Hong Leong Finance Limited posted a net profit of S$35.04 million for the six months ended Jun 30, 2026, up 8.8 per cent year-on-year, as tighter funding costs lifted its net-interest margin to 1.4 per cent despite a softer lending environment.

Earnings per share rose to 15.58 Singapore cents from 14.36 cents a year earlier. The board declared an interim cash dividend of 2.85 cents per share, compared with 2.75 cents a year ago, payable on 4 Sep 2026 to shareholders on record as of 20 Aug 2026.

Total operating income (interest income/hiring charges plus non-interest revenue) increased 12.1 per cent to S$104.75 million. Net interest income climbed 8.4 per cent to S$96.75 million as interest expense fell 47.7 per cent to S$82.65 million, offsetting a 27.5 per cent decline in gross interest and hiring-charge income to S$179.40 million. Fee and commission income almost doubled to S$7.92 million on stronger loan-related fees, while other operating income slipped 33.9 per cent to S$72,000. Pre-tax profit advanced 8.8 per cent to S$42.23 million.

Operating expenses inched up 6.7 per cent to S$64.91 million, reflecting higher staff costs (up 5.5 per cent) and increased depreciation and project-related outlays linked to ongoing digital initiatives. Credit costs remained benign; the group booked a net write-back of S$2.39 million versus S$6.22 million a year earlier, keeping the non-performing loan ratio low at 0.5 per cent.

Gross customer loans expanded 3.9 per cent from end-2025 to S$12.57 billion, while customer deposits rose 4.9 per cent to S$12.90 billion, underpinning balance-sheet growth. The capital adequacy ratio stood at 15.7 per cent, comfortably above regulatory minima.

Looking ahead, Hong Leong Finance said it will prioritise protecting margins through disciplined pricing and active asset-liability management as interest-rate trajectories remain uncertain. Management also highlighted continued investment in technology, sustainable-finance offerings and digital platforms to support customer acquisition and operational efficiency amid a competitive domestic market.