Hang Seng Bank (0011) AI Stock Analysis

• Market Cap: $222.11B
• Dividend Yield: 4.41%
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.65
• Revenue Growth: -2.77%
• EPS Growth: 4.04%
• Country: HK
• Employees: 8,328
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 4.29
• Shares Outstanding: 1,882,267,600
• 10 Day Avg. Volume: 1,655,136
• 30 Day Avg. Volume: 1,773,254
• PEG Ratio: 14.26
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $84.97
• Price Target Upside: -27.99% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Hang Seng Bank exhibits strong financial performance marked by robust revenue growth and prudent balance sheet management. The technical indicators suggest a positive price trend, although a lack of detailed momentum data is a limitation. The valuation is compelling with a favorable P/E ratio and a high dividend yield, making it attractive for income-focused investors.

Hang Seng Bank Business Overview & Revenue Model

Company Description

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Wealth and Personal Banking, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, time deposits, mortgages and personal loans, credit cards, and insurance, investment, and other wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services, and corporate wealth management; and general banking, corporate lending, interest rates, foreign exchange, money markets, structured products and derivatives, etc. In addition, the company offers retirement benefits, life assurance, fund management, and stock broking services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates approximately 280 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei, Taiwan. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, also operates a network of outlets in approximately 20 cities in Mainland China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

How the Company Makes Money

Hang Seng Bank generates revenue through multiple streams, primarily from interest income on loans and advances, including mortgages, personal loans, and corporate lending. Additionally, the bank earns non-interest income through fees and commissions related to wealth management services, investment banking, and trading activities. The treasury segment contributes to earnings through managing the bank's liquidity, interest rate, and foreign exchange risks. Hang Seng Bank also benefits from its strategic partnership with HSBC, leveraging global resources and network to enhance its product offerings and market reach.

Hang Seng Bank Financial Statement Overview

Summary

Hang Seng Bank demonstrates robust financial health with strong revenue growth, stable profitability, and prudent balance sheet management. The absence of reported EBIT and EBITDA figures in 2024 requires careful consideration when evaluating operational efficiency. Overall, the bank is well-positioned with low leverage and strong cash flow generation capabilities.

Income Statement

Hang Seng Bank shows a strong gross profit margin over recent years, indicative of effective cost management. The revenue growth rate from 2023 to 2024 is robust at 20.23%, demonstrating strong performance. However, EBIT and EBITDA were not reported for 2024, potentially skewing analysis on operational efficiency. Net profit margin remains healthy, showing consistent profitability.

Balance Sheet

The bank maintains a solid equity base with an impressive equity ratio and no debt in 2024, indicating financial stability. The debt-to-equity ratio was zero in 2024, reflecting prudent balance sheet management and low leverage risk. Return on equity slightly increased, showing effective use of equity to generate profits.

Cash Flow

Cash flow generation is strong, with substantial free cash flow growth from 2023 to 2024. The operating cash flow to net income ratio is high, indicating efficient cash operations. The free cash flow to net income ratio also indicates strong cash generation relative to net income, although a large portion of cash flows are allocated to investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.57B	34.57B	71.00B	56.85B	65.22B
Gross Profit	41.57B	82.55B	71.00B	56.85B	65.22B
EBITDA	0.00	22.76B	15.47B	18.92B	0.00
Net Income	18.38B	17.14B	11.29B	13.96B	16.69B
Balance Sheet
Total Assets	1.80T	1.69T	1.89T	1.82T	1.76T
Cash, Cash Equivalents and Short-Term Investments	165.60B	99.23B	118.47B	84.64B	96.60B
Total Debt	37.97B	74.88B	57.16B	60.03B	52.54B
Total Liabilities	1.63T	1.52T	1.72T	1.65T	1.59T
Stockholders Equity	169.52B	168.13B	172.15B	172.59B	171.36B
Cash Flow
Free Cash Flow	156.90B	18.35B	64.51B	38.28B	12.06B
Operating Cash Flow	158.65B	20.10B	66.39B	40.43B	14.17B
Investing Cash Flow	-83.81B	97.57B	-42.86B	-73.59B	-51.61B
Financing Cash Flow	-18.86B	-174.63B	20.66B	35.28B	52.76B

Hang Seng Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 118.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0011, the sentiment is Positive. The current price of 118 is above the 20-day moving average (MA) of 114.73, above the 50-day MA of 109.94, and above the 200-day MA of 98.16, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 83.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0011.

