Hang Seng Bank's profit up by 58% to $2.28B in 2023

Published on 21 February 2024
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Hang Seng Bank's profit up by 58% to $2.28B in 2023

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Hang Seng Bank reported strong financial results for the year 2023, amid economic volatility, advancing growth, innovation, and sustainability strategies.

In the reporting period, Hang Seng has exercised caution in risk management and prioritised cost efficiency, resulting in a significant year-on-year increase in profit attributed to shareholders of 58% to HKD 17,848 million ($2.28 billion). Earnings per share rose by 62% to HKD 8.97 ($1.15)

Diana Cesar, executive director and chief executive of Hang Seng Bank said: “We have refocused the business and diversified our income streams amid a tough year. The results are encouraging and a testament to the success of our strategy and approach. Whatever the pace of economic recovery, we are well-positioned to sustain our performance. We will continue to support our customers, the Hong Kong community and the Greater Bay Area.”

Net interest income up 26% to HKD 32,295 million ($4.1 billion) from HKD 25,551 million ($3.26 billion) in 2022, with net interest margin widening by 55 basis points to 2.30% from 1.75%.

2023 Annual Results - Highlights

Net operating income before change in expected credit losses and other credit impairment charges up 19% to HKD 40,822 million ($5.2 billion) from HKD 34,399 million ($4.3 billion) in 2022.
Profit attributable to shareholders up 58% to HKD 17,848 million ($2.2 billion ) from HKD 11,286 million ($1.4 billion), and earnings per share up 62% to HKD 8.97 ($1.15) per share from HKD 5.53 ($0.71) per share in 2022.
Return on average ordinary shareholders’ equity of 11.3%, up from 7.2% in 2022.
Fourth interim dividend of HKD 3.20 ($0.41) per share; total dividends of HKD 6.50 ($0.83) per share for 2023 from HKD 4.10 ($0.52) per share in 2022.
Common equity tier 1 (CET1) capital ratio of 18.1%, tier 1 (T1) capital ratio of 19.9% and total capital ratio of 21.4% at 31 December 2023 (CET1 capital ratio of 15.2%, T1 capital ratio of 16.8% and total capital ratio of 18.1% at 31 December 2022).
Cost efficiency ratio of 35.8% (40.1% in 2022).

Re-disseminated by The Asian Banker