Hong Leong Financial Group’s 1Q FY2025 PATMI Jumps 14.3% as Earnings Surge

KUALA LUMPUR, 30 SEPTEMBER 2026 —

Kuala Lumpur, 26 February 2025 – Hong Leong Financial Group Berhad (HLFG) announced today that its profit before tax (PBT) for the first half of financial year 2025 (1H FY25), ended 31 December 2024, was driven by a robust performance in non-interest income, which surged 30.4% year-on-year.

The Group’s President and Chief Executive Officer, Tan Kong Khoon, stated that the results demonstrate a solid performance for the Group, underpinned by the successful execution of top-line growth initiatives. This financial milestone places HLFG within the top quartile of the industry, with its non-interest income (NoII) ratio improving to 32.7%.

The strength of the Group’s financial position is further evidenced by its disciplined management of asset quality, capital, and liquidity, which contributed significantly to the positive results. In recognition of this performance, the Group proposed an all-cash interim dividend of 20 sen per share. This dividend payout amounts to RM227.7 million, reflecting the Group’s commitment to returning value to shareholders while maintaining a strong balance sheet.

The announcement highlights the resilience of the Malaysian banking sector, with HLFG’s commercial banking arm reporting a PBT of RM2,740 million, a 6.0% increase year-on-year.

Tan Kong Khoon emphasized that the Group’s strategic focus on non-interest income has yielded encouraging results, specifically citing a 17.6% year-on-year growth in fee income. This growth is attributed to the Group’s ability to harness its integrated financial ecosystem, leveraging distribution strength across various business divisions to create cross-selling opportunities.

The CEO noted that these collective efforts are central to the Group’s pursuit of long-term value creation, ensuring that the financial institution remains competitive in a rapidly evolving market landscape.

Looking ahead, the Group anticipates that Malaysia’s economy will remain favourable, with projections indicating an expansion of 4.5% to 5.5% in 2025. This growth is expected to be driven by resilient private consumption as well as sustained domestic and inbound investments. However, Tan Kong Khoon cautioned that the Group remains vigilant regarding potential downside risks arising from evolving geopolitical tensions.

He noted that escalating protectionist policies could lead to trade disruptions, inflationary pressures, and tighter financial conditions, necessitating a proactive approach to risk management.

To mitigate these risks and enhance its market position, HLFG is committed to strengthening its business franchise through strategic partnerships. A key development in this area is the commercial bank’s new collaboration with WeBank Technology Services, a subsidiary of WeBank. This partnership is aimed at providing an enhanced customer experience and solidifying the bank’s position as a digital-first financial institution.

The integration of advanced digital technologies is expected to streamline operations and improve service delivery, aligning with the Group’s broader digital transformation strategy.

The Group’s performance across its various segments shows distinct trends. While commercial banking and insurance posted strong growth, the investment banking segment faced a decline. The insurance division reported a PBT of RM394 million, representing a 28.8% year-on-year increase. In contrast, the investment banking segment recorded a PBT of RM41 million, a decrease of 12.1% year-on-year.

This divergence highlights the varying market conditions affecting different financial services, with insurance benefiting from strong demand and investment banking facing headwinds.

HLFG continues to make significant strides in its Environmental, Social, and Governance (ESG) journey, adopting a Group-Wide approach to sustainability. The commercial bank received its fourth consecutive "Sustainable Energy Financing by a Domestic & Islamic Bank" award at the prestigious National Energy Awards 2024 in January 2025. This accolade recognizes the Bank’s exceptional dedication to providing well-structured financing packages for over 4,000 energy-related projects.

The award underscores the bank’s role in supporting the transition to a low-carbon economy through targeted financial products.

On the investment banking and asset management front, Hong Leong Capital Berhad (HLCB) has become a signatory to the Partnership for Carbon Accounting Financials (PCAF). This move signifies alignment with international best practices in the financial sector and reinforces the Group’s role in supporting Malaysia’s net-zero ambitions. By adopting standardized methodologies for measuring and managing the carbon footprint of loans and investments, HLCB is positioning itself at the forefront of sustainable finance in the region.

The Group remains committed to integrating ESG considerations and strengthening its sustainability efforts across all operating companies. This holistic approach is designed to deliver long-term value for all stakeholders, including shareholders, customers, employees, and the communities in which the Group operates. The emphasis on ESG is not merely a compliance exercise but a core component of the Group’s business strategy, driving innovation and creating new opportunities for growth in sustainable finance.

The financial results for 1H FY25 reflect a period of strong execution and strategic focus for HLFG. The combination of top-line growth, disciplined risk management, and a clear ESG strategy has positioned the Group well for the future. As Malaysia’s economy continues to expand, HLFG is poised to capitalize on opportunities in both traditional and emerging financial services, while navigating the complexities of a changing global landscape.

In conclusion, the Group’s performance in the first half of FY25 demonstrates its ability to adapt and thrive in a dynamic market environment. The proposed interim dividend, the strategic partnership with WeBank Technology Services, and the continued focus on ESG initiatives all point to a Group that is well-prepared for the challenges and opportunities ahead.

HLFG’s leadership remains confident in the Group’s ability to deliver sustained value to shareholders and contribute to the broader economic development of Malaysia.

Related: Hong Leong Financial Group Berhad (HLFG) · Tan Kong Khoon · Kuala Lumpur