Analysts are optimistic about Hang Seng Bank's strong loan growth, but say capital levels and loan quality are two areas to watch when it delivers first-half results on Monday.
Hang Seng Bank, HSBC, Standard Chartered Bank and Bank of East Asia are all scheduled to deliver interim reports next week.
Loan growth across the banking sector has been strong, but net interest margins, a measure of lending profitability, remain soft. Rising costs could also bite into earnings, analysts said.
The average market forecast for Hang Seng Bank's pre-tax profits stands at HK$9.33 billion, with the lowest estimate at HK$9.04 billion and the highest at HK$9.59 billion.
Hang Seng posted HK$8.1 billion in profit before tax in the first half of last year.
A subsidiary of HSBC Holdings, Hang Seng is one of the city's largest retail lenders and has focused on increasing its net interest margin by building up its loan book. However, its capital adequacy ratio could have been affected.