SG60 Spotlight: Hong Leong Finance

14 Jul 2025

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 Hong Leong Finance (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 and 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.

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