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Hong Leong Bank Bhd (XKLS:5819) ROE % : 12.33% (As of Dec. 2024)


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What is Hong Leong Bank Bhd ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hong Leong Bank Bhd's annualized net income for the quarter that ended in Dec. 2024 was RM4,593 Mil. Hong Leong Bank Bhd's average Total Stockholders Equity over the quarter that ended in Dec. 2024 was RM37,248 Mil. Therefore, Hong Leong Bank Bhd's annualized ROE % for the quarter that ended in Dec. 2024 was 12.33%.

The historical rank and industry rank for Hong Leong Bank Bhd's ROE % or its related term are showing as below:

XKLS:5819' s ROE % Range Over the Past 10 Years
Min: 9.47   Med: 10.84   Max: 14.26
Current: 11.76

During the past 13 years, Hong Leong Bank Bhd's highest ROE % was 14.26%. The lowest was 9.47%. And the median was 10.84%.

XKLS:5819's ROE % is ranked better than
64.24% of 1541 companies
in the Banks industry
Industry Median: 9.52 vs XKLS:5819: 11.76

Hong Leong Bank Bhd ROE % Historical Data

The historical data trend for Hong Leong Bank Bhd's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hong Leong Bank Bhd ROE % Chart

Hong Leong Bank Bhd Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.47 10.09 10.88 11.75 11.77

Hong Leong Bank Bhd Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.48 11.64 11.25 11.83 12.33

Competitive Comparison of Hong Leong Bank Bhd's ROE %

For the Banks - Regional subindustry, Hong Leong Bank Bhd's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hong Leong Bank Bhd's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Hong Leong Bank Bhd's ROE % distribution charts can be found below:

* The bar in red indicates where Hong Leong Bank Bhd's ROE % falls into.


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Hong Leong Bank Bhd ROE % Calculation

Hong Leong Bank Bhd's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=4196.212/( (33986.652+37294.088)/ 2 )
=4196.212/35640.37
=11.77 %

Hong Leong Bank Bhd's annualized ROE % for the quarter that ended in Dec. 2024 is calculated as

ROE %=Net Income (Q: Dec. 2024 )/( (Total Stockholders Equity (Q: Sep. 2024 )+Total Stockholders Equity (Q: Dec. 2024 ))/ count )
=4592.736/( (36441.557+38053.94)/ 2 )
=4592.736/37247.7485
=12.33 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2024) net income data. ROE % is displayed in the 30-year financial page.


Hong Leong Bank Bhd  (XKLS:5819) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=4592.736/37247.7485
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4592.736 / 6398.556)*(6398.556 / 294584.814)*(294584.814 / 37247.7485)
=Net Margin %*Asset Turnover*Equity Multiplier
=71.78 %*0.0217*7.9088
=ROA %*Equity Multiplier
=1.56 %*7.9088
=12.33 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=4592.736/37247.7485
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4592.736 / 5602.44) * (5602.44 / 6398.556) * (6398.556 / 294584.814) * (294584.814 / 37247.7485)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8198 * 87.56 % * 0.0217 * 7.9088
=12.33 %

Note: The net income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (Dec. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Hong Leong Bank Bhd ROE % Related Terms

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Hong Leong Bank Bhd Business Description

Traded in Other Exchanges
N/A
Address
No.6, Jalan Damanlela, Level 30, Menara Hong Leong, Bukit, Damansara, Kuala Lumpur, MYS, 50490
Hong Leong Bank Bhd is a regional financial services company. Its segments include Personal Financial Services, Business & Corporate Banking, Global Markets, Overseas/International Operations, and Other operations. Personal Financial Services segment focuses mainly on servicing individual customers and small businesses. Business & Corporate Banking focuses on corporate and small and medium enterprises. Global Markets refers to its domestic treasury and capital market operations and includes foreign exchange, money market operations as well as capital market securities trading and investments. Overseas/International Operations include the bank's overseas branches, subsidiaries, and associates. Other operations segment includes head office and other business segment.

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