Kuala Lumpur, 26 May 2026 – Hong Leong Bank Berhad delivered a resilient performance for the nine months ended 31 March 2026, with profit after tax rising 3.3% year-on-year to RM3.29 billion, supported by sustained loans and financing growth, stable margins and healthy asset quality.
The bank’s gross loans, advances and financing expanded 8.4% year-on-year to RM218.2 billion, reflecting continued demand across mortgages, auto loans, SME and commercial banking, as well as key overseas markets. Asset quality remained strong, with the gross impaired loan ratio holding at 0.60%, underscoring the bank’s disciplined credit management despite a more uncertain operating backdrop.
Group Managing Director and Chief Executive Officer Kevin Lam said Hong Leong Bank remained resilient amid ongoing geopolitical uncertainties, supported by top-line growth, strategic cost management and healthy asset quality. He noted that the bank continued to provide support to customers facing disruption while maintaining prudent risk management.
For 9MFY26, total income rose 3.2% year-on-year to RM4.93 billion, supported by loans and financing portfolio expansion as well as prudent funding cost management. Net interest margin remained stable at 1.83%, while non-interest income increased 2.2%, driven by higher wealth management activities and global markets franchise sales.
Hong Leong Bank also maintained strong operational efficiency. Operating expenses declined 1.1% year-on-year despite higher total income, enabling the bank to deliver positive operating leverage and a cost-to-income ratio of 37.2%. Operating profit before allowances rose 6.0% to RM3.10 billion.
The bank said the more moderate growth in profit after tax was partly due to lower profit contribution from its associated company, Bank of Chengdu Co Ltd, following the natural dilution of HLB’s stake after the completion of convertible bond conversion, as well as the foreign-exchange translation impact from a stronger ringgit.
Domestic loans and financing grew 8.5% year-on-year, ahead of the industry’s 5.4% growth rate. Residential mortgages increased 6.4% to RM105.4 billion, supported by a healthy financing pipeline. Transport vehicle loans and financing rose 9.4% to RM25.7 billion, driven by an expanding dealer footprint and strategic alliances across the automotive and electric vehicle sectors.
Loans to domestic business enterprises increased 8.3% to RM71.1 billion, while SME loans and financing expanded 9.5% to RM41.9 billion. Within the SME segment, community SME banking grew 10.8% to RM16.3 billion, supported by active customer acquisition and digital solutions tailored to client needs.
Overseas operations also contributed to the bank’s growth, with loans expanding 7.2% year-on-year. Singapore and Vietnam recorded strong growth of 19.8% and 14.3% respectively in local currency terms.
Hong Leong Bank’s funding and liquidity positions remained prudent. Customer deposits grew 8.3% year-on-year to RM243.5 billion, while current account and savings account balances rose 14.1% to RM77.9 billion. This lifted the CASA ratio to 32.0%. The loans-to-deposits ratio stood at 88.0%, while the rolling 12-month average liquidity coverage ratio was 129.0%, well above regulatory requirements.
The bank’s capital position also remained healthy, with Common Equity Tier 1, Tier 1 and total capital ratios of 12.4%, 13.3% and 15.4% respectively as at 31 March 2026. Loan impairment coverage stood at 81.1%, rising to 151.1% when securities held against impaired loans are included, and 236.9% with regulatory reserves.
HLB was also named Best Managed Bank in Malaysia at The Asian Banker Global Leadership Achievement Awards 2026, while Lam was named Best Bank CEO in Malaysia. The bank attributed the recognition to its transformation plan, branch innovation, cross-functional systems, rebranding initiatives and AI integration.
Looking ahead, Lam said Malaysia’s economy is expected to remain resilient despite external uncertainties and geopolitical risks, supported by domestic consumption, investment initiatives, artificial intelligence, electrical and electronics demand, data centre investments and favourable commodity prices. He said the bank remains cautiously optimistic that Malaysia can grow at a pace of 4.0% to 5.0% this year.
The Ledger Asia Insights
Hong Leong Bank’s 9MFY26 results show a lender benefiting from disciplined execution rather than aggressive risk-taking. The key positives are loan growth ahead of industry levels, strong CASA expansion, stable net interest margin and a low gross impaired loan ratio of 0.60%.
For investors, HLB’s performance reinforces its reputation as an efficiency-focused bank. A cost-to-income ratio of 37.2% remains a competitive strength, while positive operating leverage shows that income growth is being converted effectively into operating profit.
The main watchpoint is external volatility. Geopolitical risks, inflationary pressure and currency movements could affect customer sentiment and funding conditions. However, HLB’s strong liquidity, asset quality and capital buffers provide resilience. Its deeper push into wealth management, AI-enabled banking, lifestyle partnerships and Islamic wealth stewardship also suggests the bank is positioning itself for a more integrated financial services model beyond traditional lending.
