Hang Seng Bank's 2023 Net Profit Rose on Postpandemic Recovery
By Jiahui Huang
Hang Seng Bank reported a 58% increase in annual net profit, driven by higher net interest income and operating income thanks to the postpandemic economic recovery and border reopening.
Net profit rose to 17.85 billion Hong Kong dollars (US$2.28 billion) from HK$11.29 billion in 2022, the Hong Kong-based bank said Wednesday.
Net interest income rose 26% to HK$32.295 billion, thanks to higher market interest rates, which more than offset a drop in loan portfolio. Net operating income before changes in expected credit losses and other credit impairment charges rose to HK$40.82 billion from HK$34.40 billion.
"We have refocused the business and diversified our income streams amid a tough year," Chief Executive Diana Cesar said.
Hang Seng Bank said business growth was limited by market concerns about volatile economic conditions and expectations of prolonged high interest rates. Still, the lender increased its net interest income through "proactive loan and deposit portfolio management."
The bank said it also made good progress in derisking, reducing its exposure to China's commercial real-estate sector by 33%.
Hang Seng Bank reported a cost-efficiency ratio of 35.8%, compared with 40.1% in 2022.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
February 21, 2024 00:20 ET (05:20 GMT)
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