Hang Seng Bank today announced its financial results for the first half of 2025, demonstrating notable progress in business diversification despite a challenging macroeconomic environment.

Fee and other income rose by 34% year on year, accounting for 31.6% of total revenue, driven by strong growth in wealth management and investment services. The Bank’s strategic focus on diversifying revenue has supported a 3% increase in net operating income before expected credit losses (ECL) to HKD 20,975 million ($2,684.8 million).

In light of the ongoing uncertainties including the threat of trade tariffs, sustained high interest rates and prolonged downturn in the commercial property market, the Bank prudently increased provisions, with ECL recorded at HKD 4,861 million ($622.2 million). Gross impaired loans and advances stood at HKD 55 billion as of 30 June 2025.

Profit before tax for the period was HKD 8,097 million ($1,036.4 million) (HKD 11,307 million in first half of 2024). Profit attributable to shareholders was HKD 6,880 million ($880.6 million). Earnings per share were HKD 3.34 ($0.4), with a return on average ordinary shareholders’ equity of 7.9%. The Bank maintains a strong capital base, with its common equity tier 1 (CET1) capital ratio at 21.3% as of 30 June 2025.

The Directors have declared a second interim dividend of HKD 1.30 per share ($0.2), bringing the total payout for the first half of 2025 to HKD 2.60 per share ($0.3), 8% higher than the same period last year. The Bank also announced its intention to initiate a share buy-back of up to HKD 3 billion ($384.0 million).

Diana Cesar, executive director and chief executive of Hang Seng Bank, said: Despite an uncertain market, our business remains resilient, underpinned by our long-term strategy to diversify our revenue sources and expand our customer base. We continue to manage risks prudently while building a strong foundation for future growth. Signs of recovery are emerging, we are optimistic about long-term opportunities in Hong Kong. Our focus remains on building a future-ready business by investing in talent and cutting-edge digital capabilities. With our resilient profit-generating capabilities, we are confident to navigate challenges with agility and position ourselves for sustainable growth.”

Hang Seng Bank 2025 interim results – highlights

• Net operating income before change in expected credit losses and other credit impairment charges up 3% to HKD 20,975 million ($2,684.8 million)
• Operating profit down 25% to HKD 8,549 million ($1,094.3 million)
• Profit before tax down 28% to HKD 8,097 million ($1,036.4 million)
• Profit attributable to shareholders down 30% to HKD 6,880 million ($880.6 million)
• Earnings per share down 34% to HKD 3.34 ($0.4)
• Return on average ordinary shareholders’ equity of 7.9% (12.4% in first half of 2024)
• Second interim dividend of HKD 1.30 per share ($0.17); total dividends of HKD 2.60 per share ($0.3) in first half of 2025 (HKD 2.40 per share in first half of 2024)
• Share buy-back of up to HKD 3 billion ($384.0 million) planned within six months
• CET1 capital ratio of 21.3%, tier 1 capital ratio of 23.3% and total capital ratio of 24.9% as at 30 June 2025
• Cost efficiency ratio of 36.1% (36.8% in first half of 2024)
• Total assets at HKD 1,822 billion ($233.2 billion)
• Customer loans and advances at HKD 803 billion ($102.8 billion)
• Customer deposits at HKD 1,300 billion ($166.4 billion)
• Shareholders’ equity at HKD 170.7 billion ($21.9 billion)

Redisseminated by The Asian Banker