Hong Leong Bank

Hong Leong Bank Berhad (Hong Leong Bank) is a pioneer in Malaysia's financial market, with an innovation-driven, customer-first approach in retail banking, SME finance, wealth management and digital finance. Founded in Kuching, Sarawak in 1905 by Chinese entrepreneurs Lim Zi Showu and Lim Songqi, it was originally known as Kwong Lee Mortgage and Remittance Company, renamed Kwong Lee Bank Limited in 1934, acquired by Hong Leong Group in 1982, renamed Malayan United Bank Berhad in 1983, and renamed MUI Bank in 1989. In 1994, it was acquired by Hong Leong Group Malaysia and officially changed its name to Hong Leong Bank Berhad. Headquartered in Kuala Lumpur, Malaysia (Level 19, Menara Hong Leong, No. 6, Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur), Hong Leong Bank serves more than 1 million customers and is the fifth largest bank in Malaysia due to its solid financial performance and innovative capabilities.

Bank Basic Information

Hong Leong Bank is a commercial bank, privately owned, established in 1905 and headquartered in Kuala Lumpur, Malaysia. The bank is controlled by Hong Leong Group, one of the largest private conglomerates in Malaysia founded by renowned Malaysian entrepreneur Quek Leng Chan. Hong Leong Bank is listed on Bursa Malaysia (stock code: 5819) with the Koo family, institutional investors and public shareholders as its major shareholders, with Hong Leong Financial Holdings Berhad at its core. Banks are strictly regulated by Bank Negara Malaysia and are required to comply with the Financial Services Act and international financial standards to ensure operational transparency and the safety of customer funds. Its deposits are protected by the Perbadanan Insurans Deposit Malaysia (PIDM) with a maximum coverage of RM250,000 (RM) per depositor. The bank's SWIFT code is HLBBMYKL and the Legal Entity Identifier (LEI) is 5493003NOCSC6LUWUF03. With 125 branches and more than 1,000 ATMs in Malaysia, as well as branches in Singapore, Hong Kong, Vietnam, Cambodia and China, Hong Leong Bank has a total of about 8,000 employees in 2024.

Deposit & Loan Products

Deposits

Leong Bank offers a wide range of deposit products to meet the savings needs of individual and corporate customers:

Demand Deposits: including checking accounts and savings accounts, such as "Basic Savings Account", with a minimum opening amount of 100RM and a base annualized rate of return (APY) of about 0.05%-0.3%, the latest interest rate (deposit rate) needs to be confirmed through branch or online banking. The account supports flexible deposits and withdrawals, which is suitable for daily money management.

• Fixed Deposit: Support multiple currencies such as Malaysian ringgit, US dollar, Chinese yuan, etc., with deposit tenors ranging from 1 month to 5 years, and the minimum deposit amount is 5000RM. In 2025, the fixed deposit rate varies according to the term, such as 2.15% for 1 month, 2.25% for 2-3 months, 2.30% for 4-5 months, 2.35% for 6-11 months, and 2.35% for 12-60 months (fixed deposit rate).

• Featured Products:

  • High Yield Savings Account: e.g. "Pay&Save Account", which offers up to 4.15% p.a. interest rate, with a minimum monthly deposit of 2000RM, a debit card spending of at least 500RM, and a bill payment of at least 500RM via online banking. No monthly fees (Pay &Save account).

  • Large Certificates of Deposit (CD): Support flexible tenors, suitable for large amount of money customers, the interest rate needs to be queried through the branch or app, and the early withdrawal penalty is 90 to 180 days of interest.
    Customers can check the "Cloud Interest Rate" offer through the "HLB Connect" app or online banking, and the deposit products can be opened and calculated instantly, and some accounts can be offered free transaction fees.

Loans

Hong Leong Bank offers a comprehensive range of loan products to meet diverse financing needs:

• Mortgages: Fixed- and variable-rate mortgages with up to 90% of the value of the property and up to 35 years of repayment. In 2025, the variable interest rate will be as low as 2.63% (Flexi Mortgage, based on the standardised benchmark rate SBR 3.0%), with cash rebates and green mortgage discounts, and applications require a credit score of 700 or above and an annual income of 30,000 or more (mortgage services).

• Car loan: support new and used car financing, the loan amount is up to 500,000 RM, the term is up to 9 years, the annualized interest rate (APR) is 2.8%-3.24% for new cars, 3.78% for old cars, and a credit score of 660 or above is required (car loan service).

• Personal Line of Credit: Loan amount from 5,000 RM to 250,000 RM, tenor of 2 to 5 years, annualized interest rate (APR) of about 5.99%, application threshold is an annual income of 24,000 RM or more and good credit history (personal loan).

• Flexible repayment options: Mortgages and personal loans offer no penalty for prepayment, monthly or bi-weekly payment plans, and a revolving line of credit for flexible debt management.
  All loans are subject to bank approval, and customers are required to provide credit history, proof of income and asset information, subject to the terms of the loan agreement. The bank's corporate financial services, such as letters of credit, bill discounting and trade loans, provide additional support to SMEs and large enterprises.

Digital Service Experience

Hong Leong Bank's mobile banking app 'HLB Connect' is the core of its digital services, which is available for download on iOS 14.0 and above and Android 9.0 and above, with an App Store rating of around 4.7 and a Google Play rating of around 4.5, with users praising its quick launch (within 2 seconds), intuitive interface, and multi-language support (English, Malay, Chinese Simplified) (HLB Connect). Core features include:

• Face recognition: Supports biometric authentication (such as Face ID and Touch ID), combined with strong encryption technology to ensure transaction security.

