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Hang Seng Bank

DB:HSB
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HSB
DB
HK$364B
Market Cap
  1. Home
  2. DE
  3. Banks
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. The last earnings update was 5 days ago. More info.


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HSB Share Price and Events
7 Day Returns
-0.3%
DB:HSB
4.8%
DE Banks
2.1%
DE Market
1 Year Returns
10.1%
DB:HSB
-33.6%
DE Banks
-7.6%
DE Market
HSB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hang Seng Bank (HSB) -0.3% 0.5% 10.3% 10.1% 39.7% 88.5%
DE Banks 4.8% 6.8% 11.9% -33.6% -5.5% -21.2%
DE Market 2.1% 3.6% 8.1% -7.6% 9.8% 12.4%
1 Year Return vs Industry and Market
  • HSB outperformed the Banks industry which returned -33.6% over the past year.
  • HSB outperformed the Market in Germany which returned -7.6% over the past year.
Price Volatility
HSB
Industry
5yr Volatility vs Market

Value

 Is Hang Seng Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hang Seng Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hang Seng Bank.

DB:HSB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= HK$91.29 * 15.5%
HK$14.15
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. HK$91.29
Discount Rate (Cost of Equity) See below 5.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HSB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.598 (1 + (1- 25%) (3.04%))
0.74
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 6.65%)
5.55%

Discounted Cash Flow Calculation for DB:HSB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Hang Seng Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:HSB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.5% – 5.55%) * HK$91.29)
HK$9.08
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= HK$9.08 / (5.55% - 0.23%)
HK$170.72
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= HK$91.29 + HK$170.72
HK$262.01
DB:HSB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HSB represents 0.11129x of SEHK:11
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11129x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 262.01 x 0.11129
€29.16
Value per share (EUR) From above. €29.16
Current discount Discount to share price of €21.19
= -1 x (€21.19 - €29.16) / €29.16
27.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hang Seng Bank is available for.
Intrinsic value
27%
Share price is €21.19 vs Future cash flow value of €29.16
Current Discount Checks
For Hang Seng Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hang Seng Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hang Seng Bank's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hang Seng Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hang Seng Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HSB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$12.48
SEHK:11 Share Price ** SEHK (2019-03-20) in HKD HK$190.4
Germany Banks Industry PE Ratio Median Figure of 6 Publicly-Listed Banks Companies 14.62x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 18.91x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hang Seng Bank.

DB:HSB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:11 Share Price ÷ EPS (both in HKD)

= 190.4 ÷ 12.48

15.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hang Seng Bank is overvalued based on earnings compared to the DE Banks industry average.
  • Hang Seng Bank is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Hang Seng Bank's expected growth come at a high price?
Raw Data
DB:HSB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
4.2%per year
Europe Banks Industry PEG Ratio Median Figure of 108 Publicly-Listed Banks Companies 0.74x
Germany Market PEG Ratio Median Figure of 276 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

DB:HSB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.25x ÷ 4.2%

3.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hang Seng Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hang Seng Bank's assets?
Raw Data
DB:HSB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$84.78
SEHK:11 Share Price * SEHK (2019-03-20) in HKD HK$190.4
Germany Banks Industry PB Ratio Median Figure of 6 Publicly-Listed Banks Companies 0.89x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.79x
DB:HSB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:11 Share Price ÷ Book Value per Share (both in HKD)

= 190.4 ÷ 84.78

2.25x

* Primary Listing of Hang Seng Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hang Seng Bank is overvalued based on assets compared to the DE Banks industry average.
X
Value checks
We assess Hang Seng Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Hang Seng Bank has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hang Seng Bank expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hang Seng Bank expected to grow at an attractive rate?
  • Hang Seng Bank's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Hang Seng Bank's earnings growth is positive but not above the Germany market average.
  • Hang Seng Bank's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HSB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HSB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 4.2%
DB:HSB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 7.3%
Germany Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
Europe Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HSB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HSB Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 48,450 26,864 6
2020-12-31 46,645 26,287 9
2019-12-31 43,979 25,010 9
DB:HSB Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 38,895 -46,747 23,863
2018-09-30 37,544 -70,768 23,183
2018-06-30 36,192 -94,788 22,502
2018-03-31 34,799 -80,184 21,098
2017-12-31 33,405 -65,580 19,693
2017-09-30 31,814 -38,856 18,696
2017-06-30 30,222 -12,131 17,699
2017-03-31 28,638 4,074 16,783
2016-12-31 27,053 20,278 15,866
2016-09-30 26,231 5,674 15,504
2016-06-30 25,408 -8,930 15,141
2016-03-31 31,411 -28,568 21,163

