About Hong Leong Financial Group Berhad

Hong Leong Financial Group Berhad offers an integrated suite of conventional and Islamic financial products and services. The company operates as a subsidiary of Hong Leong Company (Malaysia) Berhad (Hlcm). The company is an investment holding company and has three core businesses in the company: Commercial and Islamic banking under Hong Leong Bank Berhad ('HLB'); Insurance and Family Takaful, housed under the company's insurance holding company HLA Holdings Sdn Bhd ('HLAH'); and Investment banking and asset management under Hong Leong Capital Berhad ('HLCB'). Businesses Commercial and Islamic Banking: Includes Personal Financial Services, Business & Corporate Banking, Global Markets, and Islamic Financial Services. Investment Banking: Includes Investment Banking, Stockbroking, and Asset Management. Insurance and Takaful: Includes Life & General Insurance and Family Takaful. Business & Corporate Banking ('BCB') BCB is committed to deliver exceptional customer experiences through the company's digital banking innovations. The company has enhanced its corporate internet banking platform Hong Leong ConnectFirst ('HLCF') to include improved digital onboarding experience for account opening and rolled out various new features, including multilingual options, introduction of eTokens usage, and incorporation of a treasury module for FX transactions. In terms of new products, BCB launched the PrimeBiz Current Account, a business current account service that offers rebates for current account balances to offset against selected banking charges. The bank has also intensified its customer engagement and outreach efforts through nationwide Transaction Banking roadshows, where the company's experienced specialists shared valuable insights into market outlook and showcase how BCB can support the company's SME customers to take advantage of potential market opportunities. Global Markets ('GM') In FY2023, GM operated under tough and volatile market conditions, including lower portfolio yields, mark-to-market impact on bond portfolios and pressure from higher funding cost coupled with lower FX transaction volume. During the financial year, GM collaborated closely with internal partners and clients to deliver innovative treasury solutions with an enhanced treasury module, HLCF Live, that allowed corporate clients to directly book spot FX rates with the bank to also include forward FX contracts. This has helped to drive FX volume within the company's SME and corporate segments. Islamic Banking Hong Leong Islamic Bank Berhad ('HLISB') aims to be a one-stop Islamic bank that provides innovative financial solutions tailored to the diverse and evolving needs of the communities that the company serves. The company is committed to offer innovative digital banking solutions while adhering to its core values of Shariah-compliant financial services. Overseas Banking Operations The strategic priorities for HLBCAM (Hong Leong Bank Cambodia) are focused on accelerating customer acquisition and growing the local deposit base, while effectively managing and expanding the lending book with qualified existing customers. Insurance/Takaful Financial & Operational Review HLFG's 100%-owned subsidiary, HLA Holdings Sdn Bhd ('HLAH') is the insurance holding company of the company's insurance division. HLAH holds 70% equity interest in life insurance company, Hong Leong Assurance Berhad ('HLA'); 65% equity interest in Family Takaful operator Hong Leong MSIG Takaful Berhad ('HLMT'); 100% equity interest in Hong Kong general insurance company, Hong Leong Insurance (Asia) Limited ('HLIA'); 100% equity interest in Singapore general insurance company, HL Assurance Pte. Ltd. ('HLAS'); and 30% equity interest in general insurance company, MSIG Insurance (Malaysia) Bhd ('MSIG'). Life Insurance HLA operates as a life insurer and is the largest operating business within the company's insurance division. In terms of distribution, HLA continues to focus on building a productive and professional agency force while executing its bancassurance by leveraging off the distribution network of its sister company HLB's wide network of branches. Family Takaful The company's Family Takaful business was supported by a robust banca channel, network of affinity partners and an enlarged agency distribution that has more than 5,500 agents. Overseas General Insurance The company's overseas general insurance companies, namely HLAS in Singapore and HLIA in Hong Kong, operate a business focusing on online distribution channels in their digital-led and data-driven business model. Notably, HLAS' corporate insurance segment also underwent an accelerated expansion in line with its strategic distribution efforts and diversified portfolio strategy. HLIA has adeptly diversified its insurance distribution channels, effectively leveraging affinity partnerships and intermediary collaborations to facilitate rapid growth in the company's customer base. MSIG General Insurance MSIG Insurance (Malaysia) is the company's general insurance associate. MSIG Insurance (Malaysia) is also ranked No.2 based on gross direct premium in the local general insurance industry, solidifying its position as one of the leading general insurers in Malaysia. Moving forward, MSIG Insurance (Malaysia) will continue to focus on further digitalizing its services, developing products in line with market trends, growing strategic segments and exploring new partnerships to equip the company with sustainable long-term growth. Investment Banking Financial & Operational Review HLCB is an investment holding company for the company's investment banking, stockbroking, and asset management business. HLCB's key operating subsidiary companies are 100%-owned Hong Leong Investment Bank Berhad ('HLIB'), 100%-owned Hong Leong Asset Management Bhd ('HLAM') and HLAM's 100%-owned Hong Leong Islamic Asset Management Sdn Bhd ('HLISAM'). HLIB provides a full range of investment banking services encompassing Debt Markets, Equity Markets and Treasury & Markets, while its Stockbroking services are provided through the head office at Menara Hong Leong, branches, and several regional hubs across Malaysia. HLAM and HLISAM are fund management, Islamic fund management and unit trust companies offering and managing a broad spectrum of investment solutions through equities, fixed income, money market and multi-assets for segregated customized portfolios, unit trust funds and wholesale funds. Stockbroking The company's retail foreign share trading business offers access to eight foreign markets. Asset Management On 9 January 2023, HLAM launched its second ESG fund, notably its maiden Shariah-compliant ESG fund, the Hong Leong Global Shariah ESG Fund that is designed to yield medium to long-term capital growth by investing in a globally diversified portfolio of companies that prioritize ESG criteria in their investment processes. This product expands the accessibility of sustainable investing to a wider spectrum of clients. Strategic Priorities The company's commercial banking business, HLB, is committed to invest in market-relevant capabilities. HLB is serving 2.6 million or almost three-quarters of its retail banking customers digitally. In addition, more than 120,000 business customers' banking needs are fulfilled over their digital platforms. HLB HLB Financed over RM390 million for battery electric vehicles ('BEV'), hybrid electric vehicles ('HEV'), and plug-in hybrid electric vehicles ('PHEV'). HLB Cumulatively approved over RM13 billion for Green Mortgage & Affordable Property Financing. HLB Cumulatively approved over RM3 billion for Solar, Bioenergy, Small Hydro & Any RE* projects. HLCB HLCB Mandated with up to RM1.4 billion programme limits for financing of renewable energy projects. HLCB Launched Hong Leong Global Shariah ESG Fund ('HLGSESGF') to increase accessibility to sustainable investing. HLAH HLAH Adopted Robotic Process Automation across business processes to increase productivity and accuracy. HLAH Conducted HLA L.I.V.E Hour to engage employees, covering trending topics, such as Mental Health Awareness. Business Segments The company comprises the following main business segments: Commercial Banking - This segment includes commercial banking business. Investment banking and asset management: This segment includes investment banking, futures and stock broking, fund and unit trust management. Insurance - This segment includes life and general insurance and family takaful business. Other Operations - This segment includes investment holding and provision of management services. History The company was incorporated in 1968. It was formerly known as Hong Leong Credit Berhad and changed its name to Hong Leong Financial Group Berhad in 2006.