Buy Or Sell Opportunity • Jun 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.5% to RM20.88. The fair value is estimated to be RM26.19, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.8% over the last 3 years. Earnings per share has grown by 4.6%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 14% in the next 2 years. Reported Earnings • May 30
Third quarter 2026 earnings: EPS and revenues miss analyst expectations Third quarter 2026 results: EPS: RM0.50 (up from RM0.46 in 3Q 2025). Revenue: RM1.54b (down 21% from 3Q 2025). Net income: RM1.03b (up 8.7% from 3Q 2025). Profit margin: 67% (up from 49% in 3Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 8.2%. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 3% per year. Declared Dividend • Mar 01
First half dividend increased to RM0.30 Dividend of RM0.30 is 7.1% higher than last year. Ex-date: 13th March 2026 Payment date: 27th March 2026 Dividend yield will be 4.2%, which is lower than the industry average of 5.1%. Sustainability & Growth Dividend is well covered by earnings (47% payout ratio) and is expected to be well covered in 3 years' time (46% forecast payout ratio). The dividend has increased by an average of 8.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 28
Second quarter 2026 earnings: EPS exceeds analyst expectations Second quarter 2026 results: EPS: RM0.57 (up from RM0.56 in 2Q 2025). Revenue: RM1.63b (flat on 2Q 2025). Net income: RM1.17b (up 1.8% from 2Q 2025). Profit margin: 72% (up from 71% in 2Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.6%. Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 4% per year. Reported Earnings • Nov 28
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: RM0.53 (in line with 1Q 2025). Revenue: RM1.65b (up 3.6% from 1Q 2025). Net income: RM1.09b (flat on 1Q 2025). Profit margin: 66% (down from 69% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates by 2.2%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Oct 01
Upcoming dividend of RM0.68 per share Eligible shareholders must have bought the stock before 08 October 2025. Payment date: 22 October 2025. Payout ratio is a comfortable 46% but the company is not cash flow positive. Trailing yield: 4.6%. Lower than top quartile of Malaysian dividend payers (5.5%). Lower than average of industry peers (5.7%). Reported Earnings • Sep 27
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: RM2.09 (up from RM2.05 in FY 2024). Revenue: RM6.78b (up 15% from FY 2024). Net income: RM4.27b (up 1.8% from FY 2024). Profit margin: 63% (down from 71% in FY 2024). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 1.90% (up from 1.86% in FY 2024). Cost-to-income ratio: 38.7% (down from 40.5% in FY 2024). Non-performing loans: 0.54% (up from 0.53% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.0%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Sep 25
Hong Leong Bank Berhad, Annual General Meeting, Oct 27, 2025 Hong Leong Bank Berhad, Annual General Meeting, Oct 27, 2025, at 10:00 Singapore Standard Time. Location: wau bulan 2, level 2, sofitel kuala lumpur damansara, no. 6, jalan damanlela, bukit damansara, 50490 kuala lumpur Malaysia Reported Earnings • Aug 28
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: RM2.09 (up from RM2.05 in FY 2024). Revenue: RM6.78b (up 15% from FY 2024). Net income: RM4.27b (up 1.8% from FY 2024). Profit margin: 63% (down from 71% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.0%. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Aug 20
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at RM19.90. The fair value is estimated to be RM24.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years. Earnings per share has grown by 9.8%. For the next 3 years, revenue is forecast to grow by 3.6% per annum. Earnings are also forecast to grow by 6.4% per annum over the same time period. Board Change • Jun 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent & Non Executive Director George Ratilal was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 29
