Dear Shareholder, Hang Seng Bank Limited (the "Bank") – Arrangement for Dissemination of Corporate Communications1 Stock codes: 11 (HKD counter) and 80011 (RMB counter) : 11 80011 LETTER TO NEW REGISTERED SHAREHOLDERS Printed or electronic form of Corporate Communications is available, free of charge, upon your request in writing to the Share Registrar in the aforesaid manner. Should you have any queries relating to any of the above matters, please call the Bank's hotline at (852) 2198 7887 from 9:00 a.m. t ...

Stock codes: 11 (HKD counter) and 80011 (RMB counter) : 11 80011 NOTIFICATION LETTER Dear Non-registered Shareholder1 , Hang Seng Bank Limited (the "Bank") 27 August 2025 – Notice of Publication of Interim Report 2025 and New Arrangement for Dissemination of Corporate Communications2 The English and Chinese versions of the Interim Report 2025 are available on the Bank's website at www.hangseng.com and the website of Hong Kong Exchanges and Clearing Limited ("HKEX") at www.hkexnews.hk (collectively, the "Web ...

Stock codes: 11 (HKD counter) and 80011 (RMB counter) : 11 80011 Hang Seng Bank Limited (the "Bank") – Notice of Publication of Interim Report 2025 and New Arrangement for Dissemination of Corporate Communications1 The English and Chinese versions of the Interim Report 2025 are available on the Bank's website at www.hangseng.com and the website of to receive Corporate Communications in printed form, printed form of the Interim Report 2025 in your selected language(s) is/are enclosed. In accordance with the ...

[Performance Highlights](index=4&type=section&id=Performance%20Highlights) This section provides an overview of the bank's financial performance and strategic focus for the period [Chairman's Report](index=4&type=section&id=Chairman's%20Report) The Chairman's Report highlights Hang Seng Bank's strategic focus and resilience amidst challenging macroeconomic conditions, driving Hong Kong's economic development - New Chairman, **Patrick Cheng**, will focus on Hang Seng Bank's strategic priorities to drive Hong Kong's economic development and uphold its traditions[8](index=8&type=chunk) - The macroeconomic environment remains challenging and uncertain, but markets show encouraging recovery signs amidst geopolitical tensions and complex trade conditions[8](index=8&type=chunk) - Hang Seng Bank maintains **strong capital**, demonstrating business flexibility and resilience by actively diversifying income sources[8](index=8&type=chunk) - The bank actively supports community development, particularly in enhancing youth financial literacy and improving cross-border services for Greater Bay Area customers[8](index=8&type=chunk) [Chief Executive's Report](index=5&type=section&id=Chief%20Executive's%20Report) The Chief Executive's Report details H1 2025 performance, noting a 28% decline in pre-tax profit due to increased provisions, despite strong wealth management and diversified income growth - Market uncertainties persisted in H1 2025, with trade tariffs, high interest rates, and commercial real estate pressures impacting the economy[10](index=10&type=chunk) Key Financial Performance in H1 2025 | Metric | H1 2025 (HKD million) | H1 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Expected Credit Loss Provisions | 4,900 | - | - | | Profit Before Tax | 8,100 | 11,307 | -28 | | Impaired Loan Ratio | 6.69% | - | - | | Common Equity Tier 1 Capital Ratio | 21.3% | - | - | | Net Operating Income Before Expected Credit Losses Growth | - | - | +3 | | Net Interest Income Decrease | - | - | -7 | | Fee and Other Income Growth | - | - | +34 | | Wealth Income Growth | - | - | +43 | | Insurance Products and Asset Management Income Growth | - | - | +18 | | New Life Insurance Premiums Growth (Q1) | - | - | +57 | | Dividend Per Share | 2.60 (HKD) | 2.40 (HKD) | +8 | | Share Buyback Program | 3,000 (HKD million) | - | - | - The bank optimized its organizational structure to enhance operational efficiency and made significant progress in income diversification and expanding its target customer base[14](index=14&type=chunk)[15](index=15&type=chunk) - Retail Banking and Wealth Management are key growth drivers, with affluent customer growth of **10% annually over three years** and cross-border mainland Premier Banking customer numbers growing **20% year-on-year**[15](index=15&type=chunk)[16](index=16&type=chunk) - In Commercial Banking, loans to the IT sector grew **37%**, trade finance loan balances grew **16%**, and an **HKD 80 billion** Sustainable Power Up Financing Fund was launched[16](index=16&type=chunk) - Hang Seng Investment launched Hong Kong's first monthly dividend stock index ETF, while Hang Seng Indexes Company introduced new Greater Bay Area and ASEAN indexes and strengthened financial ties with the Middle East[20](index=20&type=chunk) - The bank remains optimistic about Hong Kong's long-term growth prospects, with initial signs of recovery in capital markets and residential real estate[24](index=24&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) The Financial Review details H1 2025 performance, showing significant growth in wealth management and securities brokerage offsetting a decline in net interest income, but increased credit impairment charges pressured overall profit - In H1 2025, the Group made significant progress in diversifying income sources, with higher growth in wealth management and securities brokerage-related services income[27](index=27&type=chunk) Financial Performance Summary H1 2025 | Metric | June 30, 2025 (HKD million) | June 30, 2024 (HKD million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 14,339 | 15,483 | -7 | | Net Interest Margin | 1.67% | 1.83% | -16 bps | | Net