Hong Leong Bank
Subsidiaries |
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Rating | Moody's: A3 Fitch Ratings: BBB+ |
Website | www |
Hong Leong Bank Berhad (Chinese: 豐隆銀行; Jyutping: Fung1 Lung4 Ngan4 Hong4; Pe̍h-ōe-jī: Hong-liông Gûn-hâng; MYX: 5819) is a major public listed banking group in Malaysia.
History
Early beginnings
Hong Leong Bank began its operations in 1905 in
In the initial years, the company went through a difficult period of growth, caught in the middle of a few economic crises. The
Kwong Lee Mortgage and Remittance Company survived all these setbacks because of its strong cash reserves and its conservative operational policy. Immediately after the Depression, on 26 October 1934, the company was converted into a public company under the name Kwong Lee Bank. Shortly after, the third branch of the bank was opened in Sarikei in 1937.
The
In 1973, Kwong Lee Bank opened another branch in Bintangor.
Expansion
In late 1977, Yang Amat Mulia Tunku Osman Ibni Tunku Temenggong Ahmad, a member of the royal family from the State of Johor, came in as a shareholder of the bank and acquired 30% of its share capital from both OCBC Bank and the Lam family. The period subsequent to this saw a change in the direction of Kwong Lee Bank's expansion. From five banking branch offices in Sarawak (Kuching, Sibu, Sarikei, Serian and Bintangor) and one in Singapore, the bank expanded its operations to Peninsular Malaysia when it opened its first branch in Kuala Lumpur in May 1978 and this was followed by another branch in Johor Bahru during the same month. Over the next four years, a total of six branches were opened in Labis, Segamat, Bintulu, Kota Tinggi, Kota Kinabalu and Kluang and on 1 January 1982, the Head Office was relocated from Kuching to Kuala Lumpur.
Acquisitions
In May 1982, Kwong Lee Bank
On 3 January 1994, the
HLBB was listed on the Kuala Lumpur Stock Exchange on 17 October 1994 with its total paid-up capital enlarged to RM 470 million. Since then, the growth of the bank has been remarkable.
The consolidation of the banking institution to meet the requirements of
HLBB is a member of the Hong Leong Group. The group has diversified businesses in financial services, manufacturing, property, and infrastructure development.
Acquisition of EON Bank
On 6 May 2011, Hong Leong Bank announced that it had completed its acquisition on EON Capital Bhd's assets and liabilities, making EON Bank part of Hong Leong Bank Group.
Within close to 8 weeks, the legal vesting was concluded where all assets and liabilities of the former EON Bank was vested into HLB. The merger creates the country's fourth-largest bank with an asset size of more than RM140 billion, with a total of 329 branches.[4]
Corporate affairs
Personal banking
The bank provides banking services and financial products, which include property, auto, personal loans, payment products, share financing, investment, and insurance, as well as deposits and remittance to individuals and small businesses.
Business and corporate banking
Principal business activities include the provision of banking such as deposit and loan services covering business current account, interest-bearing auto-sweep as well as fixed deposit, and financing options ranging from asset acquisition, working capital, and debt capital market structures, for corporate, commercial and SME client base. HLB also specializes in the provision of transaction banking via cash management, trade financing and services.
Portfolio Investment Account
Hong Leong Islamic Bank (HLISB) has launched the first-in-market digital restricted investment account, Portfolio Investment Account (PIA-i). HLISB said it had collaborated with Hong Leong Islamic Asset Management (HLISAM) for the PIA-i to offer its customers the opportunity and accessibility to invest in Shariah-compliant unit trusts funds on a digital platform.[5]
Operations
Principal subsidiaries
These are HLB's subsidiaries in Asia region.[6]
Malaysia
- Hong Leong Bank Berhad[6]
- Hong Leong Islamic Bank Berhad
Singapore
- HL Bank Singapore[7]
Hong Kong
- Hong Leong Bank Berhad, Hong Kong Branch[8]
Vietnam
- Hong Leong Bank Vietnam Limited[6]
Cambodia
- Hong Leong Bank (Cambodia) PLC[6]
China
In March 2010, HLB together with Bank of Chengdu Co., Ltd. (BOCD) formed a joint-venture company named Sichuan Jincheng Consumer Finance Ltd Co (SJCF) to start consumer finance operations in Central and Western China. HLB has a 49% stake in the joint-venture company while BOCD held the rest.[9]
- Bank of Chengdu Co., Ltd - 18% of equity held.[6]
Controversy
In February 2013, the bank had embarked on a rationalization exercise as part of its continuing efforts to review its business and maintain competitiveness.[10]
As part of the exercise involves transfer non-executive staffs from all over the country to three centralized locations, it created dissatisfactions amongst affected employees. A picket was held at Wisma Hong Leong in November 2013.[11] Alleged wrongful dismissal of the 27 employees for refusing to transfer has been referred to Industrial Court.
References
- ^ a b c d e "Hong Leong Bank Berhad 2020 Annual Report" (PDF). Hong Leong Bank Berhad. 30 June 2021. Retrieved 14 July 2021.
- ^ "The Hong Leong Bank Story". Hong Leong Bank. Archived from the original on 9 August 2014. Retrieved 22 July 2015.
- ^ "005 Kwong Lee Bank - Kuching Old Bazaar". 14 February 2021. Retrieved 15 April 2023.
- ^ EON Bank Group is now part of Hong Leong Bank Group
- ^ "Hong Leong Islamic Bank launches Portfolio Investment Account". The Star. Retrieved 29 December 2021.
- ^ a b c d e "HLB Annual Report 2019" (PDF). hlb.com.my. pp. 219–220. Retrieved 12 March 2020.
- ^ "About Us - HL Bank Singapore". Hong Leong Bank. Retrieved 12 March 2020.
- ^ "HL Bank HK".
- ^ "China consumer financing at HLBB's doorstep". The Edge (Malaysia). Retrieved 12 March 2020.
- ^ "Hong Leong Bank's MD speaks out after union's warning of national action". The Edge (Malaysia). Retrieved 24 December 2013.
- ^ Oei, Melody (10 January 2014). "Why Malaysians Are Protesting Against Hong Leong Bank". SAYS. Retrieved 10 January 2014.