SG60 Spotlight: Hong Leong Finance

From Funding Growth to Growing Wealth: A Quiet Force in Singapore’s Financial Landscape 

As Singapore celebrates 60 years of independence, we turn the spotlight on companies that have quietly powered the nation’s growth — and continue to offer investment potential today. One of those homegrown names is 丰隆金融 (SGX: S41). 

 The Origins: Financing a Nation 

Founded in 1961 — even before Singapore’s independence — Hong Leong Finance began as a small finance company focused on supporting local businesses. At a time when access to credit was limited, it offered personal loans, hire-purchase financing, and business support to everyday Singaporeans and SMEs. 

As Singapore industrialised, so did Hong Leong Finance. The company helped fund the growth of heartland shops, manufacturers, and housing, earning the trust of generations of local businesses. 

📈 From Traditional Lending to Strategic Transformation 

Today, Hong Leong Finance is Singapore’s largest finance company, with over 28 branches islandwide. It remains focused on: 

• SME financing (working capital, trade loans, equipment leasing) 

• Consumer financing (mortgages, fixed deposits) 

• Corporate lending, increasingly aligned with digital transformation and sustainability objectives 

While its business may appear “traditional” on the surface, Hong Leong Finance is in the midst of modernising its infrastructure, expanding green financing offerings, and deepening partnerships with fintech firms. 

 Stock Performance: A Value-Driven Play 

While not as high-profile as the big banks, Hong Leong Finance (SGX: S41) has quietly rewarded long-term shareholders. The stock has: 

• Delivered stable dividends over the past decade 

• Maintained a strong capital position with conservative risk management 

• Traded at attractive price-to-book ratios, appealing to value investors 

• Seen a recent pickup in investor interest as SME lending demand rebounds post-COVID 

In the past 12 months, the stock has remained relatively stable while offering yields north of 4% — attractive in a high interest rate environment. 

Why Investors Are Watching 

In an environment where major banks dominate headlines, companies like Hong Leong Finance offer niche resilience: 

• Benefiting from Singapore’s resilient SME sector 

• Positioned to support regional expansion of SG-based businesses 

• Likely to benefit from rate stability 和 loan growth recovery in 2H 2025 

• A hidden gem for dividend-focused and SG-centric portfolios 

Your Turn: Trade Hong Leong Finance on Phillip Nova 

Hong Leong Finance is more than just a legacy brand — it’s a homegrown company with deep roots in Singapore’s financial system and upside tied to the nation’s real economy. 

Ready to trade this SG60 stock? 
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