Interest Yield | 1.99% | 2.29% | -30 bps | | Net Fee and Commission Income | 3,147 | 2,564 | +23 | | Net Income from Financial Instruments at Fair Value Through Profit or Loss | 10,716 | 2,822 | +280 | | Wealth Management Income | 4,115 | 3,354 | +23 | | Changes in Expected Credit Losses and Other Credit Impairment Charges | 4,861 | 1,500 | +224 | | Operating Expenses | 7,565 | 7,523 | +1 | | Cost-Efficiency Ratio | 36.1% | 36.8% | -0.7 pp | | Total Impaired Loans to Total Customer Loans Ratio | 6.69% | 5.32% | +1.37 pp | - Changes in expected credit losses and other credit impairment charges increased by **HKD 3.361 billion** to **HKD 4.861 billion** in H1 2025, with **HKD 2.540 billion** from Hong Kong commercial real estate[34](index=34&type=chunk) - Total impaired loans increased from **HKD 51.0 billion** as of December 31, 2024, to **HKD 55.0 billion** as of June 30, 2025, primarily reflecting rating downgrades of certain impaired corporate loans[34](index=34&type=chunk) [Revenue Analysis](index=7&type=section&id=Revenue%20Analysis) Revenue analysis shows a 7% decrease in net interest income due to reduced loans and lower rates, but a 23% increase in net fee income driven by securities brokerage and a 280% surge in fair value financial instrument income - Net interest income decreased by **HKD 1.144 billion (7%)** to **HKD 14.339 billion**, primarily due to a **3% reduction** in average gross customer loans and lower market interest rates[28](index=28&type=chunk) - Net fee and commission income increased by **HKD 583 million (23%)** to **HKD 3.147 billion**, mainly driven by a **60% growth** in securities brokerage-related services income[29](index=29&type=chunk) - Net income from financial instruments at fair value through profit or loss increased by **HKD 7.894 billion (280%)** to **HKD 10.716 billion**, benefiting from funding swap gains, increased customer trading activity, and reduced interest expenses on structured products[29](index=29&type=chunk) - Wealth management income increased by **HKD 761 million (23%)** to **HKD 4.115 billion**, with investment services income showing **strong growth of 41%**[32](index=32&type=chunk) [Financial Performance Summary](index=8&type=section&id=Financial%20Performance%20Summary) This summary compares H1 2025 performance to H1 and H2 2024, noting a significant increase in credit impairment provisions and a decline in operating and shareholder profit, despite growth in net fee and trading income - Changes in expected credit losses and other credit impairment charges increased by **HKD 3.361 billion** to **HKD 4.861 billion** in H1 2025, with **HKD 2.540 billion** from Hong Kong commercial real estate[34](index=34&type=chunk) - The total impaired loans to total customer loans ratio increased from **6.12%** as of December 31, 2024, to **6.69%** as of June 30, 2025[34](index=34&type=chunk) - Operating expenses grew moderately by **HKD 42 million (1%)** to **HKD 7.565 billion**, with the cost-efficiency ratio slightly decreasing by **0.7 percentage points** to **36.1%**[34](index=34&type=chunk)[37](index=37&type=chunk) - Compared to H2 2024, net operating income before changes in expected credit losses decreased by **1%**, operating profit decreased by **16%**, and profit attributable to shareholders decreased by **19%**[38](index=38&type=chunk) - Net interest income decreased by **6%**, net fee and commission income increased by **14%**, and net trading income and others collectively increased by **252%**[38](index=38&type=chunk) - Total changes in expected credit losses increased by **HKD 1.588 billion** to **HKD 4.861 billion**, primarily due to increased provisions for Hong Kong commercial real estate risks[39](index=39&type=chunk) [Segmental Analysis](index=10&type=section&id=Segmental%20Analysis) Segmental analysis reveals Hong Kong operations' total income grew 0.4% driven by fees, retail banking and wealth management income rose 6%, while commercial banking income decreased 8% despite trade finance growth Profit Before Tax Contribution by Segment H1 2025 | Business Segment | June 30, 2025 (HKD million) | Share (%) | June 30, 2024 (HKD million) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Business | 6,435 | 79.5 | 9,738 | 86.1 | | Insurance Products and Asset Management Business | 1,479 | 18.2 | 1,335 | 11.8 | | Capital Markets and Securities Services Business | 604 | 7.5 | 529 | 4.7 | | Corporate Centre | (421) | (5.2) | (295) | (2.6) | | Total | 8,097 | 100.0 | 11,307 | 100.0 | - Total income from Hong Kong Business increased by **0.4% year-on-year** to **HKD 17.723 billion**, primarily driven by a **31% growth** in fee and other income[41](index=41&type=chunk) - Total income from Retail Banking and Wealth Management increased by **6% year-on-year** to **HKD 11.260 billion**, with wealth income surging **43% year-on-year** and non-HKD deposits rising **21% year-on-year**[42](index=42&type=chunk) - Total income from Commercial Banking decreased by **8% year-on-year** to **HKD 6.463 billion**, but trade finance loan balances grew **16%** since end-2024[47](index=47&type=chunk) - Total income from Insurance Products and Asset Management increased by **18% year-on-year** to **HKD 1.914 billion**, with Hang Seng Insurance's new life insurance premiums growing **57% year-on-year**, rising to second in market ranking[51](index=51&type=chunk) - Total income from Capital Markets and Securities Services increased by **10% year-on-year** to **HKD 901 million**, with profit before tax growing **14%** to **HKD 604 million**[53](index=53&type=chunk) [Balance Sheet Analysis](index=13&type=section&id=Balance%20Sheet%20Analysis) Balance sheet analysis shows total assets grew 