Hong Leong Financial Group Bhd. · MYX:HLFG
Hong Leong Financial Group Bhd — H1 FY2026 Earnings Presentation
23 slides from Hong Leong Financial Group Bhd's earnings presentation, Feb 27, 2026
Slide 1: 1H FY26 Results Analyst Presentation
1H FY26 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 perso
Slide 2: Financial Highlights: 1H FY26
Financial Highlights: 1H FY26 Hong Leong Financial Group Berhad 2
Slide 3: Performance Highlights
Performance Highlights 1H FY26 PATAMI improvement from improved topline and prudent cost management RM’ Mil 2.1% YoY 6.3% 50 61 100 YoY 3,163 (63) (83) 3,228 1H FY25 PBT Net Interest Non Interest Opex Impairment Profit before associate Associates 1H FY26 PBT Change % • 1H FY26 topline improved by +3
Slide 4: PBT by entity
PBT by entity Stronger profitability lead by improvement across all businesses HLFG PBT 1H FY26 YoY PBT (%) (RM’ Mil) Group* Insurance and 3,228 2.1% Takaful 14% (vs 1H FY25: 13%) Commercial 1H FY26: Banking Commercial Banking* RM3.23 bil 2,758 0.6% 85% (vs 1H FY25: 86%) 2.1% YoY Investment Banking
Slide 5: Net Interest Income & Non-Interest Income
Net Interest Income & Non-Interest Income Higher NoII ratio of 33.3% supported by expansion in fee income and insurance income Operating Income Breakdown (RM’ Mil) Change % RM’ mil 1H FY25 1H FY26 3,858 (YoY) 3,747 1,225 1,286 Net Interest Income 2,522 2,572 2.0% NOII NII Non-Interest Income 1,225 1
Slide 6: Operating Expense
Operating Expense 1H FY26 CIR improved by 370 bps on positive JAWS to 33.2%, one of the lowest in the industry (RM’ Mil) Administration and general 15% Marketing 36.9% 7% 1H FY26 OPEX: RM1,281 mil Personnel 56% 33.2% Establishment 22% Change % RM’ mil 1H FY25 1H FY26 (YoY) 1,381 1,281 Personnel 749
Slide 7: Asset Quality
Asset Quality Solid asset quality with a stable GIL ratio and high coverage ratio Credit Cost (Bps) 10 6 1 3 -6 FY22 FY23 FY24 FY25 1H FY26 Gross Impaired Loans Ratio (Bps) 57 57 59 55 54 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Loans/Financing Impairment Coverage (LIC) (%) 260.8% 251.3% 259.3% 244.4% 241
Slide 8: Liquidity & Capital
Liquidity & Capital Capital and liquidity remains sound and above regulatory thresholds Capital Adequacy (%) 13.9% 14.2% 14.2% CAR 12.0% 12.3% 12.3% Tier 1 CET1 11.0% 11.3% 11.3% Dec-24 Sep-25 Dec-25 Note: ` Capital base & ratio after final dividends Liquidity Ratios (%) Loan-to-Deposit Ratio 87.7%
Slide 9: Shareholder Value
Shareholder Value ROE remains commendable at 10.7%, Lifts interim dividend per share by +10% to 22 sen PATAMI & ROE Book Value Per Share RM ’BIL RM 11.1% 11.2% 10.5% 10.7% 10.4% 3.20 3.25 2.88 27.3 29.2 22.3 25.1 2.45 20.7 1.74 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dividend Per Share 72 1.69 49 54 46 2
Slide 10: Commercial Banking: Hong Leong Bank
Commercial Banking: Hong Leong Bank Improved performance driven by topline expansion, cost discipline and solid asset quality Change % Change Income Statement (RM’ mil) 1H FY25 1H FY26 Key Operating Ratios 1H FY25 1H FY26 (YoY) (bps) Net Interest Income 2,472 2,537 2.6% Profitability & Efficiency (%
Slide 11: Insurance & Takaful: HLA Holdings
Insurance & Takaful: HLA Holdings Double-digit PBT growth driven by stronger net investment income and higher associate contribution Change % PBT (RM’ mil) 1H FY25 1H FY26 (YoY) Life Insurance 307 361 17.6% Life Insurance & General Family Takaful 7 5 (34.4%) Family Takaful, Insurance PBT 1H FY26* 84
Slide 12: Life Insurance & Family Takaful (MFRS 17)
Life Insurance & Family Takaful (MFRS 17) HLA and HLMT CSM increased by 2.4% YTD from new business outpacing CSM release HLA & HLMT Contractual Service Margin YTD (Jun-25 to Dec-25) RM’ mil 114 8 (80) (1) 1,764 1,806 CSM as at Jun-25 New Business CSM CSM Release Expected Growth Economic and non- CSM
Slide 13: Life Insurance & Family Takaful
Life Insurance & Family Takaful Gross premiums improved by 1.5% from higher single premium MRTT and stronger renewals Gross Premiums & Contributions: Segment* Gross Premium & Contributions: Mix* Gross Premiums & Contributions channel mix* RM’ mil RM’ mil RM’ mil +1.5% YoY +1.5% YoY +1.5% YoY 1,939 1
Slide 14: Life Insurance & Family Takaful
Life Insurance & Family Takaful Pivot for higher protection mix on-track; Holistic efforts to improve agency recruitment and productivity HLA Annualised Premiums: Protection & Saving Mix Combined* No. of Agents 36% 40% 16,037 Protection 14,114 Saving 1H FY25 1H FY26 64% 60% Lower HLA and HLMT No. of
Slide 15: Investment Banking: HLCB
Investment Banking: HLCB PBT growth driven by higher investment banking contributions and equity investments, offsetting reduced stockbroking income Change % Asset Management HLCB average ROE RM’ mil 1H FY25 1H FY26 (YoY) Average AUM (RM’ bil) (%) Net Interest Income 32 29 (9.5%) Non-Interest Income
Slide 16: Closing Remarks
Closing Remarks Hong Leong Financial Group Berhad 16
Slide 17: Closing Remarks
Closing Remarks • HLFG operating profit before associates improved by +6.3% YoY, driven by strong topline growth, stringent cost controls and solid asset quality. • Malaysia’s economy is projected to maintain a steady growth trajectory of 4.0% to 4.5% in 2026. This resilience is supported by robust
Slide 18: Supplementary Information
Supplementary Information Hong Leong Financial Group Berhad 18
Slide 19: Key Financial Summary
Key Financial Summary Change % Change % RM’ mil 1H FY25 1H FY26 1Q FY26 2Q FY26 (YoY) (QoQ) Net Interest Income 2,522 2,572 2.0% 1,292 1,281 (0.8%) Non-Interest Income 1,225 1,286 5.0% 649 637 (1.8%) Total income 3,747 3,858 3.0% 1,941 1,918 (1.2%) Operating expenses (1,381) (1,281) (7.2%) (646) (63
Slide 20: Key Financial Summary
Key Financial Summary Change % Change % (%) 1H FY25 1H FY26 1Q FY26 2Q FY26 (YoY) (QoQ) Profitability Return on Average Equity (ROE) 11.1% 10.7% 10.4% 10.9% Non-interest income / total income 32.7% 33.3% 33.4% 33.2% Cost-to-income Ratio 36.9% 33.2% 33.3% 33.2% Asset Quality LIC (excl. Reg. Reserves)
Slide 21: 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 22: 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 23: THANK YOU
THANK YOU Hong Leong Financial Group Berhad 23
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