Hang Seng posts strong rise in net profits
(20 February 2018 – Hong Kong) Hong Kong’s Hang Seng Bank reported a 23 percent rise in net profit for 2017, beating expectations, helped by higher interest income and fee income from stockbroking and fund sales as well as by lower bad debts.
Profit rose to HK$20.02 billion (US$2.6 billion), higher than analysts’ forecast of a 16.5 percent increase to HK$18.88 billion.
Hang Seng’s Chief Executive, Louisa Cheang Wai-wan told reports, “The global economy regained momentum during 2017 and this has continued into the new year. At the same time, the impact of ongoing economic adjustment in mainland China and potential future shifts in international trade policies may create new challenges for business.”
“As Hong Kong’s leading domestic bank, we will launch more fintech initiatives that align with our customer-centric business strategy to help drive in a new era of ‘smart banking’ in our city,” she said.
Cheang added that the Hong Kong bank will launch a second public fund in the near future at its joint venture fund house in the commercial zone of Qianhai in southern China.
Strong growth within its wealth unit, lending and deposits and fee income, saw the bank’s operating profit increased 24 percent to HK$23.55 billion.
Buoyed by higher consumer lending, and investments, Hang Seng’s net interest income rose 10 percent to HK$24.58 billion, while its net interest margin increased from 1.85 percent to 1.94 percent in 2017.
Non-interest income grew to HK$10.78 billion, marking a 29 percent jump.
An improvement in lending and credit conditions in mainland China saw the bank’s bad debt provisions drop 21 percent compared to 2016, to HK$1.04 billion.
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