HSB

Basic Bank Information

Hang Seng Bank Limited (Hang Seng Bank Limited) is a leading commercial bank in Hong Kong, known for its excellent customer service and solid financial performance. It is not a state-owned or joint venture bank, but a commercial bank controlled by HSBC Group (HSBC Holdings plc) and is privately owned. Hang Seng Bank was established on 3 May 1933 and is headquartered at the Hang Seng Bank Head Office Building, 83 Des Voeux Road Central, Central, Hong Kong. As a listed company on the Hong Kong Stock Exchange (stock code: 0011), its market capitalisation as of May 2025 is approximately HK$145 billion (approximately US$18.6 billion), with HSBC Group holding approximately 62% of the shares, with the remainder held by public and institutional investors. Hang Seng Bank, which means "Hang Seng" and means "sustainable growth", has grown into one of the pillars of Hong Kong's financial industry by virtue of its local roots in Hong Kong and HSBC's global network

Hang Seng Bank's services cover Hong Kong, Mainland China and parts of the Asia-Pacific region, demonstrating the flexibility and international vision of a regional bank. In Hong Kong, Hang Seng Bank operates about 270 service outlets, including branches, automated banking centres and convenient outlets located inside MTR stations, making it the only local bank in Hong Kong to offer extensive branch services at MTR stations, making it a great convenience for commuters and retail customers. There are about 1,000 ATMs in various districts of Hong Kong, sharing the ATM network with HSBC to further enhance customer convenience. The Mainland business is carried out through its wholly-owned subsidiary, Hang Seng Bank (China) Co., Ltd. (established on 28 May 2007), with 46 outlets, including 12 branches and 34 sub-branches, covering nearly 20 major cities including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou and Nanjing. In addition, Hang Seng Bank has branches in Macau, Singapore, and a representative office in Taipei, focusing on foreign exchange wholesale and corporate financial services. Although its global business is not as large as HSBC, in the Asia-Pacific region, Hang Seng Bank effectively serves cross-border customers

through precise positioning and digital channels

Hang Seng Bank is regulated by the Hong Kong Monetary Authority (HKMA) and is subject to the Hong Kong Banking Ordinance and the international Basel III framework. Its mainland subsidiaries are regulated by the China Banking and Insurance Regulatory Commission (CBIRC) and the People's Bank of China (PBOC). The bank participates in the Hong Kong Deposit Protection Scheme (DPS) to protect the security of deposits of up to HK$500,000 (approximately US$64,000) per depositor, enhancing customer confidence. In terms of compliance records, Hang Seng Bank has performed well overall, but in 2024, the Hong Kong Securities and Futures Commission (SFC) and HKMA pointed out that there were transparency issues in the sale of wealth management products, involving about HK$22.4 million in additional fees and benefits, and the bank has taken corrective measures to strengthen internal audit and staff training. There have been no major anti-money laundering (AML) or data security breaches in recent years, showing its robustness in compliance and risk managementFinancial

healthKey

indicators of 2023 annual financial report:

• Capital adequacy ratio: 18.7% (Hong Kong banking industry average is 16.2%)

• Non-performing loan ratio: 0.8% (better than the industry average of 1.3%)

• Liquidity coverage ratio: 145%Net

• profit for the year: HK$24.26 billion

for deposit and loan products

Hang Seng Bank's strong financial position demonstrates its competitive advantage in Hong Kong's banking industry. As of 2024, its total assets will reach HK$1.7 trillion and its total loans will be approximately HK$832 billion. The Capital Adequacy Ratio (CAR) is approximately 15.5%, well above the HKMA requirement of 8%, indicating that its capital buffer is sufficient to withstand market volatility. The non-performing loan ratio (NPL) rose to 6.12% at the end of 2024, an increase of 80 basis points from the first half of the year, mainly due to cash flow pressure from commercial real estate (CRE) customers in Hong Kong, which was higher than the industry average, but banks remained confident in the collateral-to-loan-to-value (LTV) ratio of CRE loans, with an expected credit loss (ECL) coverage ratio of about 8.4%. The liquidity coverage ratio (LCR) is around 140%, exceeding the 100% required by Basel III, indicating that it has ample short-term liquidity. The net profit in 2022 is approximately HK$10 billion, and the dividend yield in 2023 is approximately 6%, reflecting the stability of its profitability and shareholder returns. Despite the rise in NPL, Hang Seng Bank's financial indicators are generally healthy and suitable for customers looking for stable

bankingDeposit products:

• Preferred Savings Account: 0.5% interest rate for the first HK$500,000 on demand

• deposits"HKD time deposits: 3.8% interest rate for 12 months (April 2024 Offer)

• Currency Linked Deposit: USD 3-month tenor up to 4.2%

Loan product:

"

• Mortgage Insurance Plan": Up to 90% mortgage for first-time home buyers, interest rate H+1.3%

• "Tax Season Loan": Preferential interest rate of 2.88% p.a. with a maximum repayment period of 60 months

• "SME Financing Guarantee Scheme": Government guarantee of up to 80%, interest rate of P-2%

Common Fees and Expenses

• Integrated Account: HK$120 per month (waived for maintaining a balance of HK$10,000)

• Local transfers: Free (HK$10 per transaction for instant transfers)