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: RM0.46 (down from RM0.51 in 3Q 2024). Revenue: RM1.95b (up 33% from 3Q 2024). Net income: RM946.7m (down 9.4% from 3Q 2024). Profit margin: 49% (down from 72% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Mar 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.1% to RM20.14. The fair value is estimated to be RM25.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 5.8% per annum. Earnings are also forecast to grow by 6.6% per annum over the same time period. Buy Or Sell Opportunity • Mar 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.8% to RM20.04. The fair value is estimated to be RM25.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Earnings per share has grown by 11%. For the next 3 years, revenue is forecast to grow by 5.9% per annum. Earnings are also forecast to grow by 6.7% per annum over the same time period. Reported Earnings • Feb 27
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: RM0.56 (up from RM0.53 in 2Q 2024). Revenue: RM1.63b (up 11% from 2Q 2024). Net income: RM1.15b (up 5.5% from 2Q 2024). Profit margin: 71% (down from 74% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 6.4%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 26
Hong Leong Bank Berhad to Declare an Interim Single Tier Dividend for the Financial Year Ending 30 June 2025 The Board of Directors of Hong Leong Bank Berhad to declare an interim single tier dividend of 28.0 sen per share for the financial year ending 30 June 2025. Announcement • Jan 18
Hong Leong Bank Appoints Jeffrey Yap as Head of Regional Wealth Management Hong Leong Bank (HLB) has announced the appointment of Jeffrey Yap, a seasoned investment professional with over 28 years of experience in global financial markets, as Head of Regional Wealth Management, effective immediately. This appointment underscores HLB's commitment to strengthening its wealth management capabilities and expanding its presence in the region. At HLB, Jeffrey will spearhead the Bank's wealth management strategy, focusing on driving sustainable profit growth by expanding the business with comprehensive solutions, including Treasury, Investment, and Bancassurance products. He will also prioritize building the Private Banking segment in Singapore and Malaysia, delivering exceptional client service with tailored wealth solutions for all client segments, and leading and developing the wealth team across HLB's operational geographies. Reported Earnings • Nov 29
First quarter 2025 earnings: EPS in line with analyst expectations despite revenue beat First quarter 2025 results: EPS: RM0.53 (up from RM0.50 in 1Q 2024). Revenue: RM1.59b (up 10% from 1Q 2024). Net income: RM1.09b (up 5.8% from 1Q 2024). Profit margin: 69% (down from 71% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Oct 22
Upcoming dividend of RM0.43 per share Eligible shareholders must have bought the stock before 29 October 2024. Payment date: 19 November 2024. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Malaysian dividend payers (4.8%). Lower than average of industry peers (4.9%). Reported Earnings • Sep 29
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: RM2.05 (up from RM1.86 in FY 2023). Revenue: RM5.88b (up 5.6% from FY 2023). Net income: RM4.20b (up 9.9% from FY 2023). Profit margin: 71% (up from 69% in FY 2023). The increase in margin was primarily driven by higher revenue. Net interest margin (NIM): 1.86% (down from 1.98% in FY 2023). Cost-to-income ratio: 40.5% (up from 39.3% in FY 2023). Non-performing loans: 0.53% (down from 0.57% in FY 2023). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 2.5%. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Sep 26
Hong Leong Bank Berhad, Annual General Meeting, Oct 28, 2024 Hong Leong Bank Berhad, Annual General Meeting, Oct 28, 2024, at 10:00 Singapore Standard Time. Location: wau bulan 2, level 2, sofitel kuala lumpur damansara, no. 6, jalan damanlela, bukit damansara, 50490 kuala lumpur Malaysia Reported Earnings • Aug 30
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: RM2.05 (up from RM1.86 in FY 2023). Revenue: RM5.88b (up 5.6% from FY 2023). Net income: RM4.20b (up 9.9% from FY 2023). Profit margin: 71% (up from 69% in FY 2023). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 2.5%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Aug 29
Hong Leong Bank Berhad Declares Final Single Tier Dividend for the Financial Year Ended 30 June 2024 The Board of Directors of Hong Leong Bank Berhad declared a final single tier dividend of 43 sen per share for the financial year ended 30 June 2024. Announcement • Jul 15
Hong Leong Bank Berhad Announces Resignation of Puan Fa'izah Binti Mohamed Amin as Independent and Non Executive Director Hong Leong Bank Berhad announced resignation of Puan Fa'izah Binti Mohamed Amin, a 56 years-old, as Independent and Non Executive Director, effective 15 July 2024. Reason: Being considered for a Board position in another financial institution. Reported Earnings • Jun 04