• Real-time transfers: Support real-time transfers in Malaysian ringgit through DuitNow and SWIFT, with a daily limit of up to 1 million RM, international remittances covering more than 100 countries, and cooperate with Western Union to provide low-rate transfers.

• Bill management: Support online bill payment, automatic debit, and e-statement, allow up to five bills to be paid at a time, and sort transactions in real time.

• Investment Tool Integration: Support stocks, funds, bonds, and ETFs through the Manulife investment platform, providing real-time market data and investment advisory services.
  The online banking platform "HLB Connect Online" supports multiple browsers and provides similar functions, allowing customers to open an account in 5 minutes through the app or official website (HLB Connect Online). The app supports accessibility features such as dynamic font adjustment and VoiceOver compatibility for visually impaired and hearing-impaired customers. In 2023, about 60% of customers completed transactions through digital platforms, significantly improving the user experience. In addition, the "HLB ConnectFirst" app is designed for corporate customers and supports group account consolidation and mobile approval (HLB ConnectFirst).

Technological innovation

Hong Leong Bank excels in the fintech sector, driving technological advancements through its Digital Innovation Centre:

AI customer service: Introduce an AI-driven customer service system to analyze transaction behavior, detect fraud risks in real time, automate 80% of customer inquiries by 2023, and plan to launch a virtual assistant in 2025 to support 24/7 inquiries and personalized financial advice.

• Robo-advisor: Provide AI-based investment management services through Manulife investment platform, recommend diversified investment portfolios according to customer risk appetite, with a minimum investment of 1000RM and no subscription fees.

• Open Banking API Support: Following Bank Negara Malaysia's Open Banking Framework, it integrates with third-party service providers to provide account management and financial services interoperability, supporting 35 deposit, credit card and loan servicing APIs by 2024.

• Other innovations: support for QR code payments, mobile check deposits, and partnerships with DuitNow, JomPAY and FPX to enhance the payment experience; In 2024, it will cooperate with AWS to optimize the cloud trading system; Launch of a blockchain-based trade finance platform in 2023 to streamline the letter of credit process. In 2024, the bank will invest RM1 billion to upgrade its cloud technology and data analytics platform to improve operational efficiency.

Featured Services & Differentiation

Hong Leong Bank is known for its localised services and digital innovations:

SME support: Customised loans and cash management services through Hong Leong SME Services, participation in Bank Negara Malaysia's SME Financing Guarantee Scheme, loan approval in as fast as 10 seconds and up to RM 3 million, and a 12% increase in SME loan balance in 2023 (SME Services).

• Cross-border finance: With branches in Singapore, Hong Kong, Vietnam, Cambodia and China, it became the first Malaysian bank to invest in China's banking sector (Bank of Chengdu) in 2008 and increased cross-border transaction volume by 15% in 2023.

• Wealth Management: Through Hong Leong Investments, we provide individual pension funds, unit trusts and insurance products, with approximately RM 30 billion in assets under management in 2023 to meet the needs of high- and middle-net-worth clients.

• DAWHO Social Banking: Launched the DAWHO app in 2020, integrating payment, savings and investment functions, targeting young customers and significantly improving customer stickiness, accounting for 30% of new accounts opened in 2023 (DAWHO).

• Islamic Banking: Through Hong Leong Islamic Bank, we provide Shariah-compliant financial services, including personal financing and corporate loans, to meet the diverse needs of our customers.

• Community Contribution: Supporting education and charity projects through the Hong Leong Bank Foundation, donating RM3 million in 2023 for community development and financial literacy talks to enhance the financial literacy skills of young people.

Market Position & Accolades

Hong Leong Bank is the fifth-largest bank in Malaysia, with total assets of approximately RM 250 billion (US$60 billion) in 2024, ranking among the top 38 banks in Malaysia. With 125 branches and more than 1,000 ATMs, the bank serves more than 1 million customers, and has a strong position in retail banking, SME finance and wealth management. In 2023, the bank reported an 8% increase in deposit balances, a 6% increase in loan balances, and a non-performing loan ratio remaining below 0.2%, indicating that it is operating soundly. Manulife's innovations in digital services and green finance have enabled it to remain competitive in the regional market. Its international business accounted for 15% of total revenue, with a particularly strong performance in China and Southeast Asia. Key accolades include:

• "Best SME Financial Services in Malaysia" Awards 2023.

• Malaysia Green Finance Pioneer Award 2022.

• Best Digital Bank in Malaysia 2021.
  Hong Leong Bank's community focus and ability to innovate make it a stalwart of Malaysia's financial markets.

Conclusion

With more than 120 years of history, Hong Leong Bank Berhad has been a pioneer in Malaysia's financial market with its localised services and innovative financial products. It offers a wide range of deposit and loan products to meet customer needs through local branches and digital platforms. The digital service is centered on the "HLB Connect" and "DAWHO" applications, which provide efficient real-time transfer and investment management functions. Technological innovations include AI customer service, robo-advisors, open banking APIs, and blockchain technology, demonstrating its forward-looking digital transformation. With its SME support, cross-border financial services, Islamic banking, DAWHO social banking and a number of industry accolades, Manulife Bank continues to demonstrate strong competitiveness and influence in the Malaysian and regional financial markets.

Note:

• specific interest rates and product details may vary depending on market changes, please check with Hong Leong Bank official website or check with the bank directly for the latest information.