Hong Leong Finance FY2025 net profit drops 40% to S$62.7m on margin compression, but loans grow 3.7% and 8.9‑cent total dividend declared
Summary:
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FY2025 profit fell to S$62.7 million from S$104.1 million as net interest income slid 25.1% to S$168.6 million on sharply lower benchmark rates and tighter lending spreads.
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Total interest income and hiring charges declined 25.0% to S$444.7 million, outpaced by a matching 25.0% drop in interest expense to S$276.1 million, while fee and commission income surged 81.3% to S$14.7 million on stronger property financing activity.
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Operating expenses were well contained, rising just 3.1% to S$112.2 million despite higher IT depreciation and transformation spend, and credit costs improved with a S$4.3 million net reversal of allowances versus a small charge in 2024, keeping NPL ratio at 0.4%.
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Loans, advances and hire‑purchase receivables grew 3.7% to S$12.10 billion, deposits were broadly flat at S$12.30 billion, and shareholders’ funds inched up to S$2.12 billion, lifting NAV per share to S$4.71 and maintaining a robust 16.1% capital adequacy ratio.
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The board paid an interim dividend of 2.75 cents and proposes a 6.15‑cent final dividend per share (total 8.90 cents), down from 13.75 cents in 2024, as it balances shareholder returns with capital to support loan growth and ongoing digital investments.