Hong Leong Bank Berhad (HLB) has announced a commendable financial performance for the fiscal year ending 30 June 2024 (FY2024), with a 9.9% year-on-year (y-o-y) increase in net profit after tax, reaching RM4,196 million.
This growth was supported by a 7.3% y-o-y expansion in gross loans and financing, amounting to RM194.9 billion, driven by strong performance in mortgage, auto loans, SME, and commercial banking segments, as well as growth in key overseas markets.
The bank’s asset quality remains robust, with an improved Gross Impaired Loan (GIL) ratio of 0.53% and a Loan Impairment Coverage (LIC) ratio of 155.0%. HLB’s capital and liquidity positions are healthy, with Common Equity Tier 1 (CET 1), Tier 1, and Total Capital ratios at 13.3%, 14.3%, and 16.3%, respectively.
HLB’s total income for FY2024 grew by 1.5% y-o-y to RM5,771 million, with net interest income increasing by 2.6% y-o-y to RM4,669 million. Non-interest income also saw a strong rise of 26.5% in Q4FY24, reaching RM271 million, driven by higher fee income from wealth management and credit card-related fees, alongside gains in foreign exchange.
Operating expenses were prudently managed, leading to a cost-to-income ratio of 40.5%. The bank achieved an operating profit after allowances of RM3,545 million, with a profit before tax of RM5,134 million, reflecting an 11.0% y-o-y increase.
HLB maintained a solid funding and liquidity position, with customer deposits growing by 4.1% y-o-y to RM220.4 billion. The bank also improved its CASA ratio to 32.5% through successful community deposit acquisition initiatives.
The bank’s commitment to environmental, social, and governance (ESG) integration was highlighted by the introduction of various sustainability initiatives. These include monthly refilling sessions for employees to reduce plastic waste and the newest edition of the HLB Launchpad, aimed at reinforcing the circular economy.
Looking ahead, Kevin Lam, HLB’s Group Managing Director and CEO, expressed optimism about Malaysia’s economic growth, expecting it to remain favorable in the second half of 2024.
The bank remains focused on executing its Three-Five Year Strategic Plan, with a commitment to delivering sustainable outcomes and driving carbon neutrality in partnership with stakeholders.
