Hong Leong Financial Group Bhd. · MYX:HLFG
Hong Leong Financial Group Bhd — 1Q FY2025 Earnings Presentation
22 slides from Hong Leong Financial Group Bhd's earnings presentation, Nov 28, 2024
Slide 1: 1Q FY25 Results Analyst Presentation
1Q FY25 Results Analyst Presentation 28 November 2024 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 perso
Slide 2: Financial Highlights: 1Q FY25
Financial Highlights: 1Q FY25 Hong Leong Financial Group Berhad 2
Slide 3: Performance Highlights
Performance Highlights Record Quarterly 1Q FY25 PATAMI driven by improved topline and investment income, especially from insurance RM’ Mil 16.4% YoY 198 16 118 21.1% 1,587 1,363 -50 -58 YoY 1Q FY24 PBT Net Interest Non Interest Opex Impairment Profit before associate Associates 1Q FY25 PBT Change %
Slide 4: PBT by segments
PBT by segments Growth driven by Commercial Banking and Insurance & Takaful HLFG PBT 1Q FY25 YoY PBT (%) (RM’ Bil) Group 1,587 16.4% Commercial Insurance Banking 1Q FY25: and Takaful 84% RM1.59 bil 15% Commercial Banking 1,339 7.7% 16.4% YoY Investment Banking & Asset Insurance and Takaful Managemen
Slide 5: Net Interest Income & Non-Interest Income
Net Interest Income& Non-Interest Income Higher NOII ratio of 32.9% supported by robust fee income and investments gains Operating Income Breakdown (RM’ Mil) Change % NOII RM’ mil 1Q FY24 1Q FY25 (YoY) NII 1,892 Net Interest Income 1,152 1,270 10.2% 1,576 622 424 Non Interest Income 622 424 46.7% 1,
Slide 6: Operating Expense
Operating Expense CIR improved on positive JAWS to 36.5%, one of the lowest in the industry (RM’ Mil) Change % RM’ mil 1Q FY24 1Q FY25 (YoY) 40.7% 36.5% Personnel 356 380 6.8% Establishment 148 145 (2.0%) Marketing 51 64 24.8% Administration and general (A&G) 86 102 18.7% 691 Total 641 691 7.8% 641
Slide 7: Asset Quality
Asset Quality Solid asset quality with a stable GIL ratio and high coverage ratio Credit Cost (Bps) 42 10 6 -6 1 FY21 FY22 FY23 FY24 1Q FY25 Gross Impaired Loans Ratio (Bps) 57 56 57 53 54 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Loans/Financing Impairment Coverage (LIC) (%) 268.6% 271.6% 265.1% 276.3% 26
Slide 8: Liquidity & Capital
Liquidity & Capital Capital and liquidity remains sound and above regulator thresholds Liquidity Capital Adequacy` 14.5% 14.5% 14.3% 14.1% Loan-to- 14.0% Deposit Ratio 84.7% 87.2% 87.4% 12.4% 12.3% (LDR) 12.0% 12.0% 11.5% Net Stable Funding 116.5% 115.4% 116.8% Ratio (NSFR) 10.9% 10.9% 11.5% 11.3% 1
Slide 9: Shareholder Value
Shareholder Value Record Quarterly PATAMI led higher 1Q FY25 ROE of 11.3% PATAMI & ROE Book Value Per Share RM’ Bil RM 11.1% 11.2% 11.3% 10.4% 10.4% 3.20 2.90 2.45 2.27 26.3 +14.3% 24.3 21.7 YoY 19.0 20.3 0.85 0.74 FY21 FY22 FY23 FY24 1Q FY25 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 PATAMI ROE 1Q PATAMI H
Slide 10: Commercial Banking: Hong Leong Bank
Commercial Banking: Hong Leong Bank Improved performance driven by robust loan growth, higher NOII contributions and stable associate contributions Change % Change % Income Statement (RM’ mil) 1Q FY24 1Q FY25 Key Operating Ratios 1Q FY24 1Q FY25 (YoY) (YoY) Net Interest Income 1,126 1,244 10.5% Prob
Slide 11: Insurance & Takaful: HLA Holdings
Insurance & Takaful: HLA Holdings Robust PBT growth driven by Life Insurance and General Insurance Change % PBT (RM’ mil) 1Q FY24 1Q FY25 (YoY) Life Insurance 90 196 >100% Life insurance & General Family Takaful, PBT 1Q FY25* Insurance, Family Takaful 5 0.5 (90.0%) 83% of PBT 17% of PBT RM237 mil Si
Slide 12: Life Insurance & Family Takaful
Life Insurance & Family Takaful Higher gross premiums driven by 24.5% y-o-y new business growth Gross Premiums & Contributions: Segment Gross Premium & Contributions: Mix New Business: Mix RM’ mil RM’ mil 4.8% YoY 4.8% YoY 24.5% YoY 865 907 865 907 307 247 184 84% 83% 140 Life 88% 86% Regular Regula
Slide 13: Life Insurance & Family Takaful
Life Insurance & Family Takaful Remains focused on protection, especially high net-worth segment. HLA Annualised Premiums: Protection & Saving Mix HLA Protection Segment NBRP (Agency) 43% 36% Protection 62% 59% High Net-Worth Saving 57% 64% Mass-Market 38% 41% 1Q FY24 1Q FY25 1Q FY24 1Q FY25 Gross P
Slide 14: Investment Banking: HLCB
Investment Banking: HLCB Stockbroking performance remains buoyant but lower investment banking and asset management contribution Change % Asset Management HLCB average ROE RM’ mil 1Q FY24 1Q FY25 (YoY) Average AUM (RM’ bil) (%) Net Interest Income 12 16 29.0% Non-Interest Income 51 41 (9.9%) Total i
Slide 15: Closing Remarks
Closing Remarks Hong Leong Financial Group Berhad 15
Slide 16: Closing Remarks
Closing Remarks • Strong 1Q FY25 was led by our focused execution of strategic priorities in growing our topline. This has resulted in consecutive NIM recovery, above-industry loan growth, fee income growth and investment gains, especially from insurance. • Malaysia’s economic outlook remain positiv
Slide 17: Supplementary Information
Supplementary Information Hong Leong Financial Group Berhad 17
Slide 18: Key Financial Summary
Key Financial Summary Change % Change % RM’ mil 1Q FY24 1Q FY25 4Q FY24 1Q FY25 (YoY) (QoQ) Net Interest Income 1,152 1,270 10.2% 1,232 1,270 3.1% Non-Interest Income 424 622 46.7% 493 622 26.2% Total income 1,576 1,892 20.0% 1,725 1,892 9.7% Operating expenses (641) (691) 7.8% (709) (691) (2.5%) Op
Slide 19: Key Financial Summary
Key Financial Summary (%) 1Q FY24 1Q FY25 YoY 4Q FY24 1Q FY25 QoQ Profitability Return on Average Equity (ROE) 10.8% 11.3% 10.7% 11.3% Non-interest income / total income 26.9% 32.9% 28.6% 32.9% Cost-to-income Ratio 40.7% 36.5% 41.1% 36.5% Asset Quality LIC (excl. Reg. Reserves) 164.6% 145.5% 155.0%
Slide 20: 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 21: 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 22: THANK YOU
THANK YOU Hong Leong Financial Group Berhad 22
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