1% to HKD 1,822 billion, customer loans decreased 2% to HKD 803 billion, while customer deposits increased 3% to HKD 1,300 billion, improving the loan-to-deposit ratio - Total assets increased by **HKD 26.0 billion (1%)** from end-2024 to **HKD 1,822.0 billion**[54](index=54&type=chunk) - Customer loans (net of expected credit loss allowances) decreased by **HKD 16.0 billion (2%)** to **HKD 803.0 billion**, primarily due to subdued corporate loan demand amidst economic uncertainty[54](index=54&type=chunk) - Loans to the information technology sector increased by **37%**, and trade finance loans increased by **16%**[54](index=54&type=chunk) - Customer deposits increased by **HKD 33.0 billion (3%)** from end-2024 to **HKD 1,300.0 billion**[55](index=55&type=chunk) Key Balance Sheet Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loan-to-Deposit Ratio | 61.8% | 64.7% | | Demand, Current and Savings Deposits to Total Customer Deposits Ratio | 56.2% | 49.5% | - Shareholders' equity increased by **HKD 1.0 billion (1%)** to **HKD 171.0 billion**, primarily driven by increases in cash flow hedging reserves and financial assets at fair value through other comprehensive income reserves[56](index=56&type=chunk) [Risks](index=14&type=section&id=Risks) This section outlines the bank's comprehensive approach to identifying, assessing, and managing various financial and operational risks, including credit, treasury, market, and regulatory compliance [Principal Risks and Uncertainties](index=14&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group continuously monitors and identifies key risks including credit, treasury, market, resilience, regulatory compliance, financial crime, model, and insurance business risks - The bank's principal risks include credit risk, treasury risk, market risk, resilience risk, regulatory compliance risk, financial crime risk, model risk, and insurance business risk[57](index=57&type=chunk) - The bank adopts a consistent risk management strategy aimed at safeguarding customer funds, lending responsibly, and supporting economic development[58](index=58&type=chunk) - The bank is committed to investing resources in the reliability and resilience of technology systems and critical services, and strengthening due diligence and monitoring measures for third-party financial soundness[59](index=59&type=chunk) [Risk Management](index=14&type=section&id=Risk%20Management) Risk management is a collective responsibility across the bank, with the Board holding ultimate accountability, overseen by an independent Risk and Compliance function balancing risk and reward - All employees bear risk management responsibility, with the Board holding ultimate accountability[60](index=60&type=chunk) - The Risk and Compliance function operates independently of business segments, with responsibilities including challenging, providing appropriate oversight, and assisting in balancing risk and reward for sound decision-making[60](index=60&type=chunk) - The bank employs a comprehensive risk management model based on culture and values to identify, assess, manage, and report risks incurred and generated during business operations[60](index=60&type=chunk) - Risk appetite is defined as the overall level of risk the Group is willing to undertake to achieve its strategic objectives, ensuring strategic growth within the desired risk boundaries[61](index=61&type=chunk) [Key Developments in H1 2025](index=15&type=section&id=Key%20Developments%20in%20H1%202025) In H1 2025, the bank continued to manage macroeconomic and geopolitical risks, focusing on trade tariffs, interest rate volatility, and commercial real estate, while enhancing third-party monitoring and integrating climate factors into risk management - The bank continued to manage macroeconomic and geopolitical-related risks, as well as commercial real estate sector and other principal risks[62](index=62&type=chunk) [Specific Mentions](index=15&type=section&id=Specific%20Mentions) This section highlights geopolitical and macroeconomic risks as primary concerns, including anticipated tariffs, interest rate volatility, ongoing conflicts, and challenges in Hong Kong and mainland China's commercial real estate markets - Anticipated tariffs are a major risk for H2 2025, potentially further hindering global growth, causing supply chain disruptions, and reducing global trade[64](index=64&type=chunk) - The bank faces interest rate risk, which may impact net interest income and the fair value of assets and liabilities, with increased volatility in the Hong Kong Interbank Offered Rate (HIBOR)[65](index=65&type=chunk) - The geopolitical environment remains complex, with Middle East and Russia-Ukraine issues, and US-China competition potentially exacerbating market volatility and supply chain disruptions[68](index=68&type=chunk) - Commercial real estate markets in Hong Kong and mainland China remain challenging, with oversupply of non-residential properties in Hong Kong exerting downward pressure on rents and capital values[68](index=68&type=chunk) - Management made adjustments to Expected Credit Loss (ECL) to reflect industry or portfolio risks not fully captured by models[68](index=68&type=chunk) [Mitigation Measures](index=16&type=section&id=Mitigation%20Measures) To mitigate risks, the bank continuously monitors geopolitical and economic developments, actively manages its credit portfolio through enhanced surveillance and stress testing, and maintains robust policies for sanctions and trade controls - The bank continues to monitor and seek to manage the potential impact of all developments on customers and business[69](index=69&type=chunk) - Actively manages the credit portfolio