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Finance

Hang Seng Bank Ltd.

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-to-medium sized enterprises customers. 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 2020 HKDUSD
Revenue65,409M8,433.34M
Gross Profit----
Operating income20,241M2,609.72M
Income before tax19,414M2,503.09M
Net income16,004M2,063.43M
EBITDA----
Diluted EPS8.361.07
Dividends Per Share5.500.70
Total Assets1,759.78B226,956.55M
Total liabilities1,588.33B204,844.82M
Total equity171,356M22,099.47M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 50,587M 55,632M 66,063M 77,987M 65,409M
Gross Profit -- -- -- -- --
Operating income 19,047M 23,557M 28,054M 28,681M 20,241M
Income before tax 19,090M 23,674M 28,432M 28,813M 19,414M
Net income 15,866M 19,693M 23,863M 24,421M 16,004M
EBITDA -- -- -- -- --
Diluted EPS 8.30 10.30 12.48 12.77 8.36
Dividends Per Share 6.10 6.70 7.50 8.20 5.50
Total Assets 1,377.24B 1,478.41B 1,571.29B 1,676.99B 1,759.78B
Total liabilities 1,243.53B 1,333.32B 1,416.17B 1,509.81B 1,588.33B
Total equity 133,645M 145,049M 155,101M 167,066M 171,356M
Operating cash flow 26,469M 34,300M 16,687M 33,370M --
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 6,516.87M 7,138.88M 8,429.04M 9,953.41M 8,433.34M
Gross Profit -- -- -- -- --
Operating income 2,453.73M 3,022.91M 3,579.43M 3,660.53M 2,609.72M
Income before tax 2,459.27M 3,037.92M 3,627.66M 3,677.37M 2,503.09M
Net income 2,043.94M 2,527.07M 3,044.70M 3,116.83M 2,063.43M
EBITDA -- -- -- -- --
Diluted EPS 1.06 1.32 1.59 1.63 1.07
Dividends Per Share 0.78 0.85 0.95 1.04 0.70
Total Assets 177,636.44M 189,121.30M 200,693.16M 215,225.10M 226,956.55M
Total liabilities 160,391.19M 170,560.16M 180,879.77M 193,770.11M 204,844.82M
Total equity 17,237.50M 18,554.87M 19,810.20M 21,441.25M 22,099.47M
Operating cash flow 3,409.87M 4,401.48M 2,129.11M 4,258.98M --

Valuation Measures

Dec 2020
PER15.98
ROA0.93%
ROE9.45%
Operating margin30.94%
Profit margin24.46%

Key executives

  • Vice Chairman & Chief Executive Officer: Wai Wan Cheang
  • Chief Operating Officer: Eunice Chan
  • Chief Financial Officer: Wing Lok Leung
  • Executive Director & Head-Retail Banking: Wing Han Kwan
  • Head-Commercial Banking: Yin Shing Lam

Shareholders

  • HSBC Holdings Plc (62.1%)
  • BlackRock Fund Advisors (1.3%)
  • The Vanguard Group, Inc. (0.9%)
  • Norges Bank Investment Management (0.3%)
  • Geode Capital Management LLC (0.3%)
  • State Street Global Advisors Asia Ltd. (0.3%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • JPMorgan Investment Management, Inc. (0.1%)
  • Hang Seng Investment Management Ltd. (0.1%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.1%)

Contact Details

Related Companies

  • Fulcher Enterprises Co., 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 Ltd. Defined Benefit Scheme
  • Hang Seng Security Management Ltd.
  • 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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