Hang Seng Bank dives nearly 7 percent following positive profit report

Shares of Hang Seng Bank (0011) fell just below 7 percent after the company disclosed that its net profit beat market expectations while declaring an unchanged interim dividend.

The bank reported a net profit of HK$18.38 billion in 2024, a year-on-year increase of 3 percent, versus the market estimate up to HK$17.68 billion, thanks to significant growth in non-interest income among diversified income sources.

It kept its interim dividend for the latter half of the year at HK$3.20 per share, the same as that for the corresponding period in 2023.

Total dividends for the year amounted to HK$6.80 per share, up nearly 5 percent.

Despite a 5 percent drop in net interest income to HK$30.78 billion and a 10-basis-point narrowing in net interest margin to 2.2 percent, its non-interest income surged 26 percent to HK$10.75 billion, contributing to overall profit growth.

The bank meanwhile recorded a non-performing loan ratio of 6.12 percent, a slight increase over the 5.32 percent seen at the end of June, noting that some Hong Kong property developers had required delayed repayment amid cash flow pressure.

STAFF REPORTER