Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — Q1 FY2026 Earnings Presentation
25 slides from Hong Leong Bank Bhd's earnings presentation, Nov 27, 2025
Slide 1: Q1FY26 Results Analyst Presentation
Q1FY26 RESULTS ANALYST PRESENTATION 27 NOVEMBER 2025 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
1 GMD/CEO OPENING HLB Q1FY26 ended 30 September 2025 2
Slide 3: CEO Message
CEO Message 1 Sustained Topline Expansion Strong upward trajectory in loans/financing and non-interest income 2 Growth Engines Strength demonstrated in Pre-BOCD core business Key growth areas: Total income Pre-BOCD Profit Wealth Management Global Markets LOANS/FINANCING RM’mil 5.4% y-o-y RM211.8 bil
Slide 4: Management Guidance
Management Guidance Target FY2026 Achieved Q1FY26 Gross Loans Growth 6.0%-7.0% 9.1% Net Interest Margin 1.80%-1.90% 1.84% Encouraging Cost-to-Income Ratio ~39.0% 36.0% start to FY2026: momentum from GIL Ratio <0.65% 0.57% 3-5Y Plan drives core business Net Credit Cost <10 bps 2 bps CASA Mi
Slide 5: Financial Highlights
2 FINANCIAL HIGHLIGHTS HLB Q1FY26 ended 30 September 2025 5
Slide 6: Profit & Loss
Profit & Loss 7.8% 58 19 y-o-y RM’mil 29 1,040 965 30 Pre-BOCD Profit Net Interest Non Interest Opex Loan & Other Pre-BOCD Profit Topline gains and Q1FY25 Income Income Impairment Q1FY26 operational Allowances efficiency deliver positive JAWS, Change % Change % RM’mil Q1FY25 Q4FY25 Q1FY26 driving pr
Slide 7: Net Interest Income & NIM
Net Interest Income & NIM 3.00% 3.00% 3.00% 3.00% -25 bps q-o-q 2.75% 1.92% 1.90% 1.87% 1.90% -6 bps q-o-q 1.84% ▲ 8 bps y-o-y 1,264 1,274 Navigating NIM RM’mil 1,244 1,228 pressure with 1,191 +0.7% ▲ 2.4% proactive q-o-q y-o-y management amidst OPR impact Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Net inte
Slide 8: Non-Interest Income
Non-Interest Income 24.4% Q1FY26 22.1% 16.3% ▲ Wealth 411 y-o-y RM’mil Management and ▲ 42.6% Bancassurance RM105.8 mil Continued 354 77 Income traction in wealth 61 management, GM franchise 147 selected GM Franchise ▲ 22.1% sales and 130 indicators: Sales RM128.4 mil investment gains driving higher
Slide 9: Operating Expense
Operating Expense 38.1% Admin & general Domestic 34.1% 15% CIR Personnel cost Marketing 56% 7% 39.1% Q1FY26 36.0% Delivering RM’mil positive JAWS Establishment and lower CIR 626 22% 607 resulting from 98 92 strategic cost 59 42 management and 132 131 AI productivity RM’mil and realisation 626 627 60
Slide 10: Loans & Financing
Loans & Financing 9.1% +9,311 +6,904 +1,313 ▲ RM’mil (+7.2%) (+13.2%) (+10.1%) 211,817 y-o-y 194,232 8.0% y-o-y Above-trend loans Total Loans Q1FY25 Retail Business & Corporate International Total Loans Q1FY26 growth with Operations Q1FY26 strong momentum across all key Domestic segments, while Resi
Slide 11: Asset Quality
Asset Quality Gross Impaired Loans/Financing (GIL) Loans/Financing Impairment Coverage (LIC) 258% 250% 243% 1.41% 1.42% 1.41% Solid asset quality 0.57% 0.54% 0.57% 165% 167% coupled with 160% prudent loans/financing 95% 97% impairment RM’mil 90% coverage, 1,146 1,144 1,215 maintaining preemptive 92%
Slide 12: Asset Quality
Asset Quality Malaysia Industry GIL: Overseas 1.41% 0.55% (-1bps q-o-q) 1.57% 0.53% 0.50% 0.79% 0.77% 0.68%* 1,031 1,031 989 Single case of ~SGD39 mil in 116 113 129 SG, which is fully 98 collateralised Q3FY25 Q4FY25 Q1FY26 Q3FY25 Q4FY25 Q1FY26 Asset quality Note: * GIL ratio excluding the single ca
Slide 13: Deposit
