HLB Remains Watchful Of US Monetary Policy, Targets 1.85-1.95 Pct NIM Growth In FY2025 

KUALA LUMPUR, Aug 29 (Bernama) — Hong Leong Bank Bhd (HLB) remains watchful of the United States monetary policy stance and targeting between 1.85 per cent and 1.95 per cent net interest margin (NIM) growth in the financial year 2025 (FY2025). 

Group managing director and chief executive officer Kevin Lam said the bank continues to manage its NIM tightly in the new financial year and is committed to continue driving core franchise performance while pacing investments to deliver sustainable returns to shareholders. 

“NIM has achieved a fifth consecutive quarter of improvement to 1.89 per cent in the financial year ended June 30, 2024 with another two basis point improvements compared to 1.87 per cent in the previous quarter,” he said during the media briefing on HLB FY2024 Financial Results today. 

He also said the bank is on track to achieve goals laid out for the three to five year strategic plan, including upholding healthy asset quality and the focus on industry gross impaired loan (GIL) ratio. 

“As far as the management overlays are concerned, we have RM574 million in terms of management overlays provision that remains intact and we would be looking at remodelling into more specific models as we move along this new financial year,” he said. 

Besides that, he said Malaysia’s growth outlook is expected to remain favourable going into the second half of the year, and likely to be in the upper range of the official growth forecast of four to five per cent for 2024. 

“Growth will continue to be underpinned by resilient domestic demand as the labour market continues to improve, while extended recovery in global demand provides an added impetus.

“Upside risks from potential spillover from the global tech upturn and faster project implementation will likely mitigate downside risks from lingering geopolitical uncertainties and slowdown risks in China,“ he pointed out. 

Hence, he said the bank forecast the ringgit to hover around 4.40 against the US dollar by the end of 2024. 

In order to drive the growth of core businesses and build a strong ASEAN franchise in the backdrop of a dynamic business environment, Lam said HLB will focus on the execution of  key strategic priorities to deliver sustainable outcomes. 

“In our journey towards carbon neutrality, the bank remains committed to implement environmental, social and governance strategies and practices while working together with all stakeholders to make a positive impact for our customers and the community,” he said. 

HLB saw its net profit rose to RM4.20 billion for FY2024 compared to RM3.82 billion in FY2023, supported by strong loans/financing growth, improved asset quality metrics and healthy contributions from its associates.

The bank has declared a final dividend of 43 sen per share, bringing the total dividend to 68 sen per share for FY2024, an increase of nine sen compared to the previous year.

-- BERNAMA