through enhanced monitoring, thematic reviews, and internal stress tests[69](index=69&type=chunk) - Continues to provide support to customers and appropriately manage risk and appetite levels[69](index=69&type=chunk) - Manages sanctions and trade controls through reasonably established policies, procedures, and monitoring measures, with ongoing enhancements[69](index=69&type=chunk) [(a) Credit Risk](index=17&type=section&id=(a)%20Credit%20Risk) Credit risk refers to financial losses from customer or counterparty failure to meet contractual obligations, with no significant policy changes in H1 2025, and detailed analysis of exposure, ECL coverage, and sensitivity, particularly for commercial real estate - Credit risk refers to the risk of financial loss arising from a customer or counterparty failing to meet contractual obligations, primarily from direct lending, trade finance, and leasing activities[70](index=70&type=chunk) - The bank's credit risk management policies and practices remained unchanged in H1 2025[71](index=71&type=chunk) Maximum Credit Risk Exposure Without Collateral or Other Credit Enhancements (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Balances with Central Banks | 9,720 | 10,433 | | Assets Held for Trading | 38,511 | 39,613 | | Derivative Financial Instruments | 14,578 | 20,201 | | Financial Assets Mandatorily at Fair Value Through Profit or Loss | 123,200 | 114,368 | | Reverse Repurchase Agreements - Non-trading | 56,283 | 33,479 | | Placements with and Loans to Banks | 85,228 | 76,221 | | Loans and Advances to Customers | 803,356 | 819,136 | | Financial Investments | 521,070 | 536,745 | | Other Assets | 35,179 | 28,815 | | Financial Guarantees and Other Credit-Related Contingent Liabilities | 20,114 | 22,848 | | Loan Commitments and Other Credit-Related Commitments | 494,523 | 495,092 | | **Total** | **2,201,762** | **2,196,951** | [Maximum Credit Risk Exposure Without Collateral or Other Credit Enhancements](index=17&type=section&id=Maximum%20Credit%20Risk%20Exposure%20Without%20Collateral%20or%20Other%20Credit%20Enhancements) The Group's maximum credit risk exposure, across various asset classes including derivatives, trading assets, customer loans, and financial investments, remained stable at HKD 2,201,762 million as of June 30, 2025 - The Group's credit risk is spread across various asset classes, including derivative instruments, assets held for trading, loans and advances to customers, and financial investments[73](index=73&type=chunk) Maximum Credit Risk Exposure Without Collateral or Other Credit Enhancements (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loans and Advances to Customers | 803,356 | 819,136 | | Financial Investments | 521,070 | 536,745 | | Loan Commitments and Other Credit-Related Commitments | 494,523 | 495,092 | | **Total** | **2,201,762** | **2,196,951** | [Credit Risk by Stage](index=18&type=section&id=Credit%20Risk%20by%20Stage) The Group outlines credit risk and ECL coverage by stage and industry, with total customer loans at HKD 819,709 million and ECL allowances of HKD 16,353 million, resulting in a 1.99% coverage ratio and an impaired loan ratio of 6.69% - Credit risk is distributed across Stage 1 (12-month expected credit losses), Stage 2 (lifetime expected credit losses, significant increase in credit risk), and Stage 3 (lifetime expected credit losses, objective evidence of impairment)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) Credit Risk Distribution of Customer Loans as of June 30, 2025 (HKD million) | Item | Gross Carrying/Nominal Amount | Expected Credit Loss Allowance | Expected Credit Loss Coverage Ratio (%) | | :--- | :--- | :--- | :--- | | **Loans and Advances to Customers at Amortised Cost** | **819,709** | **(16,353)** | **1.99** | | - Personal | 384,502 | (1,482) | 0.39 | | - Corporate and Commercial | 408,404 | (14,824) | 3.63 | | - Non-bank Financial Institutions | 26,803 | (47) | 0.18 | | **Total** | **1,448,989** | **(16,567)** | **1.14** | - Total impaired loans increased from **HKD 51.0 billion** as of December 31, 2024, to **HKD 55.0 billion** as of June 30, 2025, with a total impaired loans to total customer loans ratio of **6.69%**[34](index=34&type=chunk) [Measurement Uncertainty and Sensitivity Analysis of Expected Credit Loss Estimates](index=19&type=section&id=Measurement%20Uncertainty%20and%20Sensitivity%20Analysis%20of%20Expected%20Credit%20Loss%20Estimates) ECL measurement involves significant judgment and estimates, using four probability-weighted economic scenarios, with the central scenario forecasting slower GDP growth and continued weak property prices, and sensitivity analysis highlighting retail and wholesale loan portfolio vulnerability to macroeconomic variables - The recognition and measurement of ECL involve significant judgment and estimates, forming multiple economic scenarios and distribution estimates based on economic forecasts[83](index=83&type=chunk) - The bank uses four scenarios: upside (10%), central (65%), downside (20%), and severe downside (5%), to explore the latest economic forecasts[85](index=85&type=chunk)[86](index=86&type=chunk) - The central scenario anticipates slower GDP growth rates in major markets for 2025 and 2026, with Hong Kong's unemployment rate projected to remain stable at **3.5%** and property prices continuing to be weak[91](index=91&type=chunk)[92](index=92&type=chunk) Key Macroeconomic Variables in Central Scenario (Annual Growth Rate/Ratio) | Metric | Hong Kong (2025) | Mainland China (2025) | | :--- | :--- | :--- | | GDP Growth Rate | 1.8% | 4.3% | | Unemployment Rate | 3.2% | 5.2% | | Housing Price Growth | (5.3)% | (5.9)% | | Probability | 65% | 