KUALA LUMPUR (May 26): Hong Leong Bank Bhd (KL:HLBANK) said on Tuesday its net profit grew nearly 9% in the recently-ended quarter thanks mostly to lower taxation and interest income.
Net profit at Malaysia's fifth largest banking group by assets was RM1.03 billion for the three months ended March 31, 2026 (3QFY2026), compared with RM946.7 million in the same quarter a year earlier. Net interest income edged up 5% while non-interest income fell close to 9%, according to its bourse filing.
“The bank’s priority remains strengthening our core operations through the transformation of our branch network, deepening strategic alliances and stepping up AI and digital capabilities,” said chief executive officer Kevin Lam.
No interim dividend was declared for the quarter.
Hong Leong Bank, the flagship commercial bank of tycoon Tan Sri Quek Leng Chan, is targeting a return on equity of 11.5%-12.0% for the full financial year. The bank is also looking to expand its gross loans by 6.0% to 7.0% while net interest margin would come in between 1.80% and 1.90%.
The company met all of its guidance except return-on-equity, achieving only 11% at the end of March.
In the first nine months of its financial year, net profit totalled RM3.29 billion, an increase of 3.3% when compared to the same period a year earlier when the company booked a dilution loss of nearly RM408 million following conversion of bonds issued by associate Bank of Chengdu Co Ltd.
Year-on-year, net interest income rose 3.5%. Net interest margin, which measures the difference between the interest earned on loans and the interest paid out to depositors, stable at 1.83% at the end of March. Gross loans, advances and financing grew 8.4%.
Non-interest income edged up 2.2% thanks to an increase in wealth management activities and global markets franchise sales.
Gross impaired loan — the proportion of bad debts as a percentage of its total loans and a measure of asset quality — came in at 0.6%.