Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — Q1 FY2025 Earnings Presentation
24 slides from Hong Leong Bank Bhd's earnings presentation, Nov 28, 2024
Slide 1: Q1FY25 Results Analyst Presentation
Q1FY25 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 person
Slide 2: GMD/CEO Opening
1 GMD/CEO OPENING Upgraded HLB Connect mobile app with new features and designs HLB Q1FY25 ended 30 September 2024 2
Slide 3: CEO Message
CEO Message 1 Commendable topline performance Robust growth in net interest income and non-interest income 2 Growth Engines Pre-BOCD core franchise driving the commendable performance Key growth areas: Profit before associates Total income contribution NET INTEREST MARGIN SME Transport Vehicle 14.6%
Slide 4: Management Guidance
Management Guidance Target FY2025 Achieved Q1FY25 Gross Loans Growth 6.0%-7.0% 6.9% Net Interest Margin 1.85%-1.95% 1.92% Encouraging Cost-to-Income Ratio ~41.0% 39.1% start to the financial year GIL Ratio <0.65% 0.54% with all KPIs within guidance Net Credit Cost <10 bps 0 bps CASA Mix >3
Slide 5: Financial Highlights
YOUR DIGITAL BANK PLUS MUCH MORE 2 FINANCIAL HIGHLIGHTS The Complete HLB Connect Digital Bank Ecosystem HLB Q1FY25 ended 30 September 2024 5
Slide 6: Profit & Loss
Profit & Loss 8.6% +86 y-o-y RM’mil +118 965 889 -69 -58 Pre-BOCD Profit Net Interest Non Interest Opex Loan & Other Pre-BOCD Profit Commendable Q1FY24 Income Income Impairment Q1FY25 Allowances topline Change % Change % performance RM’mil Q1FY24 Q4FY24 Q1FY25 (QoQ) (YoY) underpinned by Net interest
Slide 7: Net Interest Income & NIM
Net Interest Income & NIM +3 bps q-o-q 1.92% 8 bps 1.89% ▲ y-o-y 1.87% 1.85% Strong 1.84% momentum continues with 1,244 1,206 improved NIM for RM’mil 1,156 1,181 ▲ 10.5% the 6th 1,126 y-o-y consecutive +3.2% q-o-q quarter, driven by robust loans/financing growth Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Ne
Slide 8: Non-Interest Income
Non-Interest Income Q1FY25 22.1% 19.2% Credit Card ~ Related Fees RM57.3 mil 354 Wealth 61 management RM’mil 268 business and 31 Wealth GM franchise 130 Management and 76 ▲ 32.4% sales gained selected Bancassurance RM74.2 mil traction to drive indicators: Income NoII contribution (Incl. Islamic port
Slide 9: Operating Expense
Operating Expense Admin & general 37.1% 37.9% 15% Domestic Personnel cost CIR 54% Marketing 9% Q1FY25 39.9% 39.1% ▪ Strategically investing for Establishment business RM’mil 22% growth while 626 556 94 managing CIR RM'mil 78 59 39 135 ▪ Positive JAWS 134 628 626 556 578 577 attained for the quarter
Slide 10: Loans & Financing
Loans & Financing +8,608 +4,066 (+8.4%) 194,232 6.9% RM’mil 181,726 (+7.2%) ▲ -227 y-o-y 8.0% (-1.7%) y-o-y Total Loans Q1FY24 Retail Business & Corporate International Total Loans Q1FY25 Sustained Operations growth momentum Q1FY25 driven by Domestic expansion in Residential ▲ 5.7% ▲ 8.6% ▲ 3.1% mor
Slide 11: Asset Quality
Asset Quality Gross Impaired Loans/Financing (GIL) Loans/Financing Impairment Coverage (LIC) 1.61% 1.59% 1.54% 224% 225% 216% Solid asset quality metrics coupled 0.57% 0.53% 0.54% 154% 155% with sufficient 146% loans/financing impairment RM’mil RM'mil coverage 1,042 1,041 1,049 93% 92% 91% Q3FY24 Q4
Slide 12: Asset Quality
Asset Quality Malaysia Industry GIL: Overseas 1.54% 0.58% 0.53% 0.54% 0.56% 0.51% 0.50% 1,007 963 982 67 78 67 Q3FY24 Q4FY24 Q1FY25 Q3FY24 Q4FY24 Q1FY25 Asset quality remains resilient Residential Properties Industry GIL: Transport VehiclesIndustry GIL: SME across all key Industry GIL: 1.21% 0.54% 3
