Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — H1 FY2026 Earnings Presentation
24 slides from Hong Leong Bank Bhd's earnings presentation, Feb 27, 2026
Slide 1: H1FY26 Results Analyst Presentation
H1FY26 RESULTS ANALYST PRESENTATION 27 FEBRUARY 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
1 GMD/CEO OPENING HLB H1FY26 ended 31 December 2025 2
Slide 3: CEO Message
CEO Message 1 Resilient Trajectory in Topline Growth Sustained expansion in loans/financing and non-interest income 2 Growth Engines Pre-BOCD core business maintaining vigorous growth momentum Key growth areas: Total income Pre-BOCD Profit Wealth Management Global Markets LOANS/FINANCING 3.8% RM215.
Slide 4: Management Guidance
Management Guidance Target FY2026 Achieved H1FY26 Gross Loans Growth 6.0%-7.0% 8.2% Net Interest Margin 1.80%-1.90% 1.83% Achieving Cost-to-Income Ratio ~39.0% 35.9% resilient performance, GIL Ratio <0.65% 0.59% on track to meet all the KPIs set for FY2026 Net Credit Cost <10 bps 3 bps CAS
Slide 5: Financial Highlights
2 FINANCIAL HIGHLIGHTS HLB H1FY26 ended 31 December 2025 5
Slide 6: Profit & Loss
Profit & Loss 5.6% y-o-y RM’mil 57 50 1,965 65 2,075 63 Commendable Pre-BOCD Profit Net Interest Non Interest Opex Loan & Other Pre-BOCD Profit core business H1FY25 Income Income Impairment H1FY26 Allowances growth driven by healthy topline Change % Change % RM’mil H1FY25 H1FY26 Q2FY26 growth, effec
Slide 7: Net Interest Income & NIM
Net Interest Income & NIM 1.91% 1.90% 1.83% 1.90% 1.87% ▲ 8 bps 1.84% 1.83% y-o-y 2,537 RM’mil 2,472 ▲ 2.6% Quarterly NIM y-o-y stability 1,274 maintained 1,264 1,264 1,228 amidst 1,191 competitive deposit landscape Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 H1FY25 H1FY26 Net interest income NIM HLB H1FY26
Slide 8: Non-Interest Income
Non-Interest Income 24.3% 23.5% H1FY26 7.5% ▲ Wealth 814 y-o-y RM’mil Management and ▲ 33.2% 757 Bancassurance RM207.7 mil NoII growth and 131 Income 128 ratio driven by solid performance in 293 selected 279 GM Franchise ▲ 19.8% key focus areas indicators: Sales Income RM249.3 mil of wealth manageme
Slide 9: Operating Expense
Operating Expense Admin & general 37.4% 16% Domestic 33.9% Personnel cost CIR 55% Marketing 7% 38.8% H1FY26 35.9% RM’mil 1,253 Establishment 1,203 Low CIR 22% 199 attributed to 192 127 88 productivity gains 263 264 from AI RM’mil realisation 627 601 626 607 596 665 659 H1FY25 H1FY26 Q2FY25 Q3FY25 Q4
Slide 10: Loans & Financing
Loans & Financing 8.2% +10,028 +5,332 +888 215,658 ▲ RM’mil (+7.7%) (+9.8%) (+6.3%) y-o-y 199,373 8.0% y-o-y Strong growth Total Loans as at Retail Business & Corporate International Total Loans as at trajectory in Dec 2024 Operations Dec 2025 H1FY26 loans/financing, underpinned by Domestic expansio
Slide 11: Asset Quality
Asset Quality Gross Impaired Loans/Financing (GIL) Loans/Financing Impairment Coverage (LIC) 258% 243% 240% 1.42% 1.41% 1.37% Asset quality 0.54% 0.57% 0.59% 167% 160% metrics remain 154% solid with adequate loans/financing 97% impairment RM’mil 1,215 1,276 1,144 90% coverage; 85% maintained MOA 91%
Slide 12: Asset Quality
Asset Quality Malaysia Industry GIL: Overseas 1.37% 1.57% 1.76% 0.53% 0.50% 0.50% 0.77% 0.93%* 0.68%* 1,031 989 1,011 Single case in SG 124 of ~SGD39 mil, 113 129 which is fully collaterised 98 140 Solid asset Q4FY25 Q1FY26 Q2FY26 Q4FY25 Q1FY26 Q2FY26 quality ratios Note: * GIL ratio excluding the s
