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Analysts optimistic over Hang Seng Bank interim

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ANALYSTS expect Hang Seng Bank to report an increase in interim results of between 22 per cent and 40 per cent tomorrow.

The wide range of forecasts is attributed to differences of opinion on how proceeds from the sale of Wing On Bank will be treated.

Some analysts believe the proceeds should be entered as an extraordinary item, others that they should appear above the line in the profit and loss account.

Apart from the Wing On gain, the bullishness rest on the assumption that last year's big provisions against loans to Canadian property developer Olympia and York (O & Y) will not be repeated.

''Hang Seng is a fairly conservative bank. Over O & Y, the bank might have written off as much as possible last year,'' Jardine Fleming investment analyst Steven Li said.

Hang Seng's exposure to O & Y was US$100 million, but the bank refused to disclose the level of provisions made last year.

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