Slide 13: Deposit
Deposit 4.9% RM’mil ▲ +2,187 y-o-y +8,445 (+6.6%) 219,437 (+13.6%) 209,163 -358 (-0.3%) Targeted efforts in community deposit Total Deposits Q1FY24 CASA Fixed Deposit Market Deposits Total Deposits Q1FY25 acquisition and customer-centric Q1FY25 cash management offerings Individual continued to CASA
Slide 14: Liquidity & Capital
Liquidity & Capital Liquidity Ratios Capital Adequacy 140% 138% 137% 137% 127% ▪ Robust liquidity and capital positions to 119% 120% 120% 120% support 118% 15.7% 15.9% 15.5% 16.3% 16.2% sustainable 14.3% business growth 13.9% 14.2% 13.6% 13.5% Average LDR of top 5 banks ▪ LTF and LTFE Jun-24: 92.0%
Slide 15: Shareholder Value
Shareholder Value Return on Equity and Return on Assets Net Assets & Earnings Per Share 11.8% 11.8% 11.8% 205 10.9% 186 161 • Commencing the new financial year on a positive 53 note with ROE 50 of 11.8% 1.43% 1.45% 1.48% 1.34% • Improved EPS 18.2 17.8 at 53 sen 15.1 16.6 16.7 FY2022 FY2023 FY2024 Q1
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 2024 (unaudited) Robust ROE 17.5% Operating Income Profit After Tax RMB'mil 16,702 17,241 Solid Cost-to-income Ratio 24.8% RMB'mil 9,039 3% 8,157 11% Prudent Coverage Ratio 497% 9MFY23 9MFY24
Slide 17: BOCD International Investor Day
BOCD International Investor Day Firsthand insights with City Tour in Chengdu Half-Day Dialogue Positive Feedback from Session with BOCD Analysts and Fund Chengdu Planning Exhibition Hall BOCD Data Centre Management Manager Opportunity for Analysts to BOCD thriving in the city of growth hear directly
Slide 18: Closing Remarks
3 CLOSING REMARKS HLB iconic Light Street Branch in Penang HLB Q1FY25 ended 30 September 2024 18
Slide 19: Awards & Accolades
Best SME Bank in Malaysia Awards & HLB has continued proving itself as the choice bank for SMEs on the Malaysian stage, securing the award at the prestigious Euromoney Awards for Excellence 2024. Accolades Best Deposit Product in Malaysia HLB received the award by The Asian Banker for its multi-curr
Slide 20: Closing Remarks
Closing Remarks ▪ Strong start to the new financial year driven by new engines of growth ▪ Commendable topline growth delivered by discipline NIM management and improved NoII Positive start contributions signifies our commitment to ▪ Prudent cost management through strategic investments in technolog
Slide 21: Supplementary Information
4 SUPPLEMENTARY INFORMATION HLB iconic Light Street Branch in Penang HLB Q1FY25 ended 30 September 2024 21
Slide 22: Group Performance
Group Performance Change Change RM’mil Q1FY24 Q1FY25 Q4FY24 (YoY) (QoQ) Net interest income 1,126 1,244 10.5% 1,206 3.2% Non-interest income 268 354 32.0% 271 30.6% Total income 1,394 1,598 14.6% 1,477 8.2% Operating expenses (556) (626) 12.4% (628) -0.4% Operating profit before allowances 838 972 1
Slide 23: HLISB Key Highlights
HLISB Key Highlights Change Change RM’mil Q1FY24 Q1FY25 Q4FY24 (YoY) (QoQ) Total net income 232 284 22.7% 254 12.2% Operating expenses (93) (73) -27.6% (80) -17.2% Profit before taxation and zakat 159 191 20.4% 174 9.9% Profit after taxation and zakat 119 144 20.8% 131 10.2% Cost-to-income ratio 31.
Slide 24: Thank You / Disclaimer
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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