HLB reported a RM3,185m net profit in 9MFY25 net profit (flat yoy), while on a core net profit basis, at RM3,289m (+4% yoy). The quarter was affected by an accounting loss from the dilution in its Bank of Chengdu (BOCD) stake from 19.76% to 17.78% subsequent to the conversion of all the remaining convertible bonds into share at BOCD. In our view, this is not a major issue as HLB has more than recouped its total investment cost in BOCD of RM2.05bn while dividends received from BOCD was RM2.15bn. For 9MFY25, we saw impressive growth coming from NOII (+31.2% yoy) driven by robust treasury products sale at GM Franchise Sales and through wealth/banca (+37.8% yoy). Fund based income grew by 5.8% yoy on the back of loan growth of 7.2% yoy and continued NIM optimization initiatives (managing deposit tenure, growing CASA in community banking and growing fixed-rate loans). 9MFY25 NIM rose 5bps yoy to 1.9%, though we saw marginal erosion in NIM on a sequential basis due to seasonal competition, which is expected to taper down in 4QFY25. BOCD’s underlying profit contribution, however, saw a 7.4% decline yoy due to the impact of a lower shareholding.