Hong Leong Financial Group Bhd. · MYX:HLFG
Hong Leong Financial Group Bhd — FY2026 Earnings Presentation
27 slides from Hong Leong Financial Group Bhd's earnings presentation, Aug 27, 2026
Slide 1: FY2026 Results Analyst Presentation
FY2026 Results Analyst Presentation 27 August 2026 The information contained in this presentation is strictly confidential for information of the intended recipient(s) only. The information may not be reproduced, redistributed or transmitted, directly or indirectly by any means to any other person o
Slide 2: Record-High PBT and Dividend
Record-High PBT and Dividend HLFG PBT Record high PBT RM’ bil Insurance and Takaful 12% 6.10 6.31 Commercial Banking FY2026: 5.85 RM6.31 bil (vs FY25:11%) 5.25 87% 4.84 (vs FY25: 88%) 3.4% YoY 3.97 Investment Banking & Fund Management 1% (vs FY25: 1%) FY2026 PBT YoY (RM’ Mil) (%) FY21 FY22 FY23 FY24
Slide 3: Business Focus: Commercial Banking
Business Focus To be the “Best-Run” bank in Malaysia Commercial Banking: Hong Leong Bank Brand Refresh and Branch Transformation • Launch new brand identity for HLB • Refreshed 4 Next-generation branches, which serve as a one stop Private Bank, HLB Priority and shop for HLFG offerings HLB Islamic •
Slide 4: Business Focus: Life & Family Takaful and General Insurance
Business Focus Trust, Legacy and Dedication Life & Family Takaful and General Insurance Strengthened Unique Value Proposition and Refreshing Brand Identity PRODUCT DISTRIBUTION Product Innovation Enhancing Agency recruitment & productivity • HLA Legacy Wealth: legacy planning product for high-net- •
Slide 5: Business Focus: Investment Banking and Asset Management
Business Focus Full-suite of trading & investment solutions Investment Banking Asset Management Deepening HLB partnership Product Innovation and Development • Stockbroking to penetrate the affluent and SME segment • To continue expanding strategic partnership funds with via collaboration with HLB gl
Slide 6: Financial Highlights: FY2026
Financial Highlights: FY2026 Hong Leong Financial Group Berhad 6
Slide 7: Performance Highlights
Performance Highlights FY26 PATAMI improvement from higher topline and prudent cost management RM’ Mil 3.4% YoY 161 226 6.2% YoY 9 (Normalised (88) (38) (64) basis) 6,103 6,112 6,308 FY25 PBT One-off items from FY25 PBT Net Interest Non Interest Opex Impairment Profit before Associates FY26 PBT prio
Slide 8: Net Interest Income & Non-Interest Income
Net Interest Income & Non-Interest Income Higher NoII ratio of 32.2% supported by improved insurance contribution and fee income Operating Income Breakdown (RM’ Mil) Change % 7,603 RM’ mil FY25 FY26 7,217 (YoY) 2,221 2,447 Net Interest Income 4,995 5,156 3.2% NOII 4,995 5,156 Non-Interest Income 2,2
Slide 9: Operating Expense
Operating Expense FY26 CIR improved by 140 bps on positive JAWS to 35.1%, one of the lowest in the industry (RM’ Mil) Administration and general 15% 36.5% 35.1% Marketing 9% FY26 OPEX: RM2.67 bil Personnel 56% Establishment 20% Change % 2,671 RM’ mil FY25 FY26 2,633 (YoY) Personnel 1,451 1,497 3.2%
Slide 10: Asset Quality
Asset Quality Solid asset quality with a stable GIL ratio and coverage ratio Credit Cost (Bps) 10 6 4 1 -6 FY22 FY23 FY24 FY25 FY26 Gross Impaired Loans Ratio (Bps) 59 60 57 57 54 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Loans/Financing Impairment Coverage (LIC) (%) 259.3% 244.4% 241.0% 238.3% 245.3% LIC
Slide 11: Liquidity & Capital
Liquidity & Capital Capital and liquidity remains sound and above regulatory thresholds Capital Adequacy (%) 14.6% 14.0% 14.6% CAR 12.7% 12.7% 12.1% Tier 1 11.8% 11.1% 11.8% CET1 Jun-25 Mar-26 Jun-26 Note: ` Capital base & ratio after final dividends Liquidity Ratios (%) Loan-to-Deposit Ratio 87.0%
Slide 12: Shareholder Value
Shareholder Value Record High FY26 PATAMI of RM3.43 billion with a commendable ROE of 10.3% PATAMI & ROE Book Value Per Share RM ’BIL RM 11.1% 11.2% 10.4% 10.5% 10.3% 30.6 28.3 3.43 26.5 3.25 24.0 3.20 21.4 2.88 2.45 FY22 FY23 FY24 FY25 FY26 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 PATAMI Avg ROE Hong Leo
Slide 13: Commercial Banking: Hong Leong Bank
