Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — FY2026 Earnings Presentation
28 slides from Hong Leong Bank Bhd's earnings presentation, Aug 27, 2026
Slide 1: FY2026 Results Analysis Presentation
FY2026 RESULTS ANALYSIS 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
Slide 2: GMD/CEO Opening
HONG KONG VIETNAM GMD/CEO OPENING MALAYSIA SINGAPORE
Slide 3: CEO Message: Resilient Topline Expansion and Growth Engines
CEO Message 1 Resilient and Sustained Topline Expansion 2 Growth Engines Continued to Scale Encouraging performance in loans/financing growth and expanding NoII Delivering broad-based expansion across core pillars contribution Key growth areas: Operating Profit Total Income LOANS/FINANCING Before Al
Slide 4: CEO Message: Solid Balance Sheet and Higher Dividend
CEO Message 3 Solid Balance Sheet Strong financial position to navigate through headwinds 4 Higher Dividend Improved dividend payout ratio to >50%, rewarding shareholders for loyalty and support CASA Gross Impaired Loan (GIL) 34.7% 0.57% Declared Dividend TOTAL DIVIDEND 32.9% 0.54% RM’bil 78.5 11.3%
Slide 5: Management Guidance
Management Guidance Target FY2026 Achieved FY2026 Gross Loans Growth 6.0%-7.0% 7.7% P Commendable delivery across Net Interest Margin 1.80%-1.90% 1.84% P core targets through balanced Cost-to-Income Ratio ~39.0% 37.6% P approach, navigating GIL Ratio <0.65% 0.57% P uncertainty with domestic agility
Slide 6: Financial Highlights
2 FINANCIAL HIGHLIGHTS 6
Slide 7: Profit & Loss
Profit & Loss RM’mil 5.0% 137 4,100 ▲ y-o-y 3,903 158 35 64 Pre-BOCD Profit Net Interest Non Interest Opex Impairment & Pre-BOCD Profit Resilient core FY2025 (normalised) Income Income write back FY2026 franchise RM’mil FY2025 FY2026 Change % (YoY) Q4FY26 Change % (YoY) performance Total income 6,39
Slide 8: Net Interest Income & NIM
Net Interest Income & NIM 1.90% 1.90% 1.84% 1.84% 1.85% 1.84% 1.83% 1 bp 6 bps ▲ ▲ q-o-q y-o-y 5,086 Proactive 4,927 ▲ 3.2% y-o-y management RM’mil yields sequential 1,293 ▲ 3.0% 1,274 quarterly NIM 1,264 1,264 1,255 q-o-q recovery Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 FY2025 FY2026 Net interest income
Slide 9: Non-Interest Income
Non-Interest Income 24.0% 23.0% FY2026 Wealth 1,608 ▲ 9.3% Management and ▲ 19.9% RM’mil 1,471 y-o-y 252 Bancassurance RM378.6 mil Higher NoII 262 Income contribution 540 driven by strong 489 selected GM Franchise ▲ 18.5% traction across indicators: Sales Income RM497.9 mil key growth drivers 816 72
Slide 10: Operating Expense
Operating Expense 37.1% 35.6% Domestic CIR Composition of Operating Expenses 38.7% 37.6% AI-driven productivity gains RM’mil 2,479 2,514 Admin & general and strategic cost 384 386 15% Personnel cost management 238 233 Marketing 55% translate to 524 516 9% operational FY2026 efficiency and improved C
Slide 11: Loans & Financing
Loans & Financing +4,206 +2,415 +9,575 7.7% (+7.0%) (+16.4%) 226,288 ▲ y-o-y RM’mil (+7.1%) 210,064 Strong loans/financing Total Loans as at Retail Business & Corporate International Total Loans as at growth trajectory Jun 2025 Operations Jun 2026 alongside FY2026 continuous Residential Domestic ▲ 6
Slide 12: Asset Quality
Asset Quality Gross Impaired Loans/Financing (GIL) Loans/Financing Impairment Coverage (LIC) 1.37% 1.39% 1.43% 240% 237% 244% Upholding sound 0.59% 0.60% 0.57% asset quality 154% 151% 150% metrics amidst an uncertain RM’mil 1,276 1,315 1,299 operating environment 84% 81% 80% Q2FY26 Q3FY26 Q4FY26 Q2F
Slide 13: Asset Quality
Asset Quality Malaysia Industry GIL: 1.43% Overseas (+4bps q-o-q) 0.50% 0.52% 0.50% 1.76% 1.72% 1.47% 1,011 1,046 1,047 265 268 252 Q2FY26 Q3FY26 Q4FY26 Q2FY26 Q3FY26 Q4FY26 Healthy asset quality ratios across key Industry GIL: Residential Properties Industry GIL: Transport Vehicles Industry GIL: SM
Slide 14: Deposit
Deposit +3,340 +8,859 +939 252,064 5.5% ▲ y-o-y (+9.2%) (+11.3%) (+0.8%) RM’mil 238,926 Robust CASA expansion underpinned by active community Total Deposits as at CASA Fixed Deposit Market Deposit Total Deposits deposit Jun 2025 as at Jun 2026 acquisition and innovative FY2026 transaction CASA Ratio
Slide 15: Liquidity & Capital
Liquidity & Capital Liquidity Ratios Capital Adequacy^ 133% 133% 131% 129% 127% 120% 120% 117% 118% 118% Liquidity and 16.3% 15.7% 15.6% 15.4% 16.2% capital position 14.2% 13.6% 13.5% 13.8% 13.3% prudently Average LDR of managed at ?? top 5 domestic banks Mar’26: 93.1% healthy levels 88.7% 88.1% 87.