65% | - Management judgment adjustments and other adjustments are used to address risks or uncertainties not fully captured by models, with ECL model provisions for the wholesale loan portfolio increasing by **HKD 128 million** and for the retail loan portfolio by **HKD 26 million** as of June 30, 2025[112](index=112&type=chunk)[118](index=118&type=chunk)[121](index=121&type=chunk) Wholesale and Retail Loan ECL Sensitivity (HKD million) | Scenario | Hong Kong (Wholesale) | Mainland China (Wholesale) | Hong Kong (Retail) | Mainland China (Retail) | | :--- | :--- | :--- | :--- | :--- | | Reported Expected Credit Losses | 2,710 | 716 | 1,315 | 74 | | Central Scenario | 2,583 | 636 | 1,268 | 53 | | Upside Scenario | 2,101 | 479 | 1,243 | 51 | | Downside Scenario | 3,054 | 989 | 1,365 | 87 | | Severe Downside Scenario | 4,549 | 1,492 | 2,065 | 180 | [Credit Risk of Financial Instruments](index=33&type=section&id=Credit%20Risk%20of%20Financial%20Instruments) Financial instruments are categorized into five credit quality classes based on internal ratings and 12-month probability of default, with detailed distribution by credit quality and stage, highlighting ongoing challenges in mainland China and deteriorating conditions in Hong Kong commercial real estate - Financial instruments are classified into High, Good, Medium, Substandard, and Credit-Impaired credit quality categories, based on internal credit ratings and 12-month weighted probability of default[143](index=143&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) Distribution of Financial Instruments Subject to HKFRS 9 Impairment Requirements as of June 30, 2025 (HKD million) | Credit Quality Category | Gross Carrying/Nominal Amount | Expected Credit Loss Allowance | Net Amount | | :--- | :--- | :--- | :--- | | High Grade | 969,027 | (817) | 968,210 | | Good Grade | 193,581 | (3,829) | 189,752 | | Medium Grade | 207,496 | (11,842) | 195,654 | | Substandard Grade | 24,033 | (79) | 23,954 | | Credit-Impaired | 54,852 | (16,567) | 38,285 | | **Total** | **1,448,989** | **(16,567)** | **1,432,422** | Total Mainland China Commercial Real Estate Exposure (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Loans and Advances to Customers | 15,856 | 17,977 | | Expected Credit Losses | 4,041 | 3,905 | | Expected Credit Loss Coverage Ratio (%) | 25.5 | 21.7 | - Mainland China's commercial real estate portfolio continues to face challenges, with weak market fundamentals and persistent refinancing risks[156](index=156&type=chunk) Hong Kong Commercial Real Estate Customer Loans (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Customer Loans | 123,820 | 130,518 | | Expected Credit Losses | 4,194 | 1,654 | | Substandard and Credit-Impaired Exposure | 39,500 | 36,600 | - The Hong Kong commercial real estate portfolio further deteriorated in H1 2025, primarily due to the continued worsening of secured loans, leading to increased expected credit loss levels[160](index=160&type=chunk)[161](index=161&type=chunk) [(b) Treasury Risk](index=40&type=section&id=(b)%20Treasury%20Risk) Treasury risk encompasses capital, liquidity, and funding risks, with the bank maintaining a robust capital base (CET1 ratio of 21.3%), strong liquidity ratios exceeding regulatory requirements, and sensitivity analysis indicating significant impact of interest rate changes on net interest income - Treasury risk refers to the risk of insufficient capital, liquidity, or funding to meet financial obligations and regulatory requirements, as well as the risk of adverse impact on earnings or capital due to changes in market interest rates[163](index=163&type=chunk) - The bank plans to commence a share buyback of up to **HKD 3.0 billion**, expected to be completed within six months[164](index=164&type=chunk) [Capital Risk](index=40&type=section&id=Capital%20Risk) The bank's capital risk management approach remains consistent, with Common Equity Tier 1, Tier 1, and Total Capital Ratios significantly improving to 21.3%, 23.3%, and 24.9% respectively, calculated under Basel III reforms, and a 70% dividend payout ratio target for 2025 - The bank uses the Advanced Internal Ratings-Based Approach and Foundation Internal Ratings-Based Approach to calculate credit risk for most non-securitisation exposures[165](index=165&type=chunk) Capital Ratios (as a percentage of risk-weighted assets) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Common Equity Tier 1 Capital Ratio | 21.3% | 17.7% | | Tier 1 Capital Ratio | 23.3% | 19.4% | | Total Capital Ratio | 24.9% | 20.8% | - Regulatory capital ratios as of June 30, 2025, are calculated in accordance with the Basel III final reform package implemented in Hong Kong on January 1, 2025[171](index=171&type=chunk) - The bank's medium-to-long-term dividend target is to maintain stable dividends, with a target dividend payout ratio of **70%** set for 2025[173](index=173&type=chunk)[174](index=174&type=chunk) [Liquidity and Funding Risk](index=43&type=section&id=Liquidity%20and%20Funding%20Risk) The bank's liquidity and funding risk management remained unchanged in H1 2025, with the Liquidity Coverage Ratio at 311.0% and Net Stable Funding Ratio at 182.6%, both significantly exceeding regulatory requirements and demonstrating a robust funding position - The bank's approach to liquidity and funding risk management remained unchanged in H1 2025[176](index=176&type=chunk) Liquidity Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Liquidity Coverage Ratio | 311.0% | 301.0% | | Net Stable Funding Ratio | 182.6% | 181.0% | - The average Liquidity Coverage Ratio increased to **335.0%** for the quarter ended June 30, 2025, primarily reflecting an increase in surplus funds[179](index=179&type=chunk) - The