Commercial Banking: Hong Leong Bank Improved performance driven by robust loan growth, stronger NoII contributions and prudent cost management Change % Change % Income Statement (RM’ mil) FY25 FY26 Key Operating Ratios FY25 FY26 (YoY) (bps) Net Interest Income 4,927 5,086 3.2% Profitability & Effici
Slide 14: Insurance & Takaful: HLA Holdings
Insurance & Takaful: HLA Holdings 11.3% YoY PBT growth driven by Family Takaful and General Insurance Change % Income Statement (RM’ mil) FY2025 FY2026 (YoY) Life Insurance & General Net insurance service results 267 299 12.1% Family Takaful, PBT FY2026* Insurance, 83% of PBT RM743 mil 17% of PBT Ne
Slide 15: Life Insurance & Family Takaful (MFRS 17)
Life Insurance & Family Takaful (MFRS 17) HLA and HLMT CSM +4.2% YoY from new business additions outpacing CSM release HLA & HLMT Contractual Service Margin (Jun-25 to Jun-26) RM’ mil 223 16 (161) 5 1,764 1,838 CSM as at Jun-25 New Business CSM CSM Release Expected Growth Economic and non- CSM as at
Slide 16: Embedded Value
Embedded Value HLA & HLMT EV has expanded to RM5.05 bil with a CAGR growth of 9.0% over the past 5 years Combined HLA & HLMT Embedded Value RM’ mil +5.8% • HLA embedded value continues expanded by 5.5% YoY, mainly driven by positive contributions 5,053 from new business and profits generated from in
Slide 17: Life Insurance & Family Takaful
Life Insurance & Family Takaful Gross premiums flat from stronger renewals, offset by lower new business premiums/contributions Gross Premiums & Contributions: Segment* Gross Premium & Contributions: Mix* Gross Premiums & Contributions channel mix* RM’ mil RM’ mil RM’ mil 0.7% YoY 0.7% YoY 0.4% YoY
Slide 18: Life Insurance & Family Takaful
Life Insurance & Family Takaful Pivot for higher protection mix on-track; Holistic efforts to improve agency recruitment and productivity HLA Annualised Premiums: Protection & Saving Mix Combined* No. of Agents 35% 41% Protection Saving 65% 14,835 59% 11,698 FY25 FY26 HLA Average Case Size FY25 FY26
Slide 19: Investment Banking: HLCB
Investment Banking: HLCB 8.8% YoY PBT driven by stronger Fund management income and higher returns from equity investments Change % Asset Management HLCB average ROE RM’ mil FY25 FY26 (YoY) Average AUM (RM’ bil) (%) Net Interest Income 64 57 (10.6%) Non-Interest Income 153 170 11.2% Total income 217
Slide 20: Closing Remarks
Closing Remarks Hong Leong Financial Group Berhad 20
Slide 21: Closing Remarks
Closing Remarks • HLFG improved PATAMI by +5.5% YoY, driven by topline growth, stringent cost controls and solid asset quality. • Global economic conditions remain uncertain, largely driven by ongoing geopolitical strife and persistent US trade protectionism. While Malaysia’s export-oriented economy
Slide 22: Supplementary Information
Supplementary Information Hong Leong Financial Group Berhad 22
Slide 23: Key Financial Summary
Key Financial Summary Change % Change % RM’ mil FY25 FY26 3Q FY26 4Q FY26 (YoY) (QoQ) Net Interest Income 4,995 5,156 3.2% 1,273 1,312 3.0% Non-Interest Income 2,221 2,447 10.2% 421 739 75.8% Total income 7,217 7,603 5.4% 1,694 2,051 21.1% Operating expenses (2,633) (2,671) 1.5% (667) (722) 8.3% Ope
Slide 24: Key Financial Summary
Key Financial Summary (%) FY25 FY26 YoY 3Q FY26 4Q FY26 QoQ Profitability Return on Average Equity (ROE) 10.5% 10.3% 8.9% 10.9% Non-interest income / total income 30.8% 32.2% 24.8% 36.0% Cost-to-income Ratio 36.5% 35.1% 39.4% 35.2% Asset Quality LIC (excl. Reg. Reserves) 96.9% 79.6% 81.1% 79.6% LIC
Slide 25: HLFG Corporate Structure
HLFG Corporate Structure Financial services holding co. *65.5% 100% *73.7% Hong Leong Bank HLA Holdings Hong Leong Capital Commercial banking Insurance holding co. Investment holding 100% 70% 100% Hong Leong Islamic Bank Hong Leong Assurance Hong Leong Investment Bank Islamic banking Life insurance
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by Hong Leong Financial Group (“HLFG”) for selected recipients for information purposes only. The information contained herein is believed to be correct as of the date of this presentation and is given in summary form and does not purport to be complete
Slide 27: THANK YOU
THANK YOU Hong Leong Financial Group Berhad 27
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