Slide 16: Shareholder Value
Shareholder Value Return on Equity, Return on Assets and EPS Declared Dividend • Resilient 11.8% 11.8% 11.2% 11.2% 47% 50% financial performance 34% 110 32% on the back of 1.43% 1.45% 1.40% 1.41% 96 robust fundamentals 68 80 221 59 68 205 208 • Deliver 186 progressive 38 43 improvements in dividend
Slide 17: Performance of Associated Company: Bank of Chengdu
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for H1 ended 30 June 2026 (unaudited) Operating Income Profit After Tax Robust ROE 15.0% RMB'mil RMB'mil 12,270 4% 12,776 6,617 4% 6,905 Solid Cost-to- 23.9% income Ratio H1FY25 H1FY26 H1FY25 H1FY26 Gross Loan GIL rati
Slide 18: Closing Remarks
3 CLOSING REMARKS 18
Slide 19: Wealth Management Capabilities and Recognition
Wealth Management Capabilities and Recognition Financial Milestones Value Propositions Awards & Accolades Global Private Markets Access 6 INDUSTRY AWARDS Direct access to high-quality international private equity Wealth Management and private credit Non-Interest Income • Global Private Equity Fund-o
Slide 20: Digital Ecosystems and Seamless Cross-Border Payments
Digital Ecosystems and Seamless Cross-Border Payments HLB Connect QR Pay through UPI A cross-border payment rail that enables Malaysian travellers in China, Macau and Hong Kong to pay by scanning merchants’ QR codes with HLB Connect ✓ Collaboration with UnionPay International (“UPI”) ✓ Competitive f
Slide 21: Sustainability Highlights
Sustainability Highlights Aligning our Net Zero Commitments EMISSIONS REDUCTION PROGRESS SUSTAINABLE FINANCE FRAMEWORK As at end of the second year (FY2026), we have exceeded the cumulative Exceeding our target of 15% to 25% sustainable financing target by 39% with RM9.8 billion mobilised GHG Emissi
Slide 22: Management Guidance for FY2027
Management Guidance for FY2027 Actual FY2026 Target FY2027 Gross Loans Growth 7.7% 6.0%-7.0% Committed to continuously Net Interest Margin 1.84% 1.80%-1.90% driving strategic priorities to Cost-to-Income Ratio 37.6% <39.0% deliver enhanced business GIL Ratio 0.57% <0.65% performance and shareholders
Slide 23: 3-5 Year Transformative Plan Delivers Tangible Outcome
3-5 Year Transformative Plan Delivers Tangible Outcome Wealth AI FY2023 FY2026 Business Growth Management Gross loans CIR 39.3% 37.6% Engines of Growth +7.6% 3Y CAGR CASA ratio 30.8% 34.7% SME loans +10.5% Franchise Fee ROE AI 3Y CAGR NoII ratio 19.9% 24.0% Income 12% Franchise sales income Credit c
Slide 24: Closing Remarks
Closing Remarks ▪ Accelerating key engines of growth with sharper propositions, digital enablement and strategic partnerships ▪ Sustaining growth trajectory driven by loans/financing, NoII and CASA expansion Anchoring on core franchise strength to drive ▪ Leveraging AI realisation for optimised oper
Slide 25: Supplementary Information
4 SUPPLEMENTARY INFORMATION 25
Slide 26: Group Performance
Group Performance Change % Change % RM’mil FY2025 FY2026 Q4FY26 (YoY) (YoY) Net interest income 4,927 5,086 3.2% 1,293 2.3% Non interest income 1,471 1,608 9.3% 468 31.6% Gross Total Loans Growth income 6,398 6,693 4.6% 1,761 8.7% Operating expenses (2,479) (2,514) 1.4% (681) 8.9% Net Interest Margi
Slide 27: HLB Islamic Key Highlights
HLB Islamic Key Highlights Change % Change % RM’mil FY2025 FY2026 Q4FY26 (YoY) (YoY) Total Net Income 1,230 1,189 -3.4% 308 9.2% Gross Loans Growth Operating expenses (376) (411) 9.3% (104) 12.6% Net Interest Profit beforeMargin taxation and zakat 854 777 -8.9% 204 7.5% Profit after taxation Cost-to
Slide 28: Thank You
Disclaimer This presentation has been prepared by Hong Leong Bank (“HLB”) for selected recipients for information purposes only and the information contained herein has been obtained from sources believed to be reliable. The information contained herein is believed to be correct as of the date of th
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