Hong Leong Finance reports 40.8% fall in H2 net profit to S$30.5 million
Its board recommends a final tax exempt, one-tier dividend of S$0.0615 a share for the full year ended Dec 31, 2025
[SINGAPORE] Hong Leong Finance on Wednesday (Feb 25) announced a 40.8 per cent fall in net profit from S$51.5 million to S$30.5 million for the six months ended Dec 31, 2025.
Net interest income also declined 29.4 per cent year on year (yoy) to S$79.3 million in for the second half of the 2025 financial year, from S$112.4 million.
A final tax exempt, one-tier dividend of S$0.0615 per share has been recommended by the directors for approval by shareholders for the full-year ended Dec 31, 2025.
The dividend is payable on May 21, subject to shareholders’ approval at the annual general meeting on Apr 23.
Earnings per share stood at S$0.1358 for the period, down from S$0.2296 a year before.
Other operating income declined by 9 per cent yoy in H2 FY2025 to S$61,000, from S$67,000.
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Meanwhile, fee and commission income more than doubled yoy to S$10.6 million, from S$4.1 million, driven by increased property financing activities amid improving market sentiment.
Total operating expenses also fell by 3.2 per cent to S$51.4 million during the period, from S$53 million in H2 FY2024, largely on prudent staff cost containment and management.
For FY2025, Hong Leong Finance’s net profit stood at S$62.7 million, a 39.7 per cent decline from S$104.1 million in the previous financial year.
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Net loan assets totalled S$12.1 billion as at Dec 31, 2025, representing a rise of 3.7 per cent from S$11.7 billion as at Dec 31, 2024.
External developments and heightened geopolitical tensions may continue to weigh on growth in 2026, said the company.
It said in a bourse filing: “Amid a volatile interest rate and uncertain economic environment, we will focus on deepening customer relationships and strengthening support for small and medium-sized enterprise financing to drive scalable and sustainable growth, anchored by prudent compliance, disciplined credit underwriting, and robust risk management frameworks.”
Shares of Hong Leong Finance ended Wednesday 0.7 per cent or S$0.02 lower at S$2.72 prior to the results release.
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