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: RM0.51 (up from RM0.45 in 3Q 2023). Revenue: RM1.46b (up 7.6% from 3Q 2023). Net income: RM1.04b (up 12% from 3Q 2023). Profit margin: 72% (up from 69% in 3Q 2023). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) exceeded analyst estimates by 4.0%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 07
Upcoming dividend of RM0.25 per share Eligible shareholders must have bought the stock before 14 March 2024. Payment date: 26 March 2024. Payout ratio is a comfortable 33% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Malaysian dividend payers (4.8%). Lower than average of industry peers (5.3%). Declared Dividend • Mar 01
First half dividend increased to RM0.25 Dividend of RM0.25 is 19% higher than last year. Ex-date: 14th March 2024 Payment date: 26th March 2024 Dividend yield will be 3.2%, which is lower than the industry average of 5.1%. Sustainability & Growth Dividend is well covered by earnings (33% payout ratio) and is expected to be well covered in 3 years' time (34% forecast payout ratio). The dividend has increased by an average of 2.7% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 29
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: RM0.53 (up from RM0.51 in 2Q 2023). Revenue: RM1.47b (flat on 2Q 2023). Net income: RM1.09b (up 4.4% from 2Q 2023). Profit margin: 74% (up from 71% in 2Q 2023). Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 28
Hong Leong Bank Berhad Declares an Interim Single Tier Dividend for the Financial Year Ending 30 June 2024 The Board of Directors of Hong Leong Bank Berhad declared an interim single tier dividend of 25.0 sen per share for the financial year ending 30 June 2024. Reported Earnings • Dec 01
First quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2024 results: EPS: RM0.50 (up from RM0.48 in 1Q 2023). Revenue: RM1.44b (down 1.2% from 1Q 2023). Net income: RM1.03b (up 4.9% from 1Q 2023). Profit margin: 71% (up from 67% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 7.5%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Oct 24
Upcoming dividend of RM0.38 per share at 3.0% yield Eligible shareholders must have bought the stock before 31 October 2023. Payment date: 22 November 2023. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of Malaysian dividend payers (5.3%). Lower than average of industry peers (5.3%). Reported Earnings • Oct 01
Full year 2023 earnings: EPS in line with expectations, revenues disappoint Full year 2023 results: EPS: RM1.86 (up from RM1.61 in FY 2022). Revenue: RM5.57b (up 2.8% from FY 2022). Net income: RM3.82b (up 16% from FY 2022). Profit margin: 69% (up from 61% in FY 2022). The increase in margin was primarily driven by lower expenses. Net interest margin (NIM): 1.98% (down from 2.14% in FY 2022). Cost-to-income ratio: 39.3% (up from 37.5% in FY 2022). Non-performing loans: 0.57% (up from 0.49% in FY 2022). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Sep 28
Hong Leong Bank Berhad, Annual General Meeting, Oct 30, 2023 Hong Leong Bank Berhad, Annual General Meeting, Oct 30, 2023, at 14:30 Singapore Standard Time. Location: Wau Bulan 2, Level 2 Sofitel Kuala Lumpur Damansara No. 6, Jalan Damanlela, Bukit Damansara 50490 Kuala Lumpur Kuala Lumpur Malaysia Agenda: To approve the payment of Director Fees of MYR 1,568,614 for the financial year ended 30 June 2023 to be divided amongst the Directors in such manner as the Directors may determine and Directors' Other Benefits of up to an amount of MYR 250,000 from the 82nd AGM to the 83rd AGM of the Bank; to re-elect YBhg Tan Sri Quek Leng Chan as a Director pursuant to the Bank's Constitution;to re-elect YBhg Datuk Manharlal A/L Ratilal as a Director pursuant to the Bank's Constitution;to re-appoint PricewaterhouseCoopers PLT as Auditors of the Bank and to authorize the Directors to fix their remuneration; and to approve the Authority to Directors to Allot Shares and Waiver of Pre-emptive Rights; and to consider other matters. Announcement • Aug 31
Hong Leong Bank Berhad Declares Final Single Tier Dividend for the Financial Year Ended 30 June 2023 The board of directors of Hong Leong Bank Berhad declared a final single tier dividend of 38 sen per share for the financial year ended 30 June 2023. Reported Earnings • Aug 31