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hang Seng Bank's earnings are expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
  • Hang Seng Bank's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HSB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Hang Seng Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HSB Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 14.00 15.07 12.90 7.00
2020-12-31 13.63 14.74 12.41 12.00
2019-12-31 12.96 13.89 12.10 12.00
DB:HSB Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 12.48
2018-09-30 12.13
2018-06-30 11.77
2018-03-31 11.04
2017-12-31 10.30
2017-09-30 9.78
2017-06-30 9.26
2017-03-31 8.78
2016-12-31 8.30
2016-09-30 8.11
2016-06-30 7.92
2016-03-31 11.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hang Seng Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hang Seng Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hang Seng Bank has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hang Seng Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hang Seng Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hang Seng Bank's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Hang Seng Bank's 1-year earnings growth exceeds its 5-year average (21.2% vs -0.3%)
  • Hang Seng Bank's earnings growth has exceeded the DE Banks industry average in the past year (21.2% vs 5.5%).
Earnings and Revenue History
Hang Seng Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hang Seng Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HSB Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 38,895.00 23,863.00 12,044.00
2018-09-30 37,543.50 23,182.50 11,585.00
2018-06-30 36,192.00 22,502.00 11,126.00
2018-03-31 34,798.50 21,097.50 10,893.50
2017-12-31 33,405.00 19,693.00 10,661.00
2017-09-30 31,813.50 18,696.00 10,540.50
2017-06-30 30,222.00 17,699.00 10,420.00
2017-03-31 28,637.50 16,782.50 10,283.50
2016-12-31 27,053.00 15,866.00 10,147.00
2016-09-30 26,230.50 15,503.50 10,184.00
2016-06-30 25,408.00 15,141.00 10,221.00
2016-03-31 31,410.50 21,162.50 10,296.50
2015-12-31 37,413.00 27,184.00 10,372.00
2015-09-30 37,504.50 26,947.50 10,184.50
2015-06-30 37,596.00 26,711.00 9,997.00
2015-03-31 31,717.50 20,921.00 9,749.50
2014-12-31 25,839.00 15,131.00 9,502.00
2014-09-30 26,273.00 15,904.50 9,394.50
2014-06-30 26,707.00 16,678.00 9,287.00
2014-03-31 30,687.00 21,678.00 9,138.50
2013-12-31 34,667.00 26,678.00 8,990.00
2013-09-30 33,992.00 27,610.00 8,798.00
2013-06-30 33,317.00 28,542.00 8,606.00
2013-03-31 28,423.50 23,934.50 8,499.50
2012-12-31 23,530.00 19,327.00 8,393.00
2012-09-30 23,062.00 18,652.50 8,208.50
2012-06-30 22,594.00 17,978.00 8,024.00
2012-03-31 22,078.00 17,431.50 7,901.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hang Seng Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hang Seng Bank used its assets more efficiently than the DE Banks industry average last year based on Return on Assets.
  • Unable to establish if Hang Seng Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Hang Seng Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hang Seng Bank has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hang Seng Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Hang Seng Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hang Seng Bank Company Filings, last reported 2 months ago.