• Cross-border remittances: HK$80 for telegraphic

• transfers Credit Card Overdraft: 35.49% p.a. (minimum HK$50)

digital service experience

Hang Seng Bank's mobile app (Hang Seng Personal Banking) and online banking platform are known for their convenience and feature-richness, with a rating of around 4.0 out of 5 stars on the App Store and Google Play, with users reporting a user-friendly interface but frequent updates (it takes about a few minutes to update almost every time you log in). Core features include facial recognition and biometric login, real-time transfers (with FPS instant payment), bill management, investment tools (stocks, funds, bonds, foreign exchange trading), and e-check deposits. Features include eTicketing (online branch booking service) and cardless ATM withdrawals. In terms of technological innovation, Hang Seng Bank has launched an AI virtual assistant HARO to handle common problems such as account inquiries and loan applications, which is highly efficient but requires manual intervention for complex problems. Banks support open banking APIs and integrate with on-premise payment platforms (such as PayMe) and fintech companies to provide a seamless payment experience. Robo-advisor provides low-cost portfolio management to mid-to-high-end clients through Hang Seng Investment Services, and was awarded the "Best Digital Wealth Management Platform" in 2023. Overall, Hang Seng's digital services are among the best in Hong Kong's banking industry, but the app update experience needs to be optimized.

The

Hang Seng Mobile App has a score of 4.6 on the App Store (2024), with features including:

• "voiceprint authentication": 3-second quick login to the system

• "Smart Financial Assistant": 92% accuracy rate of expenditure classification

• Cross-boundary WMC Service: API Open Platform, an exclusive investment channel for GBA residents

• , has been connected to more than 150 business partners

< customer

service quality

>

ul style="list-style-type: disc" type="disc". Telephone customer service: average waiting time 2 minutes and 15 seconds (2023 internal data)

Branch services: Equipped with "Priority Banking" dedicated counterComplaint

handling: 87% of cases resolved within 5 working daysLanguage

support: Cantonese, Mandarin, English service

security measures are available

Hang Seng Bank's fund security is backed by the Hong Kong Deposit Protection Scheme (DPS), which covers up to HK$500,000 per depositor. Anti-fraud technologies include real-time transaction monitoring, SMS OTP verification, biometric authentication, and Mobile Security Key to reduce the risk of phishing and fraud. Recently, banks have warned customers to be wary of employee impersonation scams and to report suspicious activity through official channels such as [email protected]. In terms of data security, Hang Seng Bank has passed ISO 27001 certification, and its information security management system has met the standards, and there have been no major data breaches in recent years. The bank conducts regular customer education to raise awareness of fraud and protects digital channels with two-factor authentication and encryption. Overall security is a leading position in Hong Kong's banking industry and is suitable for clients who are concerned about the security of their funds and privacy.

real-time transaction monitoring system

• with FIDO2 standard biometric authentication

• technology, processing 3,500+ transactions per second and

• analyzing them, has been ISO/IEC 27001 certified for five consecutive years

• In 2023, cybersecurity investment will increase by 25% year-on-year,

with special services and differentiation

Hang Seng Bank has launched a wide range of products for market segments, demonstrating its deep understanding of customer needs. The Green Banking Account is suitable for young people aged 18-25 with no monthly fee, 1% savings interest rate and low credit card. Seniors can enjoy Prestige Banking with deposit rates of up to 2%, free wealth management advice and health insurance benefits. In terms of green finance, Hang Seng Bank launched ESG investment funds, green bonds and green mortgage/car loans (preferential interest rate of 0.2%) to support Hong Kong's carbon neutrality goal, and its green loan portfolio will grow by 30% in 2023. High-net-worth services are offered under the "Prestige Banking" and "Private Banking" brands, with thresholds of HK$1 million and HK$10 million respectively, covering customised portfolios, global asset allocation and family trusts. Hang Seng Bank's API solution that provides real-time mortgage collection services to property developers to shorten the collection cycle to minutes won the "Best Global Bank" award 2022. These features set Hang Seng Bank apart in the retail, wealth management and sustainable finance sectors.

• "enJoy Card": exclusive to young customers, 6% rebate on food and beverage consumption

• "Smart Wealth Management": Exclusive services for the elderly, including medical appointment assistance

• "Private Banking": Threshold of HK$8 million, providing family trust services

• "Green Deposits": Funds are earmarked for renewable energy projects

'

market position and honor

Hang Seng Bank is the fourth largest bank in Hong Kong, with HK$1.7 trillion in assets and a deposit market share of about 7%, behind HSBC (33%), Bank of China (Hong Kong) (16%) and Standard Chartered Bank (12%). It is ranked in the top 100 of global banks and second among local banks in Hong Kong, behind HSBC. Hang Seng Bank is known for its low-cost-to-return ratio (around 30%) and historically high rate of return (average ROE of 26% from 2004 to 2013), demonstrating the advantages of efficient operations and HSBC resource sharing. Recent awards include "Best Bank in Hong Kong" (Global Finance, for many years), "Best Digital Bank" (Asian Banking & Finance, 2023), "Best Wealth Management Bank" (Euromoney, 2022) and "Best ESG Bank" (Hong Kong Business Awards, 2023). Its subsidiary, Hang Seng Investment (HSVM), won the "Best Performer Award" (Hong Kong Equity & Commodities category) at the 2023 Bloomberg Businessweek Top Fund Awards. The Hang Seng Index (1969), created by Hang Seng Bank, is a "barometer" of the Hong Kong stock market, further cementing its market influence. These accolades and statuses highlight Hang Seng Bank's leadership and innovation in Hong Kong's financial industry.

• the second largest locally incorporated bank in Hong Kong by asset size,

and has been named

• "Best Local Bank in Hong Kong" by The Asset magazine in the 2023 Asian Banker Awards

• One of the major constituents of the Hang Seng Index