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Hang Seng Bank Limited (HK:0011)
:0011

Hang Seng Bank (0011) AI Stock Analysis

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HK:0011

Hang Seng Bank

(0011)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
HK$167.00
▲(8.09% Upside)
The score is driven mainly by solid financial fundamentals (improving leverage and steady ROE), offset by meaningful revenue weakness/volatility that clouds durability. Technicals are supportive with a clear uptrend, but overbought signals reduce near-term attractiveness. Valuation is mixed: a strong dividend yield helps, but the P/E is relatively high.
Positive Factors
Improved Leverage
The significant improvement in leverage indicates better financial health and reduced risk, enhancing the bank's ability to manage debt and invest in growth opportunities.
Steady ROE
A steady and improving ROE suggests effective management and capital utilization, which can lead to sustained shareholder value over time.
Cash Generation
Strong cash generation supports operational flexibility and the ability to fund future investments or return capital to shareholders, ensuring long-term financial stability.
Negative Factors
Revenue Volatility
Significant revenue volatility raises concerns about the bank's ability to maintain stable growth, potentially impacting its long-term financial performance and strategic planning.
Operating Profitability Trends
Inconsistent operating profitability can hinder the bank's ability to achieve predictable earnings, affecting investor confidence and strategic decision-making.
Privatization Proposal
The privatization proposal could lead to significant changes in market positioning and shareholder dynamics, potentially impacting the bank's strategic direction and public perception.

Hang Seng Bank (0011) vs. iShares MSCI Hong Kong ETF (EWH)

Hang Seng Bank Business Overview & Revenue Model

Company DescriptionHang 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 MoneyHang 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue58.20B41.57B34.57B26.70B56.85B65.22B
Gross Profit34.24B41.57B40.82B26.70B30.56B65.22B
EBITDA18.71B0.0022.76B15.63B18.92B0.00
Net Income14.95B18.38B17.14B11.29B13.96B16.69B
Balance Sheet
Total Assets1.82T1.80T1.69T1.89T1.82T1.76T
Cash, Cash Equivalents and Short-Term Investments102.93B165.60B99.23B92.30B89.15B96.60B
Total Debt32.13B37.97B72.92B57.16B60.03B52.54B
Total Liabilities1.65T1.63T1.52T1.72T1.65T1.59T
Stockholders Equity170.67B169.52B168.13B159.93B172.59B171.36B
Cash Flow
Free Cash Flow-43.05B156.90B18.35B64.51B38.28B12.06B
Operating Cash Flow-41.26B158.65B20.10B66.39B40.43B14.17B
Investing Cash Flow-76.73B-83.81B97.57B-42.86B-73.59B-51.61B
Financing Cash Flow71.94B-18.86B-174.63B20.66B35.28B52.76B

Hang Seng Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price154.50
Price Trends
50DMA
152.64
Positive
100DMA
138.36
Positive
200DMA
123.78
Positive
Market Momentum
MACD
0.71
Positive
RSI
76.56
Negative
STOCH
74.07
Neutral
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 154.5 is above the 20-day moving average (MA) of 153.66, above the 50-day MA of 152.64, and above the 200-day MA of 123.78, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 76.56 is Negative, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$224.13B5.025.53%-8.41%-5.52%
68
Neutral
$289.37B20.269.20%4.61%4.44%-15.39%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
HK$15.01B6.696.58%6.54%
64
Neutral
HK$438.54B5.029.71%5.76%-5.46%0.33%
60
Neutral
$407.69B10.1112.04%5.80%1.90%12.81%
57
Neutral
HK$183.35B5.445.16%9.09%-7.28%-5.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0011
Hang Seng Bank
154.50
68.37
79.38%
HK:2388
BOC Hong Kong (Holdings)
38.56
15.62
68.09%
HK:6818
China Everbright Bank Co
3.58
0.88
32.40%
HK:1988
China Minsheng Banking
3.86
0.64
19.95%
HK:0998
China CITIC Bank
6.87
1.96
40.06%
HK:2356
Dah Sing Banking Group
10.68
3.47
48.13%

Hang Seng Bank Corporate Events

HSBC Asia Pacific Plans Privatization and Delisting of Hang Seng Bank
Dec 17, 2025

HSBC Asia Pacific has proposed privatizing Hang Seng Bank through a scheme of arrangement under Section 673 of the Companies Ordinance, alongside a proposed withdrawal of Hang Seng Bank shares from public listing. The updated shareholding structure and holdings information as of 12 December 2025 are disclosed to ensure transparency, potentially impacting investors and stakeholders by streamlining operations and restructuring the bank’s ownership.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Privatization Proposal Announced
Dec 14, 2025

Hang Seng Bank Limited is undergoing a privatization proposal by the Hongkong and Shanghai Banking Corporation Limited, which is part of HSBC Asia Pacific, through a scheme of arrangement under the Companies Ordinance. The announcement details the dispatch of the Scheme Document, which includes the proposal’s specifics, expected timetable, and recommendations from the Hang Seng Bank Independent Board Committee. This move could significantly impact Hang Seng Bank’s market positioning and shareholder dynamics, as it involves the withdrawal of its shares from public listing.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces Court Meeting for Shareholder Scheme Approval
Dec 14, 2025

