Hong Leong Bank is a financial company with a rich history dating back to 1905. Originally founded in Kuching, Sarawak, it has grown into one of Malaysia’s leading banking groups.
The bank has a strong domestic presence with a comprehensive range of financial services, including personal banking, business banking, and wealth management. It is also expanding its regional footprint with operations in Singapore and other key markets.
Hong Leong Bank is known for its stability, customer-centric approach, and financial solutions. Its current Chief Executive Officer is Kevin Lam, who was appointed as CEO and Group Managing Director on July 1, 2023. Hong Leong Bank’s shares are listed on the Kuala Lumpur Stock Exchange (KLSE).
YOUR CAPITAL IS AT RISK
Hong Leong Bank EPS and Revenue Breakdown 2020-2023
| Source: Finbox | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 1.22 | MYR 4.78 billion |
| 2021 | MYR 1.40 | MYR 5.47 billion |
| 2022 | MYR 1.61 | MYR 5.60 billion |
| 2023 | MYR 1.86 | MYR 5.69 billion |
Industry Comparison
Hong Leong Bank Share Price Forecast
Data compiled by TradingView shows that out of 13 analysts covering Hong Leong shares, 12 have a Buy rating on the stock, and one has a Hold rating on the shares. Given the lack of bearish views, here are what two analysts, currently holding a Buy rating on the stock, have recently said:
Following Hong Leong’s recent earnings release, analysts at TA said the results came within expectations. They noted that net profit accounted for 77% of their FY24 net profit forecast. “Translating to a 7.1% YoY increase, the stronger set of results was underpinned mainly by a net writeback in allowances, along with more robust contributions from associates,” they wrote.
Meanwhile, analysts at RHB-OSK said in their note following Hong Leong’s results that it met expectations, and its “key financial metrics are on track to achieve FY24 targets, suggesting that efforts to rebalance its growth drivers – as per its mid-term strategy plan – are coming along nicely.” The firm still likes the stock for its above-industry loan growth, solid asset quality, and liquid balance sheet.
Average Analyst Consensus 12-Month Price Target: MYR 23.64
Hong Leong Bank Share Price, Chart & Dividend Yield
Shares of Hong Leong Bank have been moving mostly sideways for the past couple of years, although there is a long-term downtrend line that it has been adhering to. Even so, the stock is still significantly higher than its March 2020 lows after a strong rally to 2022.
Dividend Yield: 3.31%
YOUR CAPITAL IS AT RISK
Who Should Buy Hong Leong Bank Shares
Hong Leong Bank can be a compelling investment for various investor profiles, but it’s crucial to align your investment goals with the bank and stock’s characteristics. Here are some investor types who might find Hong Leong Bank shares attractive:
Exposure to Malaysian Economy: Investors seeking exposure to the robust Malaysian economy may find Hong Leong Bank an appealing choice. As a well-established domestic player with a strong track record, the bank can offer stability and growth potential aligned with the country’s economic trajectory.
Dividend-Focused Investors: Income-oriented investors might be drawn to Hong Leong Bank’s dividend history. The bank has a tradition of distributing a portion of its earnings to shareholders, making it a potential candidate for those seeking regular income streams.
Long-Term Investors: Investors with a long-term perspective who believe in the growth of digital banking in Malaysia could find Hong Leong Bank an interesting investment. The bank’s focus on digital innovation and its ability to adapt to changing customer preferences may present opportunities for capital appreciation.
Risk-Averse Investors: Finally, investors who value financial stability and a strong balance sheet might consider Hong Leong Bank. The bank’s conservative approach to risk management and its solid financial performance can be appealing to risk-averse investors.
