in the completion of mandated deals, lower investment gains, and asset management income.

At the time of writing on Wednesday, HLFG shares were up two sen, valuing the group at RM20.95 billion.

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