DB:HSB Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 162,107.00 11,084.00 143,541.00
2018-09-30 162,107.00 11,084.00 143,541.00
2018-06-30 155,674.00 22,090.00 183,351.00
2018-03-31 155,674.00 22,090.00 183,351.00
2017-12-31 152,079.00 13,558.00 178,373.00
2017-09-30 152,079.00 13,558.00 178,373.00
2017-06-30 144,897.00 18,904.00 166,098.00
2017-03-31 144,897.00 18,904.00 166,098.00
2016-12-31 140,686.00 18,551.00 176,583.00
2016-09-30 140,686.00 18,551.00 176,583.00
2016-06-30 136,713.00 16,845.00 178,793.00
2016-03-31 136,713.00 16,845.00 178,793.00
2015-12-31 141,981.00 15,819.00 189,953.00
2015-09-30 141,981.00 15,819.00 189,953.00
2015-06-30 139,474.00 15,969.00 228,527.00
2015-03-31 139,474.00 15,969.00 228,527.00
2014-12-31 139,193.00 13,525.00 204,576.00
2014-09-30 139,193.00 13,525.00 204,576.00
2014-06-30 109,501.00 20,726.00 183,729.00
2014-03-31 109,501.00 20,726.00 183,729.00
2013-12-31 107,778.00 17,070.00 192,976.00
2013-09-30 107,778.00 17,070.00 192,976.00
2013-06-30 102,081.00 16,646.00 187,474.00
2013-03-31 102,081.00 16,646.00 187,474.00
2012-12-31 92,323.00 15,939.00 198,455.00
2012-09-30 92,323.00 15,939.00 198,455.00
2012-06-30 84,245.00 16,586.00 269,717.00
2012-03-31 84,245.00 16,586.00 269,717.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Hang Seng Bank has an acceptable proportion of non-loan assets held.
  • Hang Seng Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Hang Seng Bank are broadly funded by customer deposits.
  • Hang Seng Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Hang Seng Bank has a sufficient allowance for bad loans.
  • Hang Seng Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Hang Seng Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hang Seng Bank has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hang Seng Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.94%
Current annual income from Hang Seng Bank dividends. Estimated to be 3.97% next year.
If you bought €2,000 of Hang Seng Bank shares you are expected to receive €79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hang Seng Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.49%).
  • Hang Seng Bank's dividend is above the markets top 25% of dividend payers in Germany (3.83%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HSB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Germany Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HSB Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.00 1.00
2021-12-31 7.40 7.00
2020-12-31 8.49 11.00
2019-12-31 8.09 11.00
DB:HSB Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-15 7.500 3.923
2019-02-19 7.500 3.934
2018-03-20 6.700 3.486
2017-02-21 6.100 3.490
2016-02-22 5.700 4.071
2015-10-05 5.600 4.054
2015-02-23 5.600 3.791
2014-02-24 5.500 4.275
2013-03-05 5.300 4.284
2012-02-27 5.200 4.659
2011-05-03 4.400 4.167
2011-02-28 5.200 4.200
2010-05-04 4.400 3.820
2010-03-02 5.200 4.778
2009-11-02 4.400 3.891
2009-05-05 4.400 3.997
2009-03-23 6.300 7.492

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hang Seng Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Hang Seng Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hang Seng Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hang Seng Bank has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hang Seng Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Louisa Cheang
COMPENSATION HK$12,031,774
AGE 54
TENURE AS CEO 1.7 years
CEO Bio

Ms. Wai Wan Cheang, also known as Louisa, is a Independent Non-Executive Director at Treasury Wine Estates Limited since December 1, 2018. She serves as the Chairman of various subsidiaries in Hang Seng Group. She serves as an International Advisor at China Union Pay. She serves as Member of Board of Trustees at Ho Leung Ho Lee Foundation. She served as Non-Independent Executive Director at HSBC Amanah Malaysia Berhad since January 2017. She serves as a Director of Hongkong and Shanghai Banking Corporation Ltd. since September 14, 2017. She serves as Group General Manager at HSBC Holdings plc. She serves as Board Member at The Community Chest of Hong Kong. She serves as Director at The Hongkong and Shanghai Banking Corporation Limited. She serves as a Vice President at The Hong Kong Institute of Bankers. She served as the Group Head of Retail Banking at HSBC from 2014 to 2017. She served as Alternate Chief Executive at The Hongkong and Shanghai Banking Corporation Limited from 2009 to 2014. She served as the Regional Head of Retail Banking and Wealth Management - Asia Pacific at The Hongkong and Shanghai Banking Corporation Limited from 2010 to 2014. She served as the Regional Director of Personal Financial Services of Asia Pacific at The Hongkong and Shanghai Banking Corporation Limited from 2009 to 2010. She served as the Head of Personal Financial Services - Hong Kong at The Hongkong and Shanghai Banking Corporation Limited from 2007 to 2009. She served as the Head of Marketing, Asia Pacific at The Hongkong and Shanghai Banking Corporation Limited from 2004 to 2007. She served as the Head of Marketing - Hong Kong at The Hongkong and Shanghai Banking Corporation Limited from 2004 to 2007 from 2002 to 2003. She served as Senior Manager Product and Marketing at The Hongkong and Shanghai Banking Corporation Limited from 2000 to 2001. She serves as Chairman of the Board of Governors at Hang Seng Management College. She serves as Chairman of the Board of Directors at Hang Seng School of Commerce. She served as Senior Manager Credit Card Product Development at The Hongkong and Shanghai Banking Corporation Limited from 1999 to 2000. She studied Bachelor of Social Science from The University of Hong Kong. She is an Honorary Certified Financial Management Planner – The Hong Kong Institute of Bankers.

