27/05/2026

BIZ & FINANCE WEDNESDAY | MAY 27, 2026

15 HLB delivers resilient 9M performance

cautiously optimistic that the Malaysian economy will be able to navigate through this challenging time, coming from a position of strength, and expand at a pace of 4-5% this year, as of the time of this writing.” He added their aspiration to become the Best Run Bank in Malaysia remains the steady anchor of their 3-5 Year Transformative Plan. “Through internal campaign, we continue to empower our HLB bankers to truly embody our core values and bring our ‘Built Around You’ promise to their everyday engagements with customers. We are focused on enhancing customer experience by providing innovative banking and lending solutions to meet our customers’ financial needs.” He added, “As we navigate the dynamic macroeconomic landscape, the bank’s priority remains strengthening our core operations through the transformation of our branch network, deepening strategic alliances and stepping up AI and digital capabilities. We remain committed to embedding ESG principles across our business to create lasting value for communities and stakeholders.”

The bank continued to maintained operational efficiency with positive JAWS, as operating expenses declined 1.1% YoY against the rise in total income, delivering a lean cost to-income ratio (CIR) of 37.2% for 9M’26. Lam said, “The Malaysian economy is expected to stay resilient despite prevailing uncertainties and increasingly volatile situation from geopolitical conflicts in the Middle East. In our base case scenario that the Iran War will not be prolonged into the later parts of this year, and Malaysia’s position as a net exporter of energy, the Malaysian economy should remain resilient, upheld by domestic consumption through proactive government programmes, continuous rollout of investment initiatives under various masterplans such as the 13th Malaysia Plan, artificial intelligence and demand for electrical and electronics products, continuous investments into data centres as well as favourable commodity prices. All these are expected to cushion the blow from external challenges and potentially a more inflationary environment. Taking a cue from such sound fundamentals, we remain

resilient amidst the ongoing geopolitical uncertainties. We remain agile and adaptive in this challenging business backdrop which allowed us to deliver a higher profit after tax of RM3.289 billion, on the back of top-line growth, strategic cost management and healthy asset quality. Gross loans/financing sustained its growth momentum, with 8.4% YoY expansion driven by growth across key segments including mortgage, auto loans, SME and commercial banking, as well as key overseas markets. We continue to be proactive in providing steadfast support to our customers, ensuring those facing disruption see this challenging phase through, while delivering a healthy asset quality with an overall GIL ratio of 0.6%.” Total income for 9M’26 was 3.2% YoY higher at RM4.932 billion, attributable to loans/financing portfolio expansion and prudent funding cost management, which saw net interest margin (NIM) stable at 1.83%. Non-interest income grew 2.2% YoY, buoyed by an increase in wealth management activities and global markets franchise sales.

o Growth in mortgages, auto loans, SME and commercial banking lift financing to RM218b

KUALA LUMPUR: Hong Leong Bank Bhd (HLB) announcing its nine months ended March 31, 2026 (9M’26) said gross loans/financing grew 8.4% year-on-year (YoY) to RM218.2 billion, as they continued to support customers with their financing needs. It added asset quality maintained at healthy levels with gross impaired loan (GIL) ratio of 0.6% and strong CASA expansion of 14.1% YoY to RM77.9 billion, bringing CASA ratio to 32% besides profit after tax for 9M’26 reporting a 3.3% YoY growth to RM3.289 billion. HLB group managing director and CEO Kevin Lam said “Our performance for the first nine months of the financial year remained

Kinergy reports improved profitability amid energy expansion KUALA LUMPUR: Kinergy Advancement Bhd, an energy firm, posted a 48.8% year-on-year (YoY) revenue increase to RM102 million in the first quarter ended March 31, 2026 (Q1’26), anchored by its Sustainable Energy Solutions (SES) segment, which accounted for 75% of total first quarter revenue and continued to execute with consistency. continued orderbook conversion into earnings, further reaffirming a sustained execution cadence built over prior periods. Anchored by a combined RM3.8 billion pipeline comprising a RM1 billion order book and RM2.8 billion active tender book, the group continues to convert opportunities into execution, delivery and earnings realisation. Tiong Nam posts record RM965m revenue in FY26 driven by robust logistics demand Profitability improved in line with stronger operational execution, with profit before tax (PBT) rising 22% YoY to RM8.6 million and profit after tax (PAT) up 20.4% to RM7.4 million. Operating profit also grew 27.2% during the quarter, standing at RM11.97 million. The quarter’s financial profile reflects At the segment level, SES delivered a 123% YoY revenue increase to RM76.3 million, with segment profit growing 31.2% YoY to RM11.1 million. Progressive billings from key Petronas linked projects in Sabah and Labuan underpin near-term revenue visibility and support the group’s H2 earnings outlook. As Kinergy builds towards a dual-engine model: a project-execution engine through its established EPCC capabilities, and a recurring income engine anchored by concession assets and long-term energy contracts. This structural balance is intended to temper the cyclicality inherent in project-driven revenue, improve earnings resilience over the medium term, and enhance cash flow visibility. This, in turn, strengthens the foundation for scalable growth, while providing greater downside protection and supporting long-term value accretion across the energy value chain. Executive deputy chairman cum group managing director Datuk Lai Keng Onn said the group continues to demonstrate financial prudence alongside growth execution, maintaining a disciplined approach to capital management and funding its expansion initiatives. This, he added, is reflected in a current debt to-equity ratio of 0.8x as at Q1’26, which remains well within its internal policy ceiling of 2.5x. Kinergy expects to enter H2’26 with a stronger momentum outlook, supported by disciplined EPCC selectivity amid shifting sector dynamics and an ongoing transition towards a more balanced portfolio mix.

JOHOR BHARU: Tiong Nam Logistics Holdings Bhd achieved record revenue of RM965 million in the financial year ended March 31, 2026 (FY26), growing 12.6% from RM856.8 million in the previous year, underpinned by robust logistics demand. In tandem, group profit before tax (PBT) rose 54.3% to RM54.3 million from RM35.2 million previously. The record performance was led by the

Managing director Ong Yoong Nyock said:“As global companies move their supply chains into Asean, the demand for reliable logistics infrastructure is rising. Tiong Nam’s extensive nationwide network effectively bridges Malaysian businesses with expanding cross border trade, while our Iskandar Malaysia hub serves as an important gateway to the upcoming Johor-Singapore Special Economic Zone.”

constituting 54% of segment revenue. To capture the robust demand and support future volume, Tiong Nam said it continues to undertake a strategic expansion of its integrated logistics network. The group is adding 1.9 million sq ft of new capacity over the financial years ending March 31, 2027 to March 31, 2029 (FY27-29) to reach a total warehousing footprint of 12.4 million sq ft by FY29.

Logistics and Warehousing Services segment, which reported a 13.2% revenue increase to RM935.5 million. Correspondingly, the segment saw its PBT surge 36.7% to RM65.6 million from RM48.1 million in FY25, supported by operational efficiencies, optimised capacity utilisation, and economies of scale. The group leveraged its capability to deliver reliable logistics solutions to support a growing client base, with multinational corporations now