Kuala lumpur: Hong Leong Bank Bhd (HLB) reported a slightly higher net profit of RM1.09 billion for the first quarter ended September 30, 2025, compared with RM1.089 billion recorded in the same period a year ago. Revenue for the quarter under review rose to RM1.68 billion from RM1.59 billion previously.
According to BERNAMA News Agency, HLB group managing director and chief executive officer Kevin Lam noted that total income for the first quarter increased by 5.4% year-on-year to RM1.68 billion. This growth was supported by an expansion in the loans/financing portfolio and sustained non-interest income.
Gross loans, advances, and financing continued their strong growth trajectory, rising 9.1% year-on-year to RM211.8 billion. This increase was driven by growth in key segments such as mortgages, auto loans, Small and Medium Enterprises (SME), and commercial banking, as well as in key overseas markets. Domestic loans and financing grew 9.0% year-on-year, outperforming the industry growth rate of 5.5% year-on-year, while residential mortgages rose 6.4% to RM102.1 billion, supported by a healthy loans/financing pipeline.
Meanwhile, transport vehicle loans/financing exhibited a double-digit growth rate of 11.4% year-on-year to RM24.8 billion, benefiting from strategic partnerships with leading automotive brands and electric vehicle manufacturers, complemented by competitive financing packages. Loans to domestic business enterprises increased 5.7% year-on-year to RM67.9 billion.
“Our commitment to the SME sector remains steadfast, with loans/financing to SMEs rising 8.7% year-on-year to RM40.4 billion, including a 10.5% increase in our community SME banking portfolio. This is underpinned by our dedication to elevating customer experience, leveraging digital transformation and process innovation to deliver an enhanced range of financial solutions,” Lam stated.
Loans from overseas operations increased 10.1% year-on-year, led by growth of 15.1% and 6.2% year-on-year in Singapore and Vietnam, respectively. Customer deposits for the first quarter rose 7.7% year-on-year to RM236.3 billion. Correspondingly, CASA (current account savings account) improved notably by 9.1% year-on-year to RM76.8 billion, translating to a CASA ratio of 32.5%.
“This performance was fueled by a dedicated community deposit acquisition strategy and the delivery of differentiated cash management solutions for our customers,” Lam added.