Hong Leong Bank Bhd · MYX:HLBANK
Hong Leong Bank Bhd — FY2025 Earnings Presentation
27 slides from Hong Leong Bank Bhd's earnings presentation, Aug 27, 2025
Slide 1: FY2025 Results Analyst Presentation
FY2025 RESULTS ANALYST PRESENTATION 27 AUGUST 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 o
Slide 2: GMD/CEO Opening
1 GMD/CEO OPENING HLB FY2025 ended 30 June 2025 2
Slide 3: CEO Message: Robust Topline Performance and Growth Engines
CEO Message 1 Robust Topline Performance Contributed by strong loans/financing growth momentum and uplift in non- 2 Growth Engines Firing Delivering favourable outcome in core franchise business interest income contribution Key growth areas: Pre-BOCD Profit Total income NET INTEREST MARGIN (NIM) (no
Slide 4: CEO Message: Foundation of Strength and Higher Dividend Payout
CEO Message 3 A Foundation of Strength Strong balance sheet to weather potential headwinds 4 Higher Dividend Payout Reward shareholders for loyalty and support CASA Gross Impaired Loan (GIL) Declared Dividend 0.53% 0.54% 32.5% 32.9% TOTAL DIVIDEND 47% RM’bil 96 sen RM’mil 9.6% 78.5 1,144 71.6 y-o-y
Slide 5: Management Guidance
Management Guidance Target FY2025 Achieved FY2025* Gross Loans Growth 6.0%-7.0% 7.8% Net Interest Margin 1.85%-1.95% 1.90% Commendable set of KPIs Cost-to-Income Ratio ~40.0% 38.7% achieved on the backdrop of a GIL Ratio <0.65% 0.54% challenging economic Net Credit Cost <10 bps 1 bp landsc
Slide 6: Financial Highlights
2 FINANCIAL HIGHLIGHTS HLB FY2025 ended 30 June 2025 6
Slide 7: Profit & Loss
Profit & Loss Pre-BOCD Profit 3,903 RM’mil 3,545 3,336 3,337 2,710 2,735 10.1% 2,623 2,347 y-o-y FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Uplift in (Normalised) Pre-BOCD profit RM’mil FY2024 FY2025 Change % FY2025 Change % with growth (YoY) (Normalised)* (YoY) stemming from Total inco
Slide 8: Net Interest Income & NIM
Net Interest Income & NIM 1.90% 1.92% 1.90% 1.89% 1.90% 1.86% ▲ 4 bps 1.87% y-o-y 4,927 4,669 ▲ 5.5% y-o-y Prudent NIM RM’mil management 1,264 1,244 1,228 ahead of OPR 1,206 1,191 impact in Q1FY26 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 FY2024 FY2025 Net interest income NIM HLB FY2025 ended 30 June 2025
Slide 9: Non-Interest Income
Non-Interest Income 23.0% 19.1% FY2025 1,471 33.4% ▲ Wealth y-o-y RM’mil Management and ▲ 25.0% 262 Bancassurance RM315.8 mil 1,102 Income Wealth 172 489 management and 250 selected GM Franchise ▲ 39.1% GM franchise indicators: Sales RM420.0 mil sales continued to drive NoII growth 680 720 Credit Ca
Slide 10: Operating Expense
Operating Expense Admin & general Domestic 38.1% 37.1% 15% Personnel cost CIR 54% Marketing 10% 40.5% 38.7% FY2025 RM’mil 2,479 A disciplined 2,339 Establishment 384 21% approach to cost 343 238 management and 181 AI realisation 531 524 leads to an RM’mil improved CIR 628 626 627 601 626 1,284 1,333
Slide 11: Loans & Financing
Loans & Financing 7.8% +8,810 +5,544 +719 ▲ RM’mil (+7.0%) (+10.2%) (+5.1%) 210,064 y-o-y 194,927 8.0% y-o-y Total Loans FY2024 Retail Business & Corporate International Total Loans FY2025 Operations Loans/financing FY2025 growth driven Domestic by strong Residential ▲ 6.0% ▲ 7.5% ▲ 11.2% performanc
Slide 12: Asset Quality
Asset Quality Gross Impaired Loans/Financing (GIL) Loans/Financing Impairment Coverage (LIC) 1.44% 1.41% 1.42% 260% 258% 250% 209% 0.55% 0.57% 0.54% Solid 165% 167% asset quality 139% coupled with adequate 97% RM’mil 95% impairment 1,092 1,146 1,144 coverage 92% 92% 91% Q2FY25 Q3FY25 Q4FY25 Q2FY25 Q
Slide 13: Asset Quality
Asset Quality Industry GIL: Malaysia Overseas 1.42% (+1bp q-o-q) 0.54% 0.55% 0.53% 0.71% 0.79% 0.77% 992 1,031 1,031 100 116 113 Indicators Q2FY25 Q3FY25 Q4FY25 Q2FY25 Q3FY25 Q4FY25 remained healthy Residential Properties Industry GIL: Transport Vehicles Industry GIL: SME Industry GIL: across all 1.
