Kuala lumpur: Hong Leong Financial Group Bhd (HLFG) has announced an increase in its net profit for the financial year ending June 30, 2025 (FY2025), reaching RM3.25 billion compared to RM3.19 billion in the preceding year, primarily due to enhanced performance in its commercial banking and insurance sectors.

According to BERNAMA News Agency, HLFG's revenue also saw a rise, reaching RM7.21 billion, up from RM6.65 billion in the previous year. In a filing with Bursa Malaysia, HLFG's president and CEO, Tan Kong Khoon, attributed the improved performance to an 8.5% year-on-year (y-o-y) growth in topline, driven by loan growth surpassing industry averages, an expansion in net interest margins, and a robust 18.1% y-o-y increase in non-interest income (NoII).

HLFG announced a final dividend of 52 sen per share, culminating in a total dividend of 72 sen per share for FY2025. This marks a 33.3% increase from the prior year, bringing the total dividend payout for the fiscal year to RM827 million.

Hong Leong Bank Bhd (HLB), a key division of HLFG, reported a rise in its net profit to RM4.27 billion for FY2025, up from RM4.19 billion, supported by higher net income and increased write-back of impairment losses on loans. HLB's total income for FY2025 grew by 10.9% y-o-y to RM6.39 billion, driven by sustained growth in both loans and financing portfolio, alongside contributions from non-interest income.

In a separate filing, HLB's group managing director and CEO, Kevin Lam, highlighted a 21.4% y-o-y growth in the pre-Bank of Chengdu (BOCD) stake acquisition profit, reaching RM4.30 billion, fueled by robust topline expansion, efficient cost management, and a one-off release of management overlay allowance (MOA) in the previous quarter. Excluding the MOA release, the normalised pre-BOCD profit still showed a commendable 10.1% growth to RM3.90 billion.

Lam noted that gross loans, advances, and financing continued their growth trajectory, with a 7.8% y-o-y increase to RM210.1 billion. This growth was predominantly led by strong performance in key segments such as mortgages, auto loans, SME, and commercial banking, as well as significant gains in key overseas markets. Customer deposits for FY2025 rose 8.4% y-o-y to RM238.9 billion, with the Current Account and Savings Account (CASA) increasing by 9.6% y-o-y to RM78.5 billion.

For the fourth quarter, HLB's net profit rose to RM1.08 billion from RM1.03 billion, with revenue increasing to RM1.62 billion from RM1.47 billion previously. HLB's board declared a final dividend of 68 sen per share, bringing the total dividend to 96.0 sen per share for FY2025, an increase of 28 sen compared to the previous year. This translates to a higher dividend payout ratio of 46.6%, a significant rise from 33.6% last year.

Meanwhile, HLFG's investment banking and asset management division, Hong Leong Capital Bhd (HLCB), reported a 40.3% y-o-y decline in its FY2025 net profit to RM58.44 million, down from RM97.91 million in the previous financial year. The decline was primarily due to lower equity investment returns and reduced contributions from stockbroking and fund management businesses. HLCB's revenue also decreased to RM348.36 million from RM400.38 million previously. The HLCB board declared a final dividend of 19 sen per ordinary share, amounting to total dividends of RM46.9 million for FY2025.