Stock Analysis

Hang Seng Bank Full Year 2022 Earnings: EPS Misses Expectations

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Hang Seng Bank (HKG:11) Full Year 2022 Results

Key Financial Results

  • Revenue: HK$28.1b (down 8.1% from FY 2021).
  • Net income: HK$9.46b (down 29% from FY 2021).
  • Profit margin: 34% (down from 43% in FY 2021). The decrease in margin was primarily driven by lower revenue.
  • EPS: HK$4.95 (down from HK$6.93 in FY 2021).

11 Banking Performance Indicators

  • Non-performing loans: 2.56% (up from 1.04% in FY 2021).
SEHK:11 Earnings and Revenue Growth March 14th 2023

All figures shown in the chart above are for the trailing 12 month (TTM) period

Hang Seng Bank EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 19%.

Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Banks industry in Hong Kong.

Performance of the Hong Kong Banks industry.

The company's shares are down 6.5% from a week ago.

Risk Analysis

It is worth noting though that we have found 1 warning sign for Hang Seng Bank that you need to take into consideration.

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