Hong Leong Capital posts RM40.8mil net profit amid market volatility
The net profit for the quarter ended March 31, 2025 declined 33 per cent from RM61.2 million a year ago.
In a filing with Bursa Malaysia, Hong Leong Capital said the investment banking and stockbroking segment recorded lower pre-tax profit of RM12 million, down 11 per cent from RM13.9 million last year.
This is due to lower profit contribution from stockbroking division.
The investment holding and others segment slipped into the red to RM1.96 million from a pre-tax profit of RM11 million, dragged by revaluation loss of financial assets at FVTPL
Conversely, fund management and unit trust management segment posted higher pre-tax profit of RM4.9 million, higher than RM1.98 million last year due to lower overhead expenses.
Hong Leong Capital chairman Tan Kong Khoon said the performance was affected by market volatility stemming from heightened geopolitical tensions and evolving global trade dynamics.
He said the external headwinds had a direct impact on the stock market, as seen in the 5.0 per cent decline of the FBM KLCI since the start of the financial year in July 2024 that adversely affected its equity investment returns.
"Hong Leong Capital will remain focused on executing our strategic priorities and delivering long-term value creation for all our stakeholders.
"A key initiative in this direction will be bolstering the sales outreach of Hong Leong Capital suite of products by leveraging on the integrated distribution network of the financial group.
"This includes the upcoming foreign-denominated funds from our asset management division," he added.
Tan said the company is enhancing the stockbroking application to create a more integrated experience for users to improve customer experience and serve as a key feature in client acquisition.
These initiatives, he said, will continue to be underpinned by strict capital liquidity, and cost discipline.
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