Hang Seng Bank marks 80th anniversary with 15pc profit rise
Lender celebrates 80th birthday as net income climbs to HK$19.4 billion to meet market target, but analysts warn of challenging year ahead
Hang Seng Bank yesterday marked its 80th birthday with a 15 per cent rise in net profit for last year, which was driven by an increase in fee income and a drop in bad-debt provisions.
Analysts warn of a challenging year ahead because of macroeconomic uncertainties facing the mainland and Hong Kong.
The HSBC subsidiary said net profit was HK$19.43 billion, just ahead of market expectations.
Vice-chairman and chief executive Rose Lee Wai-mun said profit growth was also driven by the sale of its general-insurance business, while contributions from associates rose 33 per cent, mainly from Industrial Bank on the mainland.
Hang Seng said in January that it would no longer account for Industrial Bank as an associate following its completion of a private placement but it would report it as a financial investment.
"Looking ahead, we believe this year we will continue to see stable growth in loans and other business as the mainland's exports have increased while Hong Kong's unemployment rate is low," Lee said after cutting a cake to celebrate the bank's birthday. The bank was set up on March 3, 1933.
