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11

Hang Seng BankSEHK:11 Stock Report

Market Cap

HK$278.9b

7D

0.5%

1Y

18.4%

Updated

26 Oct, 2021

Data

Company Financials +
11 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance1/6
Financial Health5/6
Dividends4/6

11 Overview

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.

Hang Seng Bank Competitors

Bank of Communications

SEHK:3328

HK$382.8b

Public Bank Berhad

KLSE:PBBANK

RM82.3b

Price History & Performance

Summary of all time highs, changes and price drops for Hang Seng Bank
Historical stock prices
Current Share PriceHK$146.60
52 Week HighHK$118.70
52 Week LowHK$166.70
Beta0.70
1 Month Change10.98%
3 Month Change-3.30%
1 Year Change18.42%
3 Year Change-19.50%
5 Year Change3.60%
Change since IPO405.91%

Recent News & Updates

Shareholder Returns

11HK BanksHK Market
7D0.5%-0.3%0.4%
1Y18.4%1.9%6.7%

Return vs Industry: 11 exceeded the Hong Kong Banks industry which returned 1.9% over the past year.

Return vs Market: 11 exceeded the Hong Kong Market which returned 6.7% over the past year.

Price Volatility

Is 11's price volatile compared to industry and market?
11 volatility
11 Beta0.70
Industry Beta0.61
Market Beta1

Stable Share Price: 11 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 11's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19339,704Diana Ferreira Cesarhttps://www.hangseng.com

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 and wealth management services, as well as consumer lending services.

Hang Seng Bank Fundamentals Summary

How do Hang Seng Bank's earnings and revenue compare to its market cap?
11 fundamental statistics
Market CapHK$278.94b
Earnings (TTM)HK$15.61b
Revenue (TTM)HK$32.78b

18.0x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
11 income statement (TTM)
RevenueHK$32.78b
Cost of RevenueHK$0
Gross ProfitHK$32.78b
ExpensesHK$17.17b
EarningsHK$15.61b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.16
Gross Margin100.00%
Net Profit Margin47.62%
Debt/Equity Ratio31.7%

How did 11 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

71%

Payout Ratio

Valuation

Is Hang Seng Bank undervalued compared to its fair value and its price relative to the market?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 11 (HK$146.6) is trading below our estimate of fair value (HK$153.51)

Significantly Below Fair Value: 11 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 11 is poor value based on its PE Ratio (18x) compared to the Hong Kong Banks industry average (5.6x).

PE vs Market: 11 is poor value based on its PE Ratio (18x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 11 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 11 is overvalued based on its PB Ratio (1.5x) compared to the HK Banks industry average (0.4x).


Future Growth

How is Hang Seng Bank forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 11's forecast earnings growth (10.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 11's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

High Growth Earnings: 11's earnings are forecast to grow, but not significantly.

Revenue vs Market: 11's revenue (8.4% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 11's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 11's Return on Equity is forecast to be low in 3 years time (12.8%).


Past Performance

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

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 11 has a high level of non-cash earnings.

Growing Profit Margin: 11's current net profit margins (47.6%) are lower than last year (59.9%).


Past Earnings Growth Analysis

Earnings Trend: 11's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: 11's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 11 had negative earnings growth (-21.7%) over the past year, making it difficult to compare to the Banks industry average (6.4%).


Return on Equity

High ROE: 11's Return on Equity (8.9%) is considered low.


Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 11's Assets to Equity ratio (9.8x) is low.

Allowance for Bad Loans: 11 has a low allowance for bad loans (73%).

Low Risk Liabilities: 82% of 11's liabilities are made up of primarily low risk sources of funding.

Loan Level: 11 has an appropriate level of Loans to Assets ratio (56%).

Low Risk Deposits: 11's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: 11 has an appropriate level of bad loans (0.7%).


Dividend

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

3.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 11's dividend (3.75%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 11's dividend (3.75%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


Stability and Growth of Payments

Stable Dividend: 11's dividend payments have been volatile in the past 10 years.

Growing Dividend: 11's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71%), 11's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 11's dividends in 3 years are forecast to be covered by earnings (63.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Diana Ferreira Cesar (52 yo)

0.083

Tenure

Ms. Diana Ferreira Cesar serves as Chief Executive Officer of Hong Kong at The Hongkong and Shanghai Banking Corporation Limited. Ms. Cesar has been the Chief Executive Officer of Hong Kong at HSBC Holding...


Leadership Team

Experienced Management: 11's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: 11's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hang Seng Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hang Seng Bank Limited
  • Ticker: 11
  • Exchange: SEHK
  • Founded: 1933
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$278.938b
  • Shares outstanding: 1.91b
  • Website: https://www.hangseng.com

Number of Employees


Location

  • Hang Seng Bank Limited
  • 83 Des Voeux Road
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 10:03
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.