Deposit +6,437 7.7% RM’mil +4,018 (+18.3%) 236,294 ▲ +6,403 (+3.5%) y-o-y (+9.1%) 219,437 CASA acquisition through customer- centric cash Total Deposits CASA Fixed Deposit Market Deposit Total Deposits management Q1FY25 Q1FY26 offerings to SME Q1FY26 segment and Individual community CASA CASA Ratio
Slide 14: Liquidity & Capital
Liquidity & Capital Liquidity Ratios Capital Adequacy^ 120% 120% 120% 117% 117% Average LDR of top 5 domestic banks 16.3% Jun’25: 91.2% 16.2% 15.9% 15.7% 15.7% 87.0% 86.6% 87.9% 86.5% 88.1% 14.2% 14.0% 13.7% 14.2% 13.6% Stable funding and liquidity positions for sustainable business growth Q1FY25 Q2
Slide 15: Shareholder Value
Shareholder Value Return on Equity and Return on Assets Net Assets & Earnings Per Share 205 208 186 11.8% 11.8% 11.2% 11.2% Resilient financial 53 53 performance 1.43% 1.45% 1.40% 1.39% in an uncertain global landscape 18.2 19.2 17.8 19.0 16.6 FY2023 FY2024 FY2025 Q1FY26 FY2023 FY2024 FY2025 Q1FY25
Slide 16: Performance of Associated Company: Bank of Chengdu
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for 9M ended 30 September 2025 (unaudited) Operating Income Profit After Tax Robust ROE 15.2% RMB'mil 17,761 RMB'mil 17,241 3% 9,039 9,493 5% Solid Cost-to- 26.4% income Ratio 9MFY24 9MFY25 9MFY24 9MFY25 Gross Loan GIL
Slide 17: Closing Remarks
3 CLOSING REMARKS HLB Q1FY26 ended 30 September 2025 17
Slide 18: Strengthening HLB's Wealth Management Branding
Strengthening HLB’s Wealth Management Branding STRATEGIC EXECUTION PERFORMANCE SNAPSHOT ▪ Addressing the challenge of inter-generational succession planning ➢ New brand film, ▪ Experienced hires in key roles Generations Ahead ▪ Talent Management & Wealth Academy ➢ New HLB Private Bank Office in Guoc
Slide 19: Expansion of our presence in Vietnam
Expansion of our presence in Vietnam A region with high growth potential Performance Launching of Vietnam’s first embedded financing initiative Gross loans Customer deposits • Vietnam digital transformation is 12.0% 12.5% advancing rapidly. Its digital economy growth is among the top in ASEAN balanc
Slide 20: Awards & Accolades
Awards & Accolades SME Banking Leadership Digital & Operational Excellence • Best SME Bank: Driven by our digital • ABF Retail Banking Awards 2025 leadership and commitment to serving ❑ Digital Transformation of the Year: customers’ diversified needs Revolutionising credit collections with ❑ Euromon
Slide 21: Closing Remarks
Closing Remarks ▪ Delivered commendable pre-BOCD profit of 7.8% y-o-y, driven by growth engines across our business lines coupled with operational efficiency from AI realisation ▪ Sustained NoII growth to >24% of total income, underpinned by robust performance in wealth management business, global m
Slide 22: Supplementary Information
4 SUPPLEMENTARY INFORMATION HLB Q1FY26 ended 30 September 2025 22
Slide 23: Group Performance
Group Performance Change % Change % RM’mil Q1FY25 Q1FY26 Q4FY25 (YoY) (QoQ) Net interest income 1,244 1,274 2.4% 1,264 0.7% Non interest income 354 411 16.3% 356 15.6% Total income 1,598 1,685 5.4% 1,620 4.0% Operating expenses (626) (607) -3.0% (626) -3.0% Operating profit before allowances 972 1,0
Slide 24: HLISB Key Highlights
HLISB Key Highlights Change % Change % RM’mil Q1FY25 Q1FY26 Q4FY25 (YoY) (QoQ) Total Net Income 284 298 4.7% 282 5.5% Operating expenses (93) (101) 8.5% (92) 9.6% Profit before taxation and zakat 191 197 2.8% 190 3.5% Profit after taxation and zakat 144 148 2.9% 144 2.7% Cost-to-income ratio 32.4% 3
Slide 25: 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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