KUALA LUMPUR (Aug 27): Hong Leong Financial Group Bhd (KL:HLFG) declared a dividend of 57 sen per share in conjunction with its announcement of nearly 11% growth in net profit to RM945.5 million for the fourth financial quarter ended June 30, 2026 (4QFY2026).
Quarterly revenue expanded 16% year-on-year to RM2.05 billion from RM1.76 billion, the financial services arm of the Hong Leong Group said in a bourse filing.
The single-tier dividend of 57 sen per share brought the financial group’s total dividend declared to 79 sen per share for the full FY2026. The payment date will be announced later.
Annual net profit increased 5.5% to RM3.43 billion from RM3.25 billion, in line with a 5.4% rise in annual revenue to RM7.6 billion from RM7.22 billion a year ago.
Gross loans, advances and financing grew 7.7% year-on-year to RM226.3 billion from RM210.1 billion, slightly slower than the 7.8% growth recorded in FY2025, driven by expansion in the mortgage, auto loans, small and medium enterprise, and commercial banking segments, as well as key overseas markets.
Domestic loans and financing expanded 7.1%, outpacing the industry growth rate of 5.5% year-on-year.
The net interest margin stood at 1.84% in FY2026, down from 1.90% the year before. The group's net interest income grew at a slower pace of 3.2% to RM5.09 billion compared with 5.5% in FY2025, despite the larger loans and financing base.
Non-interest income increased 9.3% year-on-year to about RM1.61 billion from RM1.47 billion, driven by higher wealth management activities and global markets franchise sales. However, the growth was significantly slower than the 33.5% increase recorded a year earlier.
Looking ahead, HLFG said it will remain vigilant through proactive risk management amid uncertainties arising from ongoing geopolitical conflicts in the Middle East and evolving protectionist trade policies.
The group said it will continue to strengthen its business franchises to adapt to the changing operating environment while pursuing new growth opportunities for sustainable expansion.
HLFG’s investment banking and fund management division, Hong Leong Capital Bhd (KL:HLCAP), also announced that quarterly net profit for 4QFY2026 increased by 6.7% to RM18.8 million from RM17.6 million, while revenue was largely flat at RM94.4 million.
It declared a dividend of 18 sen per share, down from 19 sen a year earlier, with the payment date to be announced in due course.
For FY2026, annual net profit climbed 12% year-on-year to RM65.6 million from RM58.4 million, while revenue edged up 0.8% to RM351.3 million from RM348.4 million.
At Thursday’s noon break, shares of HLFG added four sen to RM18.78, giving it a market capitalisation of RM21.6 billion.
Hong Leong Capital was down one sen or 0.3% at RM3.13, valuing it at RM772.8 million.