Hong Leong Bank Berhad announced its results for the first quarter with net profit after tax improving 5.8% year-on-year ("y-o-y") to RM1 billion. Gross loans and financing continues to maintain strong growth momentum of 6.9% y-o-y to RM194.2 billion.
The group's strong asset quality metrics sustained with Gross Impaired Loan ("GIL") ratio of 0.54% and Loan Impairment Coverage ("LIC") ratio of 145.5%. Prudent capital and liquidity positions with Common Equity Tier 1 ("CET 1"), Tier 1 and Total Capital ratios stood at 13.2%, 14.2% and 16.2% respectively.
Kevin Lam, Group Managing Director and Chief Executive Officer of HLB commented, "Our profit after tax for Q1FY25 grew 5.8% y-o-y to RM1,090 million, underpinned by robust loans/financing growth, improved non-interest income and stable contributions from our associates. Correspondingly, we delivered an encouraging return on equity ("ROE") of 11.8%.
Our gross loans and financing portfolio grew 6.9% y-o-y to RM194.2 billion, contributed by expansion in our mortgage, auto loans, SME and commercial banking segments. We continue to monitor our asset quality in line with our prudent risk management culture and tight credit underwriting process, ending the first quarter with a solid GIL ratio of 0.54% and LIC ratio of 145.5%."
