KUALA LUMPUR (Aug 27): Hong Leong Bank Bhd (KL:HLBANK) said on Thursday that its net profit grew more than 14% in its last quarter, thanks mostly to higher net income and write-backs of impairment losses.
These gains were partly offset by higher operating expenses, coupled with a decline in the share of profit from an associated company.
Malaysia’s fifth-largest banking group by assets’ earnings stood at RM1.24 billion for the three months ended June 30, 2026 (4QFY2026), compared with RM1.09 billion a year ago.
Revenue climbed to RM1.76 billion from RM1.62 billion, according to a bourse filing.
During the quarter under review, net interest income edged up 1.4%, while other operating income rose more than 38%.
Hong Leong declared a final single-tier dividend of 80 sen per share, up from 68 sen per share a year earlier, with the payment date to be announced later.
“We will continue to invest in our digital and AI capabilities, alongside strategic alliances that enhance our business strengths and broaden our offerings,” chief executive officer Kevin Lam said in a statement.
For the full financial year, net profit totalled RM4.53 billion, an increase of 6% from RM4.27 billion in the same period a year earlier.
Revenue grew to RM6.69 billion from RM6.39 billion a year ago.
Year-on-year, net interest income rose 4.6%. The net interest margin, which measures the difference between the interest earned on loans and the interest paid to depositors, remained stable at 1.84% as at end-June. Gross loans, advances and financing grew 7.7%.
Non-interest income grew 9.3%, thanks to an increase in wealth management activities and global markets franchise sales.
The gross impaired loan ratio — a measure of asset quality — came in at 0.57%.