OTCPK:HSNG.F

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Hang Seng Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-13.6%

OTCPK:HSNG.F

-1.8%

US Banks

0.2%

US Market


1 Year Return

-19.5%

OTCPK:HSNG.F

-15.3%

US Banks

-0.7%

US Market

HSNG.F underperformed the Banks industry which returned -13.6% over the past year.

HSNG.F underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

HSNG.FIndustryMarket
7 Day-13.6%-1.8%0.2%
30 Day-13.6%-6.4%-2.7%
90 Day-15.3%-4.0%1.6%
1 Year-19.5%-19.5%-12.9%-15.3%1.6%-0.7%
3 Year22.1%22.1%41.3%31.7%40.0%30.9%
5 Year29.1%29.1%50.8%34.5%53.8%36.8%

Price Volatility Vs. Market

How volatile is Hang Seng Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

13.36x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hang Seng Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hang Seng Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hang Seng Bank is overvalued based on earnings compared to the US Banks industry average.

Hang Seng Bank is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hang Seng Bank is poor value based on expected growth next year.


Price Based on Value of Assets

Hang Seng Bank is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hang Seng Bank's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

Hang Seng Bank's earnings are expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).

Hang Seng Bank's revenue growth is positive but not above the United States of America market average.

Hang Seng Bank's earnings growth is positive but not above the United States of America market average.

Hang Seng Bank's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Hang Seng Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

3.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hang Seng Bank's year on year earnings growth rate has been positive over the past 5 years.

Hang Seng Bank's 1-year earnings growth exceeds its 5-year average (9.2% vs 3.9%)

Hang Seng Bank's earnings growth has not exceeded the US Banks industry average in the past year (9.2% vs 33.2%).


Return on Equity

Hang Seng Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hang Seng Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


Next Steps

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

Information is not available.

Information is not available.


Financial Institutions Analysis

Hang Seng Bank has an acceptable proportion of non-loan assets held.

Hang Seng Bank has a sufficient allowance for bad loans.

Hang Seng Bank's liabilities are made up of primarily low risk sources of funding.

Hang Seng Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Hang Seng Bank are broadly funded by customer deposits.

Hang Seng Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

5.01%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hang Seng Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Hang Seng Bank's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

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

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Louisa Cheang (55yo)

2.1yrs

Tenure

HK$12,031,774

Compensation

Ms. Wai Wan Cheang, also known as Louisa, serves as Independent Non-Executive Director at Treasury Wine Estates Limited since December 1, 2018. She serves as the Chairman of various subsidiaries in Hang Se ...


CEO Compensation Analysis

Louisa's remuneration is lower than average for companies of similar size in United States of America.

Louisa's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

56yo

Average Age

The tenure for the Hang Seng Bank management team is about average.


Board Age and Tenure

9.1yrs

Average Tenure

66yo

Average Age

The tenure for the Hang Seng Bank board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Michael, Godwin Li (51yo)

    Company Secretary & General Counsel

    • Tenure: 1.6yrs
  • Donald Lam (55yo)

    Head of Commercial Banking

    • Tenure: 0.0yrs
  • Louisa Cheang (55yo)

    Vice-Chairman & Chief Executive

    • Tenure: 2.1yrs
    • Compensation: HK$12.03m
  • Andrew Leung (56yo)

    Chief Financial Officer

    • Tenure: 0.0yrs
  • Ivy Chan (53yo)

    Chief Risk Officer

    • Tenure: 5.1yrs
  • Katie Yip (57yo)

    Head of Regulatory Compliance

    • Tenure: 3.8yrs
  • Eunice Chan (56yo)

    Chief Operating Officer

    • Tenure: 3.4yrs
  • May Kay Wong (56yo)

    Head of Communications & Corporate Sustainability

    • Tenure: 0.6yrs
  • Margaret Kwan (60yo)

    Head of Retail Banking & Wealth Management and Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$3.93m
  • Elaine Wang (57yo)

    Head of Human Resources

    • Tenure: 3.2yrs

Board Members

  • Raymond Ch'ien (67yo)

    Independent Non-Executive Chairman

    • Tenure: 12.6yrs
    • Compensation: HK$800.00k
  • Irene Lee (65yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: HK$920.00k
  • John Chan (75yo)

    Independent Non-Executive Director

    • Tenure: 24.0yrs
    • Compensation: HK$650.00k
  • Vincent Lo (71yo)

    Non-Executive Director

    • Tenure: 20.5yrs
    • Compensation: HK$500.00k
  • Eric Li (66yo)

    Independent Non-Executive Director

    • Tenure: 19.5yrs
    • Compensation: HK$920.00k
  • Peter Wong (68yo)

    Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: HK$560.00k
  • Louisa Cheang (55yo)

    Vice-Chairman & Chief Executive

    • Tenure: 2.1yrs
    • Compensation: HK$12.03m
  • Nixon Chan (66yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$500.00k
  • Margaret Kwan (60yo)

    Head of Retail Banking & Wealth Management and Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$3.93m
  • Ryan Song (45yo)

    Vice-Chairman & CEO of Hang Seng Bank (China) Limited

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: Hang Seng Bank Limited
  • Ticker: HSNG.F
  • Exchange: OTCPK
  • Founded: 1933
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$328.072b
  • Listing Market Cap: HK$41.829b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSNG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HSBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
11SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
11SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
11SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
HSNG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 1992

Biography

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 cu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:01
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.