Slide 14: Deposit
Deposit 8.4% RM’mil +2,708 ▲ +8.875 (+8.0%) 238,926 y-o-y (+7.7%) +6,910 (+9.6%) 220,433 Effective CASA Total Deposits CASA Fixed Deposit Market Deposit Total Deposits acquisition FY2024 FY2025 through digital FY2025 and community Individual outreach CASA Ratio Deposit Mix CASA ▲ 9.6% Individuals ▲
Slide 15: Liquidity & Capital
Liquidity & Capital Liquidity Ratios Capital Adequacy^ 120% 120% 120% 118% 117% 16.3% 16.2% 15.9% 16.3% Average LDR of 15.7% top 5 domestic banks Mar’25: 92.0% 14.3% 14.2% 14.2% Maintained healthy 14.0% 13.7% liquidity and capital 87.0% 87.0% 86.6% 87.9% 86.5% positions, supportive of business growt
Slide 16: Shareholder Value
Shareholder Value Return on Equity, Return on Assets & EPS Declared Dividend 11.8% 11.8% 11.4% * 47% 10.9% ▪ Commendable 11.2% 35% 32% 34% ROE and ROA 1.45% 96 amidst 1.43% 1.43% * uncertainties in global landscape 1.34% 1.40% 68 55 59 68 ▪ Deliver on 208 dividend promise, 205 43 38 rewarding 186 37
Slide 17: Performance of Associated Company: Bank of Chengdu
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for H1 ended 30 June 2025 (audited) Operating Income Profit After Tax Robust ROE 15.9% RMB'mil RMB'mil 11,585 12,270 6% 6,167 6,617 7% Solid Cost-to- 24.4% income Ratio H1FY24 H1FY25 H1FY24 H1FY25 Gross Loan GIL ratio
Slide 18: Closing Remarks
3 CLOSING REMARKS HLB FY2025 ended 30 June 2025 18
Slide 19: Sustainability Highlights
Sustainability Highlights Initiatives during the year Sustainable Financing In FY2025, the Bank announced a new target to mobilise RM20 billion in sustainable New Green Bonds Issuance financing over the next 5 years • Issuance of the Bank’s first Green Medium-Term Notes (“MTN”) of RM500 million in n
Slide 20: Reimagining Branches to Being a Digital Bank Plus Much More
Reimagining Branches to Being a Digital Bank Plus Much More July 2024: Launch of Iconic Branch, July 2025: Orchestrated the simultaneous delivering positive results launch of 4 next-generation branches Old Klang Road Cheras Light Street, Penang Kota Damansara Melaka ✓ Deposits ▲ 51% y-o-y ✓ CASA ▲ 5
Slide 21: Leveraging Strategic Alliance with Best-in-Class Partners and Industry Recognitions
Leveraging Strategic Alliance with Best-in-Class Partners and Industry Recognitions JANUARY 2025 MAY 2025 HLB Wins Three Awards at Asian Banking & Finance Retail Banking Awards, Affirming Our Transformative Journey Towards Becoming the Best Run Bank in Malaysia Best SME Bank in Malaysia Driving Inno
Slide 22: Management Guidance for FY2026
Management Guidance for FY2026 Actual FY2025* Target FY2026 Gross Loans Growth 7.8% 6.0%-7.0% Net Interest Margin 1.90% 1.80%-1.90% Maintaining Cost-to-Income Ratio 38.7% ~39.0% momentum: navigating core business growth GIL Ratio 0.54% <0.65% and NIM pressure Net Credit Cost 1 bps <10 bps CASA Mix 3
Slide 23: Closing Remarks
Closing Remarks ▪ Propelling core growth by firing our key profit engines of loans growth, NoII and CASA ▪ Deliver outcomes from value-driven alliances with world-class partners Delivering on the 3-5 Year Transformative ▪ Reaping benefits from strategic investments made in areas of talent acquisitio
Slide 24: Supplementary Information
4 SUPPLEMENTARY INFORMATION HLB FY2025 ended 30 June 2025 24
Slide 25: Group Performance
Group Performance Change % Change % RM’mil FY2024 FY2025 Q4FY25 (YoY) (YoY) Net interest income 4,669 4,927 5.5% 1,264 4.8% Non interest income 1,102 1,471 33.4% 356 31.4% Total income 5,771 6,398 10.9% 1,620 9.7% Operating expenses (2,339) (2,479) 6.0% (626) -0.4% Operating profit before allowances
Slide 26: HLISB Key Highlights
HLISB Key Highlights Change % Change % RM’mil FY2024 FY2025 Q4FY25 (YoY) (YoY) Total Net Income 951 1,230 29.3% 282 11.3% Operating expenses (312) (376) 20.8% (92) 16.0% Profit before taxation and zakat 640 854 33.5% 190 9.2% Profit after taxation and zakat 481 644 34.0% 144 10.3% Cost-to-income rat
Slide 27: 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
Hong Leong Bank Berhad — FY2025 Earnings Presentation on 6ix