Kuala Lumpur, 27 February 2026 – Hong Leong Capital Berhad (“HLCB”) delivered a solid first half performance for FY2026, reporting a 23% year-on-year increase in net profit after tax to RM36.7 million for the financial period ended 31 December 2025 (1H FY26), compared with RM29.9 million a year earlier.
The improved earnings were primarily driven by stronger contributions from the Treasury & Markets division of its investment banking arm, higher fee income from fund management, and improved returns from equity investments. Book value per share strengthened to RM4.37 as at 31 December 2025, up from RM4.26 a year earlier.
Chairman Tan Kong Khoon described the results as a reflection of HLCB’s diversified business model and disciplined execution amid a mixed market environment.
Investment Banking: Trading Strength Offsets Broader Market Weakness
Its wholly-owned investment banking subsidiary, Hong Leong Investment Bank Berhad (HLIB), recorded net profit after tax of RM20.4 million for 1H FY26, representing a 7% decline year-on-year, largely due to weaker stockbroking performance amid softer market activity.
However, the Investment Banking division’s profit before tax surged more than threefold to RM12.1 million, supported by strong trading performance from the Treasury & Markets segment. The division capitalised on trading opportunities and optimised funding costs, boosting both net interest income and trading income.
In contrast, the Stockbroking division reported a 41% year-on-year decline in PBT to RM14.7 million, reflecting lower Bursa Malaysia trading volumes and softer retail and institutional participation. Market share (excluding foreign participation) moderated to 5.62% from 5.97% previously.
Despite the softer trading environment, HLIB continued digital enhancements, including:
- Launch of its e-IPO service in November 2025, facilitating subscriptions for 10 IPOs.
- Introduction of a unified local and foreign trading application in January 2026, allowing seamless access to 10 foreign markets through a single account.
HLIB’s capital position remained robust, with Common Equity Tier 1, Tier 1 and Total Capital Ratios standing at 37.3%, 37.4% and 46.5% respectively.
Fund Management: AUM Growth Supports Earnings
HLCB’s fund management arm, comprising Hong Leong Asset Management Bhd (HLAM) and Hong Leong Islamic Asset Management Sdn Bhd (HLISAM), recorded net profit after tax of RM3.4 million, up 7% year-on-year.
Average assets under management (AUM) rose to RM14.5 billion as at end-December 2025, compared with RM11.3 billion a year earlier. Growth was largely driven by inflows into Fixed Income and Money Market funds.
Islamic funds continued to gain traction, expanding 15% to RM2.2 billion, supported by strong demand for Shariah-compliant fixed income products.
The launch of the Hong Leong Asia Value Bond Fund in November 2025 added RM838 million in AUM, with strategic partnerships alongside Lombard Odier and Amundi Singapore collectively garnering RM922 million in foreign-denominated fund AUM.
ESG Milestone: 4-Star FTSE Russell Rating
On the sustainability front, HLCB elevated its FTSE Russell ESG Rating to 4.3 from 2.9, earning a 4-star rating — the highest tier achievable under the framework.
HLIB expanded its green bond holdings to RM275 million from RM225 million previously, focusing on sectors such as renewable energy and sustainable transport.
Meanwhile, sustainable investment products under HLAM recorded growth:
- Hong Leong Global ESG Fund increased 9.6% to RM13.04 million.
- Hong Leong Global Shariah ESG Fund rose 20.6% to RM2.17 million.
Outlook: Cautiously Optimistic
Looking ahead, Tan said the Group remains cautiously optimistic entering the second half of FY2026. Malaysia’s GDP is projected to grow 4.5% in 2026, supported by domestic resilience despite external headwinds including trade tensions and potential tariff impacts.
Bursa Malaysia is expected to benefit from stronger corporate earnings and potential foreign inflows, while bond and sukuk issuance activity is projected to remain robust amid infrastructure rollouts and stable interest rates.
HLCB intends to continue enhancing its product suite through strategic partnerships, scaling artificial intelligence (AI) and digital capabilities, and expanding affluent and SME client segments within its stockbroking division.