Slide 13: Deposit
Deposit +9,799 (+8.5%) 6.8% RM’mil +8,565 242,045 ▲ (+12.1%) -3,053 y-o-y (-7.5%) 226,734 Strengthening low- cost funding base through sustainable CASA Total Deposits as at CASA Fixed Deposit Market Deposit Total Deposits Dec 2024 as at Dec 2025 momentum, driven by community H1FY26 deposit acquisiti
Slide 14: Liquidity & Capital
Liquidity & Capital Liquidity Ratios Capital Adequacy^ 132% 133% 133% 131% 131% 120% 120% 118% 117% 117% 15.9% 16.3% 15.7% 15.7% 15.6% 14.0% 13.7% 14.2% Prudent balance Average LDR of 13.6% 13.5% top 5 domestic banks sheet management Sep’25: 92.1% delivering solid liquidity and 87.9% 88.1% 87.7% cap
Slide 15: Shareholder Value
Shareholder Value Return on Equity, Return on Assets & EPS Declared Dividend 11.8% 11.8% 11.2% 47% 11.4% 32% 34% 1.43% 1.45% 1.40% 1.43% Improve shareholder returns 68 with uplift in interim 205 208 186 dividend to 30 sen 43 38 per share 110 25 28 30 21 FY2023 FY2024 FY2025 H1FY26 FY2023 FY2024 FY20
Slide 16: Closing Remarks
3 CLOSING REMARKS HLB H1FY26 ended 31 December 2025 16
Slide 17: Key Sustainability Highlights
Key Sustainability Highlights Aligning our Net Zero Commitments EMISSIONS REDUCTION TARGETS SUSTAINABLE FINANCE FRAMEWORK FINANCED EMISSION (PCAF) Target to mobilise RM20 billion over the next five years Developing sectoral decarbonisation by FY2029 to support Green Projects. Cumulatively to date, m
Slide 18: Accelerating Digital Velocity via HLB ConnectPro & ApplePay
Accelerating Digital Velocity via HLB ConnectPro & ApplePay HLB VISA Cards are now Mobile Web compatible with Apple Pay (launch in Dec 2025) ➢ Position us to be the “Transaction Banker of Choice for SME” in Malaysia ➢ Our next-generation corporate digital banking platform ➢ Launch in Dec 2025 ➢ Desi
Slide 19: Unveiling a new Wealth Management Brand: HLB Priority
Unveiling a new Wealth Management Brand: HLB Priority Core Client Value Proposition Pillars WEALTH WEALTH SOLUTIONS HEALTH PRIVILEGES ADVISORY A shift from transactional banking to an Focused on delivering solutions tailored Unique partnership with the Asia One ▪ Curated dining and travel experience
Slide 20: Closing Remarks
Closing Remarks ▪ Solid 5.6% y-o-y growth in pre-associate profit underpinned by robust momentum across core business lines and continued focus on operational efficiency ▪ Sustainable expansion in NoII lead to contribution of 24.3% in total income, led by high- growth performance across key focus ar
Slide 21: Supplementary Information
4 SUPPLEMENTARY INFORMATION HLB H1FY26 ended 31 December 2025 21
Slide 22: Group Performance
Group Performance Change % Change % RM’mil H1FY25 H1FY26 Q2FY26 (YoY) (YoY) Net interest income 2,472 2,537 2.6% 1,264 2.9% Non interest income 757 814 7.5% 403 -0.2% Total income 3,230 3,352 3.8% 1,667 2.1% Operating expenses (1,253) (1,203) -4.0% (596) -5.0% Operating profit before allowances 1,97
Slide 23: HLISB Key Highlights
HLISB Key Highlights Change % Change % RM’mil H1FY25 H1FY26 Q2FY26 (YoY) (YoY) Total Net Income 577 601 4.2% 303 3.7% Operating expenses (188) (205) 9.4% (104) 10.3% Profit before taxation and zakat 389 396 1.7% 199 0.6% Profit after taxation and zakat 293 301 2.5% 153 2.2% Cost-to-income ratio 32.0
Slide 24: 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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