Hang Seng Bank has announced a court-directed meeting to discuss and potentially approve a scheme of arrangement with its shareholders. This meeting, scheduled for January 8, 2026, will be conducted in a hybrid format, allowing shareholders to participate either in person or online. The scheme aims to restructure the bank’s shareholding, and only shares held by Scheme Shareholders will be eligible for voting. This move could impact the bank’s operational structure and shareholder engagement, reflecting its strategic efforts to align with regulatory requirements and enhance corporate governance.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces General Meeting for Privatization Scheme
Dec 14, 2025

Hang Seng Bank Limited has announced a general meeting to discuss and potentially approve a scheme of arrangement that involves the reduction and subsequent restoration of its share capital. The scheme, if approved, will lead to the privatization of Hang Seng Bank by HSBC Asia Pacific and the withdrawal of its shares from the Hong Kong Stock Exchange. This move is significant as it represents a strategic shift in the bank’s operations and could have implications for its stakeholders, including shareholders and the broader financial market.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces Privatization Proposal and Receives Regulatory Consents
Nov 27, 2025

Hang Seng Bank Limited has announced a proposal for its privatization by The Hongkong and Shanghai Banking Corporation Limited through a scheme of arrangement. The bank has received relevant consents and confirmations from the Executive under the Takeovers Code, allowing certain dealings in its securities by passive index-tracking funds without breaching takeover rules. This move is significant for the bank’s operations and its stakeholders as it navigates regulatory requirements during the privatization process.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces Privatization Proposal and Delisting Plan
Nov 27, 2025

Hang Seng Bank Limited, in conjunction with HSBC Holdings and HSBC Asia Pacific, has announced a proposal for its privatization through a scheme of arrangement under section 673 of the Companies Ordinance. This move includes the proposed withdrawal of Hang Seng Bank shares from listing. The companies are preparing the necessary Scheme Document, which will be dispatched by December 17, 2025, and are seeking High Court directions for a meeting to approve the scheme. The proposal’s implementation is contingent upon satisfying all conditions, and stakeholders are advised to exercise caution in dealing with securities.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces Privatization Proposal and Timeline Update
Oct 30, 2025

Hang Seng Bank Limited, in conjunction with HSBC Holdings and HSBC Asia Pacific, announced a proposal for its privatization through a scheme of arrangement under the Companies Ordinance. The timeline for dispatching the scheme document has been extended to December 17, 2025, with the proposal expected to be completed in the first quarter of 2026, pending satisfaction of all conditions.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Cancels Shares Amid Strategic Proposal
Oct 24, 2025

Hang Seng Bank Limited has announced the cancellation of 2,800,000 shares as part of its Share Buy-back Programme, reducing the total number of issued shares to 1,872,937,536. This move is part of a broader strategy involving a proposal in collaboration with HSBC Holdings plc and The Hongkong and Shanghai Banking Corporation Limited, which may impact the bank’s market positioning and shareholder value. Stakeholders are advised to exercise caution as the proposal’s implementation is contingent upon certain conditions being met.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Appoints Independent Financial Adviser Amid Proposal Developments
Oct 22, 2025

Hang Seng Bank Limited has appointed Somerley Capital Limited as the independent financial adviser in accordance with the Takeovers Code. This move is part of a broader proposal involving HSBC Holdings plc and The Hongkong and Shanghai Banking Corporation Limited. The appointment aims to provide guidance to the Hang Seng Bank IBC, with recommendations to be included in a forthcoming Scheme Document for shareholders. The announcement highlights the conditional nature of the proposal, urging shareholders and potential investors to exercise caution when dealing with the bank’s securities.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces New Executive Leadership
Oct 17, 2025

Hang Seng Bank Limited has announced a change in its board composition, appointing Ms. Luanne Lim as the new Executive Director and Chief Executive, effective October 20, 2025. Ms. Lim will also serve as Chairman of the Operating Committee and a member of the Nomination Committee. She replaces Ms. Diana Cesar, who will step down from her roles and return to The Hongkong and Shanghai Banking Corporation Limited as Vice Chairman, Hong Kong. This leadership transition is expected to influence the bank’s strategic direction and operational focus.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Announces Board Restructuring
Oct 17, 2025

Hang Seng Bank Limited has announced changes to its Board of Directors effective from 20 October 2025, detailing the roles and functions of each member. This restructuring is likely to impact the bank’s governance and strategic direction, potentially influencing its market positioning and stakeholder relationships.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Hang Seng Bank Declares Third Interim Dividend for 2025
Oct 10, 2025

Hang Seng Bank Limited has declared a third interim dividend of HKD 1.30 per share for the financial year ending 31 December 2025. The dividend will be payable on 13 November 2025 to shareholders recorded on 27 October 2025. This announcement reflects the bank’s ongoing commitment to returning value to its shareholders, although it does not necessarily indicate the full year’s profit or dividend levels. The ex-dividend date is set for 23 October 2025, and the bank’s share register will be closed on 27 October 2025.

The most recent analyst rating on (HK:0011) stock is a Buy with a HK$98.70 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

HSBC Proposes Privatization of Hang Seng Bank
Oct 9, 2025

HSBC Asia Pacific has proposed the privatization of Hang Seng Bank through a scheme of arrangement, offering HK$155.00 in cash per share, with certain dividend adjustments. Despite the privatization move, HSBC intends to preserve Hang Seng Bank’s legacy and continue its community support, ensuring the bank retains its separate authorization and brand identity in Hong Kong.

The most recent analyst rating on (HK:0011) stock is a Hold with a HK$108.00 price target. To see the full list of analyst forecasts on Hang Seng Bank stock, see the HK:0011 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025