CT AWARDS SPOTLIGHT 2026: Habib Bank Zurich (Hong Kong) Limited

Habib Bank Zurich (Hong Kong) Limited (HBZHK), a Restricted Licence Bank recorded strong growth in 2025 while continuing to focus on what it does best: helping companies finance trade and manage the practical challenges of cross-border business.

Notably, the bank strengthened its standing as a specialist trade-finance institution in 2025 by delivering record growth. Total assets rose 31% year-on-year to HK$4.5 billion ($574 million), deposits increased 46% to HK$3.2 billion and gross advances grew 27% to HK$2.8 billion. Revenue reached HK$185 million, up 12%, while the sell-down of financial-institution assets increased 345%.

The growth reflects HBZHK’s decision to build deeper client relationships and pursue more complex, higher-value mandates. Corporate and mid-corporate clients now account for 87% of the portfolio, compared with 31% in 2018, yet asset quality remains strong: the non-performing loan ratio stayed at around 1%.

More than 40% of customers have banked with HBZHK for over a decade, underscoring the durability of its relationship model.

This progress was particularly evident in trade. HBZHK supported regional and multinational companies with tailored letters of credit, post-acceptance discounting and liquidity solutions linked to multi-country supply chains, helping them improve procurement cycles, cash conversion and access to new markets.

Some of its most effective innovation addressed a basic client frustration: the time and paperwork involved in opening a new banking relationship for a single transaction.

For example, HBZHK could see that investment-grade companies were often reluctant to establish a new banking relationship for specific LC-backed transactions because opening a full operating account involved lengthy documentation, KYC processes and ongoing administration. It responded with a dedicated Transactional Trade Account Solution – a purpose-built, ring-fenced account tied to a specific facility, including LC confirmation and discounting or post-acceptance discounting.

The solution shortened the onboarding process without weakening the bank’s controls. During the awards period, it helped HBZHK bring on four investment-grade companies. Each relationship generated immediate fee income and funded-asset growth, while establishing a foothold with high-quality counterparties.

The bank also demonstrated its structuring capabilities through an assignment-of-proceeds transaction for a corporate client. Using a conditional pledge, HBZHK enabled proceeds from an export letter of credit to be assigned to the client’s lending bank, giving that lender sufficient comfort to provide an import loan.

HBZHK also continued to reduce its reliance on paper and improve its web banking, onboarding and transaction-tracking processes. Printing fell 48% year on year, while foreign-exchange volumes increased by over 85%. New fintech tools strengthened identity checks and KYC accuracy, helping clients avoid unnecessary administrative delays.

For SMEs, this meant quicker access to trade facilities and more guidance through onboarding; for larger companies, it supported more structured handling of complex cross-border requirements.

HBZHK’s results show that a relatively focused institution can grow without giving up the responsiveness that clients value. A combination of trade-finance expertise, careful risk management and practical problem solving has helped companies manage working capital more effectively and conduct cross-border business with greater confidence.

“This [award] recognition reflects the collective efforts of our team, our focus and dedication to our valued clients, and an exciting start to the rest of our journey,” said Sachil Dagur, Chief Executive Officer of HBZHK. “As we evolve, our commitment to providing specialist expertise, long-term relationships and client success remains unchanged.”

Contact

Corporate Communications Team
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