Hang Seng Bank has announced a significant 58% increase in annual net profit, attributing the growth to higher net interest income and operating income following the post-pandemic economic recovery and border reopening.
Key Highlights:
- Net Profit: Soared to 17.85 billion Hong Kong dollars (US$2.28 billion) from HK$11.29 billion in 2022.
- Net Interest Income: Increased by 26% to HK$32.295 billion, driven by higher market interest rates despite a decrease in the loan portfolio.
- Operating Income: Before changes in expected credit losses and other credit impairment charges, operating income rose to HK$40.82 billion from HK$34.40 billion.
“We have refocused the business and diversified our income streams amid a tough year,” said Chief Executive Diana Cesar.
Business Growth and Strategies:
Hang Seng Bank faced challenges due to market uncertainties regarding economic conditions and anticipated prolonged high interest rates. Nevertheless, the bank managed to boost its net interest income through proactive management of loan and deposit portfolios.
Moreover, the institution successfully reduced its exposure to China’s commercial real estate sector by 33%, showcasing effective derisking strategies.
Enhanced Efficiency and Financial Performance:
With a cost-efficiency ratio of 35.8%, Hang Seng Bank demonstrated improved operational efficiency compared to the previous year’s 40.1%.
For more information, contact Hang Seng Bank directly.