Group's holdings of high-quality liquid assets are primarily composed of Level 1 liquid assets, with the majority being government debt securities[179](index=179&type=chunk) [Interest Rate Risk in the Banking Book](index=45&type=section&id=Interest%20Rate%20Risk%20in%20the%20Banking%20Book) Interest rate risk in the banking book refers to the adverse impact of market interest rate changes on earnings or capital, with sensitivity analysis showing a 100 basis point upward shift would increase net interest income by HKD 1.461 billion, while a downward shift would decrease it by HKD 2.597 billion over 12 months - Interest rate risk in the banking book refers to the risk of adverse impact on earnings or capital due to changes in market interest rates, arising from non-trading assets and liabilities[182](index=182&type=chunk) Net Interest Income Sensitivity (12 months, HKD million) | Currency | Parallel Upward Shift of 100 bps | Parallel Downward Shift of 100 bps | | :--- | :--- | :--- | | HKD | 664 | (1,331) | | USD | 70 | (305) | | Others | 727 | (961) | | **Total** | **1,461** | **(2,597)** | [(c) Market Risk](index=46&type=section&id=(c)%20Market%20Risk) Market risk refers to adverse financial impacts on trading activities from changes in market parameters like interest rates and exchange rates, which the bank prudently managed in H1 2025 with no significant policy changes, and a lower trading book VaR driven by interest rate activities - Market risk refers to the risk of adverse financial impact on trading activities due to changes in market parameters such as interest rates, exchange rates, asset prices, volatility, correlation, and credit spreads[184](index=184&type=chunk) - The bank's market risk management policies and practices remained unchanged in H1 2025, continuing to prudently manage market risk[186](index=186&type=chunk) - Trading book Value at Risk (VaR) as of June 30, 2025, was lower than that of June 30, 2024, primarily driven by interest rate trading activities[187](index=187&type=chunk) Trading Book Value at Risk (HKD million) | Metric | June 30, 2025 | H1 2025 Average Value | June 30, 2024 | H1 2024 Average Value | | :--- | :--- | :--- | :--- | :--- | | Total | 25 | 26 | 51 | 43 | | Foreign Exchange Trading | 13 | 12 | 32 | 20 | | Interest Rate Trading | 26 | 28 | 72 | 54 | | Credit Spread Trading | 2 | 1 | 1 | 1 | [(d) Insurance Business Risk](index=47&type=section&id=(d)%20Insurance%20Business%20Risk) Insurance business risk management policies remained unchanged in H1 2025, with the insurance product subsidiary's total assets growing to HKD 234,522 million and total liabilities to HKD 223,095 million as of June 30, 2025 - Insurance business risk management policies and practices remained unchanged in H1 2025[190](index=190&type=chunk) Summary Balance Sheet of Insurance Product Subsidiary (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 234,522 | 207,490 | | Total Liabilities | 223,095 | 196,346 | | Shareholders' Equity | 11,427 | 11,144 | [Interim Condensed Consolidated Financial Statements](index=49&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the bank's interim condensed consolidated financial statements, including the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, and cash flow statement [Interim Condensed Consolidated Income Statement](index=49&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) The Interim Condensed Consolidated Income Statement shows a 7% year-on-year decrease in net interest income, offset by a 23% increase in net fee income and a 280% surge in fair value financial instrument income, but a 224% rise in credit impairment charges led to a 30% decline in profit attributable to shareholders Summary Interim Condensed Consolidated Income Statement (HKD million) | Metric | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 14,339 | 15,483 | -7 | | Net Fee and Commission Income | 3,147 | 2,564 | +23 | | Net Income/(Loss) from Financial Instruments at Fair Value Through Profit or Loss | 10,716 | 2,822 | +280 | | Net Operating Income Before Changes in Expected Credit Losses and Other Credit Impairment Charges | 20,975 | 20,431 | +3 | | Changes in Expected Credit Losses and Other Credit Impairment Charges | (4,861) | (1,500) | +224 | | Operating Profit | 8,549 | 11,396 | -25 | | Profit Before Tax | 8,097 | 11,307 | -28 | | Profit Attributable to the Bank's Shareholders | 6,880 | 9,893 | -30 | | Earnings Per Share (HKD) | 3.34 | 5.04 | -34 | | Cost-Efficiency Ratio | 36.1% | 36.8% | -0.7 pp | [Interim Condensed Consolidated Statement of Comprehensive Income](index=50&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Interim Condensed Consolidated Statement of Comprehensive Income reports a profit for the period of HKD 6,876 million, with other comprehensive income primarily driven by fair value gains on cash flow hedges and debt instruments at fair value through other comprehensive income, totaling HKD 3,344 million Summary Interim Condensed Consolidated Statement of Comprehensive Income (HKD million) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period | 6,876 | 9,888 | | Other Comprehensive Income (after tax) | 3,344 | 3 | | Total Comprehensive Income for the Period | 10,220 | 9,891 | | Total Comprehensive Income Attributable to the Bank's Shareholders | 10,224 | 9,896 | - Other comprehensive income was primarily driven by fair value gains on debt instruments at fair value through other comprehensive income reserves (**HKD 1.188 billion**) and fair value gains on cash flow hedging reserves (**HKD 9.035 billion**)[204](index=204&type=chunk) [Interim Condensed Consolidated Balance Sheet](index=51&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheet) The