Hong Leong Bank Berhad Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

Hong Leong Bank Berhad (KLSE:HLBANK) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at RM1.5b, statutory earnings missed forecasts by 16%, coming in at just RM0.46 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Hong Leong Bank Berhad's 15 analysts are forecasting 2026 revenues to be RM6.69b, approximately in line with the last 12 months. Statutory earnings per share are predicted to step up 10% to RM2.27. Before this earnings report, the analysts had been forecasting revenues of RM6.73b and earnings per share (EPS) of RM2.32 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for Hong Leong Bank Berhad

The consensus price target held steady at RM24.58, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hong Leong Bank Berhad, with the most bullish analyst valuing it at RM30.70 and the most bearish at RM22.30 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Hong Leong Bank Berhad's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 7.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hong Leong Bank Berhad.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hong Leong Bank Berhad. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hong Leong Bank Berhad's revenue is expected to perform worse than the wider industry. The consensus price target held steady at RM24.58, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Hong Leong Bank Berhad going out to 2027, and you can see them free on our platform here..

Even so, be aware that Hong Leong Bank Berhad is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.