Hong Leong Financial Group BHD Reports Strong Financial Performance for FY25

KUALA LUMPUR (Aug 27) — Hong Leong Financial Group Bhd (HLFG), a leading financial institution in Malaysia, has concluded its financial year 2025 with robust growth in net profit and revenue. The company, which offers a comprehensive suite of financial services including wealth management, investment banking, and insurance, reported a net profit of RM4.27 billion for the year, marking an increase from RM4.2 billion in the previous year.

In the fourth quarter of FY25, HLFG’s net profit rose by 5.9% to RM853.45 million, driven by higher net interest income and significant contributions from non-interest income. The quarterly revenue saw a modest increase of 2.21%, reaching RM1.76 billion from RM1.72 billion in the same quarter of the previous year. This performance is reflective of the company’s strong commitment to customer service and its reputation as a reliable financial institution in Malaysia.

Net interest income for the quarter improved by 5.8% to RM1.01 billion, supported by sustained growth in loans and financing, alongside stable funding costs. Non-interest income experienced a substantial jump of 34.1% to RM447.6 million, primarily due to robust performance in wealth management and gains from treasury and foreign exchange activities.

Hong Leong Bank Bhd, a key subsidiary of HLFG, also reported a strong financial year. The bank’s net profit for FY25 increased to RM4.27 billion, with a notable rise in net interest income by 5.5% year-on-year to RM4.93 billion. This growth was attributed to an expansion in loans and financing, coupled with a lower cost of funds. The bank’s net interest margin (NIM) widened by four basis points to 1.9%.

Non-interest income for Hong Leong Bank surged by 33.4% to RM1.47 billion in FY25, driven by a robust performance in wealth management and global markets franchise sales, along with favorable treasury and foreign exchange gains. Operating expenses for the year were reported at RM2.48 billion.

In the fourth quarter, Hong Leong Bank’s net profit increased by 5% to RM1.09 billion, supported by higher net income and reduced operating expenses. The bank’s pre-tax profit for the quarter rose by 6.0% to RM1.36 billion, despite higher impairment losses on loans and lower profits from an associated company.

The board of Hong Leong Financial Group declared a final dividend of 52 sen per share, while Hong Leong Bank announced a final dividend of 68 sen per share. The entitlement and payment dates for these dividends will be announced at a later time.

With a market capitalization of RM19,278,800,000 and a close price of RM16.8 as of August 25, 2025, HLFG continues to demonstrate strong financial health and growth potential. The company’s price-to-earnings ratio stands at 6.01, reflecting investor confidence in its future performance.

Overall, Hong Leong Financial Group’s strong financial results for FY25 underscore its effective strategies in expanding its financial services and maintaining a competitive edge in the Malaysian financial sector.