Update | Hang Seng Bank first-half net profit surges 137 per cent to HK$20 billion

Hang Seng Bank on Monday reported net profit for the first half this year rose 137 per cent to HK$20.05 billion mainly due to one-off gains from the disposal of its investment in mainland lender Industrial Bank.

Excluding the one-off gain, net profit was up 11 per cent to HK$9.41 billion. Hang Seng is a subsidiary of HSBC.

Brokers had estimated the banks’ net profit would range from HK$17.57 billion to HK$19.87 billion, and sharply up compared to a net profit of HK$8.47 billion during the same period a year earlier.

“Our forward-looking capital planning will enable us to continue to invest in our core business for long-term growth and to respond to new business opportunities promptly in the year ahead,” said vice-chairman and chief executive Rose Lee Wai-mun.

At the end of June, the bank’s total capital ratio was 21.8 per cent, up from 15.7 per cent at the end of last year.

The strong growth was mainly due to one-off gains of HK$10.64 billion from its sale of its 11 per cent stake in Shanghai-listed Industrial Bank in two transactions in May and February to cash in a total of 29.54 billion yuan on what was originally a 1.7 billion yuan investment in 2004. Hang Seng still holds a 0.88 per cent stake in the mainland lender.