KUALA LUMPUR (Aug 27): Hong Leong Financial Group Bhd (KL:HLFG) closed its fiscal year with record-high earnings driven by commercial banking and insurance businesses.
Net profit for the financial year ended June 30, 2025 (FY2025) rose 1.8% to RM3.25 billion, or 286.9 sen per share, according to an exchange filing. Year-on-year, net interest income grew 3.4% to RM4.06 billion while non-interest income rose nearly 15% to RM2 billion from a year earlier.
The company, the financial services arm of tycoon Tan Sri Quek Leng Chan's business empire, also declared a final dividend of 52 sen per share, lifting the total dividend for the year to 72 sen from 54 sen in FY2024.
“In this rapidly evolving macroeconomic environment, Hong Leong Financial Group remains vigilant to mitigate potential risks and capitalise on emerging opportunities” while maintaining sound liquidity, robust asset quality, and strong capital levels, the company said.
Hong Leong Financial Group derives most of its earnings from its commercial banking arm Hong Leong Bank Bhd (KL:HLBANK). The company also runs investment banking and asset management under Hong Leong Capital Bhd (KL:HLCAP) as well as insurance under unlisted HLA Holdings Sdn Bhd.
Both Hong Leong Bank and Hong Leong Capital also announced their results on Wednesday. At HLA Holdings, profit before tax rose over 10% to RM667 million in FY2025, lifted by stronger life and family takaful service results and higher overseas contributions.
Its general insurance subsidiaries in Singapore and Hong Kong together nearly doubled their profit before tax from a year earlier thanks to paper gains from their equities investments and gross premium growth.
For the final three months (4QFY2025), net profit amounted to RM853.45 million, a 5.9% increase when compared to the same quarter last year. Net interest income for the quarter improved 5.8% year-on-year on sustained loan and financing growth and stable funding costs.
Non-interest income jumped 34.1% year-on-year during the quarter driven by wealth management, treasury and foreign exchange gains.
“Looking ahead, Hong Leong Financial Group is committed to unlocking further synergies across the group’s integrated financial ecosystem, enabling us to not only acquire new customers but also enhance customer value through targeted cross-selling and up-selling,” said chief executive officer Tan Kong Khoon.
Shares of Hong Leong Financial Group settled up four sen or 0.24% at RM16.84 at Wednesday's noon break, valuing the financial services firm at RM19.32 billion before the results announcement.