Full year 2023 earnings: EPS in line with expectations, revenues disappoint Full year 2023 results: EPS: RM1.86 (up from RM1.61 in FY 2022). Revenue: RM5.57b (up 2.8% from FY 2022). Net income: RM3.82b (up 16% from FY 2022). Profit margin: 69% (up from 61% in FY 2022). The increase in margin was primarily driven by lower expenses. Net interest margin (NIM): 1.98% (down from 2.14% in FY 2022). Cost-to-income ratio: 39.3% (up from 37.5% in FY 2022). Non-performing loans: 0.57% (up from 0.49% in FY 2022). Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 11% per year. Announcement • Jul 04
Hong Leong Bank Launches First Bank-Backed Earned Wage Access Solution, Innovating Salary Advances for Employers and Employees Hong Leong Bank announced the launch of the HLB Salary Advance Employer Solution in partnership with Paywatch Malaysia Sdn Bhd ("Paywatch"), making it the first bank in Southeast Asia to back an Earned Wage Access solution. This innovative EWA solution aims to empower Malaysians by providing them with easy access to their earned salaries, and is set to transform the way businesses offer and manage their advanced salary payouts. The HLB Salary Advance Employer Solution is a simple, seamless digital platform that enables employees to withdraw up to 25% of their monthly earned salaries, whenever the need arises. There are no interest or late charges, except for a nominal service fee of MYR 2 per withdrawal. According to a recent survey conducted by the Bank which involved 420 Malaysian employees and employers, it was found that respondents desire easy access to their wages and better financial control, particularly in times of emergency. The survey also revealed that employees often feel uncomfortable requesting a salary advance from their employers due to emotional factors. On the other hand, employers ranked the ability to support their employees with flexible and quick access to their salaries during emergencies as a top priority in salary management. Employers also cited other benefits of a fully-automated EWA solution, such as improving cash flow management, reducing paperwork, and increasing employee satisfaction. On the employers' end, the solution is designed to be seamless, secure, and convenient. There is no cash flow impact, no deposit required, and no integration with any company software. Reported Earnings • Jun 01
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: RM0.25 (down from RM0.38 in 3Q 2022). Revenue: RM1.13b (down 13% from 3Q 2022). Net income: RM521.0m (down 34% from 3Q 2022). Profit margin: 46% (down from 61% in 3Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 1.4%. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 07
Upcoming dividend of RM0.21 per share at 2.8% yield Eligible shareholders must have bought the stock before 14 March 2023. Payment date: 28 March 2023. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Malaysian dividend payers (5.2%). Lower than average of industry peers (4.9%). Reported Earnings • Mar 01
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: RM0.51 (up from RM0.36 in 2Q 2022). Revenue: RM1.46b (up 9.1% from 2Q 2022). Net income: RM1.04b (up 41% from 2Q 2022). Profit margin: 71% (up from 55% in 2Q 2022). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 5.7%. Earnings per share (EPS) exceeded analyst estimates by 4.1%. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 9% per year. Reported Earnings • Dec 01
First quarter 2023 earnings: EPS exceeds analyst expectations First quarter 2023 results: EPS: RM0.48 (up from RM0.42 in 1Q 2022). Revenue: RM1.46b (up 9.9% from 1Q 2022). Net income: RM981.4m (up 14% from 1Q 2022). Profit margin: 67% (up from 65% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.2%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 7% per year. Upcoming Dividend • Oct 25
Upcoming dividend of RM0.37 per share Eligible shareholders must have bought the stock before 01 November 2022. Payment date: 17 November 2022. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Malaysian dividend payers (5.3%). Lower than average of industry peers (4.7%). Announcement • Sep 03
