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Finance

Hang Seng Bank Ltd.

  • 201.00 HKD
  • +0.40
  • +0.20%
  • Hong Kong
    Jun 20, 2019
  • Ticker
    HKG(11)
  • Prev. close
    200.60
  • Market cap (HKD)
    383,515.68M
  • Market cap (USD)
    49,073.71M
  • Shares
    1,911.84M

Company Background

Hang Seng Bank is a major local bank in Hong Kong and a member of the U.K.'s HSBC group.

Hang Seng has a strong presence in Hong Kong's retail banking sector, with more than 240 branches and numerous ATMs set up at MTR stations and shopping malls. More than half of Hong Kong's adult population is said to have an account at Hang Seng Bank.

The bank established a subsidiary in mainland China in 2007 and operates some 50 branches in such cities as Shanghai and Beijing. It plans to focus on selling financial products, such as investment trusts and insurance.

Hang Seng Bank started as a money exchanger in 1933 and was once the largest Chinese-capitalized bank in Hong Kong. But the plunge of the real estate and stock markets in Hong Kong in 1965 triggered a run on the bank. As a result, it eventually went under Hong Kong and Shanghai Banking Corp. umbrella.

Currently, Hong Kong and Shanghai Banking Corp. owns roughly 60% of Hang Seng Bank. The two entities work together closely in many ways, such as sharing ATMs.

The Hang Seng Index, introduced in 1969, is considered Hong Kong's benchmark stock index.

Hang Seng Bank Vice-Chairman and CEO Rose Lee Wai-mun has held key posts at HSBC's Hong Kong division.

Business Summary

Hang Seng Bank Ltd. provides commercial banking and related financial services. It operates through the following business segments: Retail Banking and Wealth Management; Commercial Banking; Global Banking and Markets; and Other. The Retail Banking and Wealth Management segment offers a range of products and services to meet the personal banking, consumer lending, and wealth management needs of individual customers. The Commercial Banking segment provides products and services to corporate, commercial and small-medium enterprise, customers including corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services and corporate wealth management. The Global Banking and Markets segment gives tailored financial solutions to major corporate and institutional clients. The Other segment represents the holdings of premises, investment properties, equity shares and subordinated debt funding as well as central support, and functional costs with associated recoveries. The company was founded by Sin Hang Ho in 1933 and is headquartered in Hong Kong.

Financial Highlights

Dec 2018 HKDUSD
Revenue66,063M8,429.04M
Gross Profit----
Operating income28,054M3,579.43M
Income before tax28,432M3,627.66M
Net income23,863M3,044.70M
EBITDA----
Diluted EPS12.481.59
Dividends Per Share7.500.95
Total Assets1,571.29B200,693.16M
Total liabilities1,416.17B180,879.77M
Total equity155,101M19,810.20M
Operating cash flow16,687M2,129.11M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 49,859M 51,764M 50,587M 55,632M 66,063M
Gross Profit -- -- -- -- --
Operating income 19,487M 19,473M 19,047M 23,557M 28,054M
Income before tax 18,049M 30,488M 19,090M 23,674M 28,432M
Net income 15,131M 27,184M 15,866M 19,693M 23,863M
EBITDA -- -- -- -- --
Diluted EPS 7.91 14.22 8.30 10.30 12.48
Dividends Per Share 5.60 8.70 6.10 6.70 7.50
Total Assets 1,263.99B 1,334.42B 1,377.24B 1,478.41B 1,571.29B
Total liabilities 1,124.79B 1,199.42B 1,243.53B 1,333.32B 1,416.17B
Total equity 139,193M 135,000M 133,645M 145,049M 155,101M
Operating cash flow 31,033M 9,938M 26,469M 34,300M 16,687M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 6,429.53M 6,677.00M 6,516.87M 7,138.88M 8,429.04M
Gross Profit -- -- -- -- --
Operating income 2,512.93M 2,511.81M 2,453.73M 3,022.91M 3,579.43M
Income before tax 2,327.49M 3,932.62M 2,459.27M 3,037.92M 3,627.66M
Net income 1,951.20M 3,506.44M 2,043.94M 2,527.07M 3,044.70M
EBITDA -- -- -- -- --
Diluted EPS 1.02 1.83 1.06 1.32 1.59
Dividends Per Share 0.72 1.12 0.78 0.85 0.95
Total Assets 162,993.48M 172,181.04M 177,636.44M 189,121.30M 200,693.16M
Total liabilities 145,044.33M 154,762.02M 160,391.19M 170,560.16M 180,879.77M
Total equity 17,949.15M 17,419.01M 17,237.50M 18,554.87M 19,810.20M
Operating cash flow 4,001.84M 1,281.89M 3,409.87M 4,401.48M 2,129.11M

Valuation Measures

Dec 2018
PER14.08
ROA1.56%
ROE15.90%
Operating margin42.46%
Profit margin36.12%

Key executives

  • Vice Chairman & Chief Executive Officer: Wai Wan Cheang
  • Chief Operating Officer: Eunice Chan
  • Chief Financial Officer: Wing Lok Leung
  • Head-Regulatory & Compliance: Kay Chun Yip
  • Assistant General Manager: Shun Chuen Lau

Shareholders

  • HSBC Holdings Plc (62.1%)
  • The Vanguard Group, Inc. (1.0%)
  • BlackRock Fund Advisors (0.9%)
  • Norges Bank Investment Management (0.4%)
  • State Street Global Advisors Asia Ltd. (0.3%)
  • Hang Seng Investment Management Ltd. (0.3%)
  • Capital Research & Management Co. (Global Investors) (0.2%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • Geode Capital Management LLC (0.1%)
  • APG Asset Management NV (0.1%)

Contact Details

Related Companies

  • Hang Seng Futures Ltd.
  • Hang Seng Financial Information Ltd.
  • Fulcher Enterprises Co. Ltd.
  • Lion Corporate Services Ltd.
  • Imenson Ltd.
  • High Time Investments Ltd.
  • Yan Nin Development Co. Ltd.
  • Haseba Investment Co. Ltd.
  • Hang Seng (Nominee) Ltd.
  • Hang Seng Bank (Trustee) Ltd.
  • Hang Seng Finance (Bahamas) Ltd.
  • Hang Seng Bank (Bahamas) Ltd.
  • Hang Seng Credit Ltd.
  • Hang Seng Bank (Trustee) Ltd. Defined Benefit Scheme
  • Hang Seng Investment Services Ltd.
  • Hang Seng Bullion Co. Ltd.
  • Hang Seng Data Services Ltd.
  • Hang Seng Bank Ltd. (Singapore)
  • Hang Seng Bank Ltd. (Macau)
  • Hang Seng Real Estate Management Ltd.
  • Hang Seng Finance Ltd.
  • Hang Seng Securities Limited
  • Hang Seng Bank Ltd. /San Francisco/
  • Hang Seng Bank Ltd. /New York/
  • Hang Seng Bank Trustee International Ltd.
  • Hang Seng Bank (China) Ltd.
  • Hang Seng Life Ltd.
  • Hang Seng Insurance Co. Ltd.
  • Hang Seng Investment Management Limited
  • Hang Seng Indexes Co. Ltd.

Competitors

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