Interim Condensed Consolidated Balance Sheet shows total assets increased by 1.5% to HKD 1,821,680 million, with customer loans decreasing 2% to HKD 803,356 million and customer deposits growing 2.6% to HKD 1,299,986 million as of June 30, 2025 Summary Interim Condensed Consolidated Balance Sheet (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total Assets | 1,821,680 | 1,795,196 | | Loans and Advances to Customers | 803,356 | 819,136 | | Financial Investments | 526,380 | 541,155 | | Financial Assets Mandatorily at Fair Value Through Profit or Loss | 189,498 | 164,557 | | **Liabilities and Shareholders' Equity** | | | | Total Liabilities | 1,650,971 | 1,625,632 | | Current, Savings and Other Deposits | 1,273,909 | 1,238,224 | | Insurance Contract Liabilities | 214,954 | 188,481 | | Total Shareholders' Equity | 170,670 | 169,522 | | Total Equity and Liabilities | 1,821,680 | 1,795,196 | [Interim Condensed Consolidated Statement of Changes in Equity](index=52&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Interim Condensed Consolidated Statement of Changes in Equity shows total shareholders' equity increased from HKD 169,522 million to HKD 170,670 million, driven by profit for the period and other comprehensive income, despite dividends paid Summary Interim Condensed Consolidated Statement of Changes in Equity (HKD million) | Item | January 1, 2025 | Profit for the Period | Other Comprehensive Income (after tax) | Dividends Paid | As of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | 169,522 | 6,880 | 3,344 | (8,470) | 170,670 | - Retained earnings decreased by **HKD 2.0 billion (2%)**, reflecting dividends exceeding accumulated profit for the period[56](index=56&type=chunk) - Dividends paid include the fourth interim dividend for 2024 of **HKD 6.023 billion** and the first interim dividend for 2025 of **HKD 2.447 billion**[208](index=208&type=chunk) [Interim Condensed Consolidated Cash Flow Statement](index=54&type=section&id=Interim%20Condensed%20Consolidated%20Cash%20Flow%20Statement) The Interim Condensed Consolidated Cash Flow Statement shows a net cash outflow from operating activities of HKD 17,020 million in H1 2025, a shift from inflow in the prior year, with net cash outflows from investing and financing activities, resulting in a net decrease in cash and cash equivalents of HKD 42,204 million Summary Interim Condensed Consolidated Cash Flow Statement (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | (17,020) | 25,390 | | Net Cash from Investing Activities | (8,864) | (15,947) | | Net Cash from Financing Activities | (16,320) | (11,805) | | Net Increase/(Decrease) in Cash and Cash Equivalents | (42,204) | (2,362) | | Cash and Cash Equivalents as of June 30 | 112,984 | 93,352 | - Net cash from operating activities shifted from an inflow of **HKD 25.390 billion** in H1 2024 to an outflow of **HKD 17.020 billion** in H1 2025[211](index=211&type=chunk) - Changes in customer loans resulted in an inflow of **HKD 12.400 billion**, and changes in customer deposits resulted in an inflow of **HKD 35.685 billion**[211](index=211&type=chunk) - As of June 30, 2025, the Group's restricted cash and cash equivalents amounted to **HKD 16.341 billion**[212](index=212&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=56&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The Notes to the Interim Condensed Consolidated Financial Statements provide detailed accounting policies, financial data breakdowns, and key disclosures, covering preparation basis, new accounting standards, income/expense specifics, ECL changes, taxation, EPS, dividends, segmental analysis, and balance sheet item details - The Interim Condensed Consolidated Financial Statements have been reviewed by the bank's Audit Committee and by PricewaterhouseCoopers[213](index=213&type=chunk)[214](index=214&type=chunk) - The accounting policies and key sources of estimation uncertainty adopted in these Interim Condensed Consolidated Financial Statements are consistent with those used in the consolidated financial statements for the year ended December 31, 2024[213](index=213&type=chunk) - No new financial reporting standards or amendments to standards had a significant impact on the Group's Interim Condensed Consolidated Financial Statements[217](index=217&type=chunk) [Basis of Preparation and Accounting Policies](index=56&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) These interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules, with consistent accounting policies and key estimates as the 2024 annual report, while the Group assesses the impact of future accounting developments - These Interim Condensed Consolidated Financial Statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[213](index=213&type=chunk) - The accounting policies and key sources of estimation uncertainty adopted in these Interim Condensed Consolidated Financial Statements are consistent with those used in the consolidated financial statements for the year ended December 31, 2024[213](index=213&type=chunk) - Amendments to HKFRS 9 and HKFRS 7 (effective 2026) and HKFRS 18 'Presentation and Disclosure in Financial Statements' (effective 2027) will impact the presentation of financial statement information, and the Group is currently assessing their potential effects[218](index=218&type=chunk)[219](index=219&type=chunk) [Net Interest Income](index=58&type=section&id=Net%20Interest%20Income) Net interest income for H1 2025 was HKD 14,339 million, a decrease from HKD 15,483 million in H1 2024, with interest income primarily from financial assets measured at amortized cost and fair value through other comprehensive income, and interest