The Relationship Between Hong Leong Bank’s Performance with Leverage and Inflation

This paper are for recognize the relationship between risk and performance of Hong Leong Bank. Hong Leong Bank is one of the bank that have a good reputation in banking industry at Malaysia. Thus, it is important to shareholder knows the type of risk that faced by management of bank. The focused risk is leverage and external factor that are inflation by using profitability as the bank’s indicator which is by using ROA and current ratio. Aside that, the external factor such as inflation also give an impact to the performance of bank. The leverage and inflation are significant in business due to the direct and indirect relationship to the profitability. Therefore, this paper further examines if management have taken a serious step in maintaining the risk that will give any reflect to the profitability.