In The Name of Allaah, The Most Merciful, The Bestower of Mercy.
Sahl Bin Sa’d [radiyallaahu-anhu] said that Allaah’s Messenger [sallal laahu alayhi wasallam] said, “Indeed, Allaah [The Mighty and Majestic] is The Most Generous and He loves generosity and high moral character, and He hates lowly [evil character]”.
Al-kareem – The Most Generous – is a name of Allaah [The Blessed and Exalted]. Allaah is Magnanimous, the Most Generous, and He loves that His slaves are generous – generous in their statements, actions and in their dealings with the people. Indeed, generosity is one of the Mighty Attributes of Allaah by way of which He raises the status of a generous person, because it is the opposite of miserliness as well as the opposite of evil speech and conduct. As for the generous person, you always see him having good dealings with the people in speech and action. You see him being generous through spending wealth in its rightful place and he is not miserly. He gives based on what Allaah has obligated on him to give from his wealth.
And when it is the case that Allaah loves generosity because He is The Most Generous and He loves that His slaves are generous, therefore He hates its opposite. He hates lowly [behaviour, conduct, dealing etc] and evil manners which emanates from the vile people – those [whose behaviour] is contrary to that of the generous people.
The intent [behind this hadeeth] is that indeed Allaah loves every good speech and every righteous deed, and every conduct that will [attribute] a person to the people who possess great and lofty characteristics that is beloved to Allaah and the righteous ones amongst Allaah’s servants; and Allaah hates its opposite just as it has been conveyed in this hadeeth.
[An Excerpt from ‘At-taleeqaat Al-Maleehah Alaa Silsilah Al-Ahaadeeth As-Saheehah. page 93. slightly paraphrased]