Hang Seng earns 21% profit growth in 2018
Hang Seng Bank Limited announced on Tuesday that it has maintained good business momentum and achieved strong results for 2018, with profit attributable to shareholders growing by HK$4.1billion(US$520 million), or 21 percent, to reach HK$24.2 billion.
The good performance was driven by growth in both net interest income and non interest income and the Hong Kong-based lender said that all of its business lines achieved increases in revenue and profitability during the past twelve months.
The bank’s reported net interest income for the whole year of 2018 was HK$30.04 million, 22 percent higher than the previous year. And this was partly boosted by new customers who brought solid growth in loans and deposits, Hang Seng noted.
The bank’s net interest margin improved by 24 basis points to 2.18 percent during the reporting period.
Meanwhile, its non-interest income grew by 4 percent to HK$11.1million, as the downturn in investment sentiment later in the year partly offset the strong performance in the first half.
On top of that, Hang Seng China also recorded strong profit growth, thanks to an increase in its non-interest income business and effective management of overall credit quality.
Data showed that the lender registered a total operating income of HK$2.20 billion for its mainland business in 2018, with the before-tax profit hitting HK$437 million. The number stood at HK$1.91 billion and HK$241 million respectively for the year of 2017.
“Our well-integrated cross-border capabilities and closer cross-business collaboration reinforced our operations in the Chinese mainland,” said Louisa Cheang, vice chairman and chief executive of the Hang Seng Bank.
To deliver on its commitment to providing customers with better financial services, Hang Seng has spent big on technology, staff engagement and operational infrastructure.
For example, the bank expanded the digitization of its services and distribution channels, focusing particularly on mobile platforms to provide easier access and greater choice for its customers.
New digital services such as the all-in-one payment platforms offer retail and commercial clients greater flexibility and ease in making and receiving digital payments, which helped increase their engagement with customers and strengthened the bank’s appeal among younger generations and other target segments, Cheang added.
Also, the Hang Seng bank has teamed up with industry peers and strategic partners such as the Internet giant Tencent Holdings and Hong Kong Science and Technology Parks to strengthen its digital capabilities and create new business opportunities.