CEO Compensation
  • Louisa's compensation has been consistent with company performance over the past year.
  • Louisa's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Hang Seng Bank management team in years:

2.9
Average Tenure
55
Average Age
  • The tenure for the Hang Seng Bank management team is about average.
Management Team

Louisa Cheang

TITLE
Vice-Chairman & Chief Executive
COMPENSATION
HK$12M
AGE
54
TENURE
1.7 yrs

Margaret Kwan

TITLE
Head of Retail Banking & Wealth Management and Executive Director
COMPENSATION
HK$4M
AGE
59
TENURE
2.7 yrs

Andrew Leung

TITLE
Chief Financial Officer
AGE
55

Eunice Chan

TITLE
Chief Operating Officer
AGE
55
TENURE
3 yrs

Michael, Godwin Li

TITLE
Company Secretary & General Counsel
AGE
50
TENURE
1.2 yrs

Walter Cheung

TITLE
Head of Communications & Corporate Sustainability
AGE
60
TENURE
3.4 yrs

Elaine Wang

TITLE
Head of Human Resources
AGE
56
TENURE
2.8 yrs

Donald Lam

TITLE
Head of Commercial Banking
AGE
54

Ivy Chan

TITLE
Chief Risk Officer
AGE
52
TENURE
4.7 yrs

Katie Yip

TITLE
Head of Regulatory Compliance
AGE
56
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Hang Seng Bank board of directors in years:

8.7
Average Tenure
65
Average Age
  • The tenure for the Hang Seng Bank board of directors is about average.
Board of Directors

Raymond Ch'ien

TITLE
Independent Non-Executive Chairman
COMPENSATION
HK$800K
AGE
66
TENURE
12.2 yrs

Louisa Cheang

TITLE
Vice-Chairman & Chief Executive
COMPENSATION
HK$12M
AGE
54
TENURE
1.7 yrs

Margaret Kwan

TITLE
Head of Retail Banking & Wealth Management and Executive Director
COMPENSATION
HK$4M
AGE
59
TENURE
1.8 yrs

Ryan Song

TITLE
Vice-Chairman & CEO of Hang Seng Bank (China) Limited
AGE
44
TENURE
1.2 yrs

Eric Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$920K
AGE
65
TENURE
19.1 yrs

John Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$650K
AGE
74
TENURE
23.6 yrs

Irene Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$920K
AGE
64
TENURE
4.8 yrs

Vincent Lo

TITLE
Non-Executive Director
COMPENSATION
HK$500K
AGE
70
TENURE
20.1 yrs

Peter Wong

TITLE
Non-Executive Director
COMPENSATION
HK$560K
AGE
67
TENURE
13.8 yrs

Nixon Chan

TITLE
Non-Executive Director
COMPENSATION
HK$500K
AGE
65
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Hang Seng Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hang Seng Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

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: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and 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, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management 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. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest 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.

Details
Name: Hang Seng Bank Limited
HSB
Exchange: DB
Founded: 1933
HK$40,839,377,030
1,911,842,736
Website: http://www.hangseng.com
Address: Hang Seng Bank Limited
83 Des Voeux Road,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 11 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK HSNG.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB HSB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 11 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 11 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK HSNG.Y SPONSORED ADR Pink Sheets LLC US USD 28. Oct 1992
Number of employees
Current staff
Staff numbers
10,352
Hang Seng Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 20:34
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/03/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.