By Sherry Qin
Hang Seng Bank reported mixed results for 2024, with net profit increasing despite lower net interest income, and said its chairwoman will retire this year.
The Hong Kong-based lender said Wednesday that its annual net interest income dropped 5% to 30.78 billion Hong Kong dollars, equivalent to US$3.96 billion. The bank attributed the decline to subdued loan demand and the downward trend of interest rates since the third quarter.
Its net interest margin fell to 2.2% from 2.3% as loan spreads narrowed on weaker loan demand.
However, full-year net profit rose to HK$18.38 billion from HK$17.84 billion in 2023, supported by higher noninterest income.
Chief Executive Diana Cesar said 2024 was "a difficult year with continued geopolitical and macro challenges." Yet the bank focused on diversifying its revenue streams and continued to derisk its portfolio and cutting exposure to Chinese real estate, she said.
Shares of Hang Seng Bank fell in afternoon trading after the results, ending 3.9% lower at HK$100.50.
In a statement after the market closed, Hang Seng Bank said its chairwoman, Irene Lee, will retire after being on the board for around 11 years.
Edward Cheng, currently deputy chairman and CEO of Wing Tai Properties, has been appointed as an independent nonexecutive director of the bank, effective April 1. He will succeed Lee and be redesignated as the bank's chairman in May.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
February 19, 2025 05:11 ET (10:11 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.