Hong Leong Bank Berhad Appoints Puan Fa'izah Binti Mohamed Amin as Independent and Non Executive Director Hong Leong Bank Berhad announced appointment of Puan Fa'izah Binti Mohamed Amin, Age 54 as Independent and Non Executive Director, Date of change September 01, 2022. Nationality is Malaysia. Puan Fa'izah is a seasoned technocrat with more than 20 years of cross-industry credentials in local conglomerates and multinational corporations. She started her career as a foreign correspondent before moving on to become an information specialist and subsequently joined Time Broadcast Group as Head of News & Information Division in 1995. She then joined TM Berhad as Manager of New Media Strategy in 1997 and promoted to Head of Technology Planning & Innovation in 2000, Assistant General Manager of Business Strategy in 2004, General Manager of Middle East & Africa Business in 2007, and General Manager of Technology Planning/ICT Business in 2010. In 2014, Puan Fa'izah joined UMW Technology Sdn Bhd as President and Chief Digital, and moved on to HP Inc. as Managing Director in 2018 before resigning in 2020. She was a Governor and Director of American Chambers of Commerce from 2019 to 2020 where she provided governance and strategic guidance to promote trade and investment between Malaysia and United States of America. She is also an Independent Director of Cradle Fund Sdn Bhd since 2019. Qualification is Bachelor of Arts (Honours, 2nd Upper) - Political Science from Brock University, Canada. Reported Earnings • Aug 31
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: RM1.61 (up from RM1.40 in FY 2021). Revenue: RM5.42b (up 13% from FY 2021). Net income: RM3.29b (up 15% from FY 2021). Profit margin: 61% (up from 60% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 5.5%. Over the next year, revenue is forecast to grow 12%, compared to a 21% growth forecast for the Banks industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 8% per year and the company’s share price has also increased by 8% per year. Announcement • Aug 30
Hong Leong Bank Berhad Declares Final Single Tier Dividend or the Financial Year Ended 30 June 2022 The Board of Directors of Hong Leong Bank Berhad declared a final single tier dividend of 37 sen per share for the financial year ended 30 June 2022. Reported Earnings • May 31
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: RM0.38 (up from RM0.38 in 3Q 2021). Revenue: RM1.30b (up 2.0% from 3Q 2021). Net income: RM784.8m (up 1.7% from 3Q 2021). Profit margin: 61% (in line with 3Q 2021). Revenue missed analyst estimates by 9.0%. Earnings per share (EPS) also missed analyst estimates by 14%. Over the next year, revenue is forecast to grow 16%, compared to a 18% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 4% per year. Announcement • May 19
Hong Leong Bank Berhad Appoints Miss Cheong Soo Ching as Independent and Non Executive Director Hong Leong Bank Berhad announced the appointment of Miss Cheong Soo Ching as Independent and Non Executive Director, effective from May 18, 2022. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent Non Executive Director Souk Lau was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 07
Upcoming dividend of RM0.18 per share Eligible shareholders must have bought the stock before 14 March 2022. Payment date: 25 March 2022. Payout ratio is a comfortable 36% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Malaysian dividend payers (4.7%). Lower than average of industry peers (4.7%). Announcement • Mar 01
Hong Leong Bank Berhad Declares Interim Single Tier Dividend for Financial Year Ending 30 June, 2022, Payable on March 25, 2022 The Board of Directors of Hong Leong Bank Berhad declared an interim single tier dividend of 18.00 sen per share for the financial year ending 30 June 2022. Payment Date is 25 March 2022. Entitlement date is 15 March 2022. Ex-Date is 14 March 2022. Reported Earnings • Mar 01
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: RM0.36 (up from RM0.33 in 2Q 2021). Revenue: RM1.34b (up 15% from 2Q 2021). Net income: RM738.6m (up 10% from 2Q 2021). Profit margin: 55% (down from 58% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) also missed analyst estimates by 3.0%. Over the next year, revenue is forecast to grow 15%, compared to a 18% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has fallen by 1% per year. Board Change • Feb 25
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent Non Executive Director Souk Lau was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Feb 22