Hang Seng Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0011	76 Outperform	$222.11B	12.65	11.23%	4.41%	-2.77%	4.04%
Sector *	68 Neutral	€16.12B	12.49	14.11%	5.29%	7.09%	0.17%
BNKHF		$48.69B	10.03	11.58%	3.14%	―	―
CEBCF		$33.32B	5.86	7.87%	0.78%	―	―
CGMBF		$28.54B	4.61	5.54%	7.10%	―	―
CHBJF		$62.63B	6.03		0.66%	―	―
2356		HK$12.86B	6.24	6.23%	8.64%	―	―

Hang Seng Bank Corporate Events

Hang Seng Bank Declares First Interim Dividend for 2025

Hang Seng Bank Limited has announced a first interim dividend of HKD 1.30 per share for the financial year ending December 31, 2025. The dividend will be paid on June 5, 2025, to shareholders recorded by May 16, 2025. This announcement does not indicate the bank’s full-year profit or dividend levels, and the shares will trade ex-dividend starting May 14, 2025.

Hang Seng Bank Schedules Board Meeting to Discuss Interim Dividend

Hang Seng Bank Limited has announced a Board Committee meeting scheduled for April 29, 2025, to discuss the declaration of the bank’s first interim dividend for 2025. This meeting could impact the bank’s financial strategy and shareholder returns, reflecting its ongoing commitment to stakeholder engagement and financial performance.

Hang Seng Bank Appoints New Independent Non-executive Director

Hang Seng Bank Limited has announced the appointment of Edward Cheng Wai Sun as an Independent Non-executive Director effective from April 1, 2025. Cheng will also serve on several key committees, including the Nomination, Audit, Risk, and Remuneration Committees, potentially enhancing the bank’s governance and strategic oversight.

Hang Seng Bank Announces 2025 Annual General Meeting

Hang Seng Bank Limited has announced its Annual General Meeting (AGM) scheduled for May 8, 2025, at its headquarters in Hong Kong and online. The AGM will address several key resolutions, including the consideration of audited financial statements for 2024, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as the bank’s auditor. Additionally, the meeting will discuss granting a general mandate to the bank’s directors to issue additional shares and manage treasury shares, which could impact the bank’s capital structure and shareholder value.

Hang Seng Bank Proposes Amendments to Modernize Articles of Association

Hang Seng Bank Limited’s Board of Directors has approved proposed amendments to its Articles of Association, aiming to align with the Companies (Amendment) Ordinance 2025 and the updated paperless listing regime. These changes, which require shareholder approval at the 2025 AGM, will allow the bank to manage treasury shares and enhance electronic communication, reflecting a strategic move to modernize its corporate governance framework.

Hang Seng Bank Announces Board Changes with New Chairman Appointment

Hang Seng Bank Limited has announced changes in its Board composition, with Ms. Irene Lee retiring as Chairman and Independent Non-executive Director, effective after the May 2025 AGM. She is succeeded by Mr. Edward Cheng, who will join the Board as an Independent Non-executive Director and assume the role of Chairman post-AGM. This transition is expected to ensure continuity and stability, leveraging Mr. Cheng’s extensive experience in finance and business to maintain the bank’s strategic direction and governance improvements.

Hang Seng Bank Achieves Robust Financial Growth in 2024

Hang Seng Bank reported strong financial results for 2024, with an 8% increase in operating profit to HK$21,558 million and a 26% rise in non-interest income, driven by revenue diversification and customer base expansion. Despite geopolitical and macroeconomic challenges, the bank increased its affluent customer numbers and maintained a stable return on equity, highlighting its strategic growth in the Hong Kong and mainland China markets.

Hang Seng Bank Declares Fourth Interim Dividend for 2024

Hang Seng Bank has announced a fourth interim dividend of HKD 3.20 per share for the year ending December 2024, payable on March 27, 2025. This brings the total dividend for 2024 to HKD 6.80 per share, demonstrating the bank’s commitment to returning value to its shareholders. The announcement is indicative of the bank’s robust financial health and strategic focus on maintaining shareholder confidence, potentially enhancing its position in the competitive banking sector.

Hang Seng Bank to Announce 2024 Financial Results and Dividend

Hang Seng Bank Limited has announced an upcoming Board Committee meeting scheduled for February 19, 2025, where they will approve the bank’s final results for the year ending December 31, 2024, and consider declaring the fourth interim dividend for 2024. This meeting is significant as it impacts the bank’s operational outcomes and provides insights into its financial performance, which can influence stakeholder decisions and market perceptions.