Hong Leong Bank Berhad Announces Retirement of Madam Chong Chye Neo as Independent and Non Executive Director Hong Leong Bank Berhad announced Retirement of Madam Chong Chye Neo as Independent and Non Executive Director. Date of change is February 21, 2022. Reported Earnings • Nov 30
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: RM0.42 (up from RM0.36 in 1Q 2021). Revenue: RM1.33b (up 7.0% from 1Q 2021). Net income: RM857.9m (up 18% from 1Q 2021). Profit margin: 65% (up from 59% in 1Q 2021). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 8.0%. Earnings per share (EPS) surpassed analyst estimates by 8.0%. Over the next year, revenue is forecast to grow 17%, compared to a 21% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Oct 25
Upcoming dividend of RM0.35 per share Eligible shareholders must have bought the stock before 01 November 2021. Payment date: 18 November 2021. Trailing yield: 2.7%. Lower than top quartile of Malaysian dividend payers (4.2%). Lower than average of industry peers (4.5%). Reported Earnings • Sep 30
Full year 2021 earnings released: EPS RM1.40 (vs RM1.22 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: RM4.80b (up 9.2% from FY 2020). Net income: RM2.86b (up 15% from FY 2020). Profit margin: 60% (up from 57% in FY 2020). The increase in margin was driven by higher revenue. Net interest margin (NIM): 2.14% (up from 1.88% in FY 2020). Cost-to-income ratio: 38.0% (down from 44.0% in FY 2020). Non-performing loans: 0.46% (down from 0.61% in FY 2020). Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 3% per year. Reported Earnings • Sep 01
Full year 2021 earnings released: EPS RM1.40 (vs RM1.22 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: RM4.80b (up 7.9% from FY 2020). Net income: RM2.86b (up 15% from FY 2020). Profit margin: 60% (up from 56% in FY 2020). Net interest margin (NIM): 2.14% (up from 1.88% in FY 2020). Cost-to-income ratio: 38.0% (down from 44.0% in FY 2020). Non-performing loans: 0.46% (down from 0.61% in FY 2020). Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 3% per year. Reported Earnings • May 28
Third quarter 2021 earnings released: EPS RM0.38 (vs RM0.26 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: RM1.27b (up 27% from 3Q 2020). Net income: RM771.5m (up 44% from 3Q 2020). Profit margin: 61% (up from 53% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year and the company’s share price has also fallen by 1% per year. Is New 90 Day High Low • Mar 09
New 90-day high: RM19.10 The company is up 1.0% from its price of RM18.88 on 09 December 2020. The Malaysian market is down 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Banks industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is RM10.69 per share. Reported Earnings • Feb 27
Second quarter 2021 earnings released: EPS RM0.33 (vs RM0.34 in 2Q 2020) The company reported a poor second quarter result with weaker earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: RM1.16b (down 4.7% from 2Q 2020). Net income: RM670.8m (down 4.4% from 2Q 2020). Profit margin: 58% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 3% per year. Is New 90 Day High Low • Dec 09
New 90-day high: RM18.88 The company is up 28% from its price of RM14.80 on 10 September 2020. The Malaysian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is RM13.84 per share. Price Target Changed • Nov 30
Price target raised to RM18.72 Up from RM16.84, the current price target is an average from 16 analysts. The new target price is 9.0% above the current share price of RM17.18. As of last close, the stock is up 1.4% over the past year. Reported Earnings • Nov 28
First quarter 2021 earnings released: EPS RM0.36 The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: RM1.24b (up 1.7% from 1Q 2020). Net income: RM728.9m (up 5.9% from 1Q 2020). Profit margin: 59% (up from 56% in 1Q 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 4% per year. Analyst Estimate Surprise Post Earnings • Nov 28
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.3%. Earnings per share (EPS) also surpassed analyst estimates by 18%. Over the next year, revenue is forecast to grow 19%, compared to a 13% growth forecast for the Banks industry in Malaysia. Valuation Update With 7 Day Price Move • Nov 16
Market bids up stock over the past week After last week's 16% share price gain to RM17.06, the stock is trading at a trailing P/E ratio of 14x, up from the previous P/E ratio of 12.1x. This compares to an average P/E of 9x in the Banks industry in Malaysia. Total returns to shareholders over the past three years are 17%. 