expense from financial liabilities measured at amortized cost Net Interest Income Details (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Interest Income | 26,681 | 30,826 | | Interest Expense | (12,342) | (15,343) | | **Net Interest Income** | **14,339** | **15,483** | | Of which: Interest income from impaired financial assets | 1,090 | 554 | | Of which: Interest expense on subordinated liabilities | (718) | (892) | [Net Fee and Commission Income](index=58&type=section&id=Net%20Fee%20and%20Commission%20Income) Net fee and commission income for H1 2025 increased by 23% to HKD 3,147 million from HKD 2,564 million in H1 2024, primarily driven by a 60% growth in securities brokerage and related services and a 24% increase in retail investment funds Net Fee and Commission Income Details (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Securities brokerage and related services | 1,084 | 676 | | Retail investment funds | 781 | 630 | | Credit cards | 1,446 | 1,522 | | Total fee income | 4,559 | 4,016 | | Total fee expense | (1,412) | (1,452) | | **Net Fee and Commission Income** | **3,147** | **2,564** | [Net Income/(Loss) from Financial Instruments at Fair Value Through Profit or Loss](index=59&type=section&id=Net%20Income%2F(Loss)%20from%20Financial%20Instruments%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Net income from financial instruments at fair value through profit or loss for H1 2025 surged by 280% to HKD 10,716 million from HKD 2,822 million in H1 2024, primarily due to significant growth in net trading income and net income from insurance business assets and liabilities Net Income/(Loss) from Financial Instruments at Fair Value Through Profit or Loss Details (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net trading income | 2,296 | 1,554 | | Net income/(expense) from financial instruments designated at fair value through profit or loss | (634) | (999) | | Net income/(expense) from insurance business assets and liabilities (including related derivatives) at fair value through profit or loss | 9,058 | 2,249 | | **Total** | **10,716** | **2,822** | [Changes in Expected Credit Losses and Other Credit Impairment Charges](index=60&type=section&id=Changes%20in%20Expected%20Credit%20Losses%20and%20Other%20Credit%20Impairment%20Charges) Total changes in expected credit losses and other credit impairment charges for H1 2025 significantly increased to HKD 4,861 million from HKD 1,500 million in H1 2024, primarily due to higher provisions for interbank and customer loans, reflecting increased credit risk Changes in Expected Credit Losses and Other Credit Impairment Charges Details (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Loans and advances to banks and customers | 4,738 | 1,533 | | Loan commitments and guarantees | 106 | (28) | | Other financial assets | 17 | (5) | | **Total** | **4,861** | **1,500** | [Operating Expenses](index=60&type=section&id=Operating%20Expenses) Operating expenses for H1 2025 moderately increased to HKD 7,565 million from HKD 7,523 million in H1 2024, with a slight rise in staff costs and benefits, a minor decrease in business and administrative expenses, and an improved cost-efficiency ratio of 36.1% Operating Expenses Details (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Staff costs and benefits | 3,088 | 3,024 | | Business and administrative expenses | 2,904 | 2,975 | | Depreciation | 933 | 962 | | Amortisation of intangible assets | 640 | 562 | | **Total operating expenses** | **7,565** | **7,523** | | Cost-efficiency ratio | 36.1% | 36.8% | [Taxation](index=61&type=section&id=Taxation) Total taxation for H1 2025 decreased to HKD 1,221 million from HKD 1,419 million in H1 2024, despite increased Hong Kong profits tax provision, due to deferred tax movements, with the implementation of global anti-base erosion rules and Hong Kong minimum top-up tax effective from January 1, 2025, expected to generate top-up tax liabilities Components of Taxation (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current tax - Hong Kong profits tax provision | 2,360 | 1,722 | | Current tax - Tax outside Hong Kong | 9 | (60) | | Deferred tax | (1,148) | (243) | | **Total taxation** | **1,221** | **1,419** | - The Hong Kong Legislative Council has passed the implementation of the Global Anti-Base Erosion Rules and Hong Kong Minimum Top-up Tax, effective for fiscal years beginning on or after January 1, 2025, which are expected to generate top-up tax liabilities[229](index=229&type=chunk) [Earnings Per Share](index=61&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for H1 2025 decreased to HKD 3.34 from HKD 5.04 in H1 2024, calculated based on profit attributable to ordinary equity holders after deducting coupon payments on Additional Tier 1 capital notes and the weighted average number of ordinary shares outstanding Earnings Per Share (HKD) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Earnings Per Share - Basic and Diluted | 3.34 | 5.04 | - Earnings per share is calculated based on profit of **HKD 6.285 billion** (H1 2024: **HKD 9.611 billion**) after deducting coupon payments on Additional Tier 1 capital notes, and the weighted average number of ordinary shares outstanding of **1,882,267,536** shares[230](index=230&type=chunk) [Dividends/Distributions](index=61&type=section&id=Dividends%2FDistributions) The Board declared a second interim dividend of HKD 1.30 per ordinary share for 2025, bringing the total H1 2025 dividend per share to HKD 2.60, an 8% increase year-on-year, with coupon payments on Additional Tier 1 capital notes totaling HKD 595 million Distributions to Ordinary Shareholders (HKD/HKD million) | Item | June 30, 2025 (Per Share) | June 30, 2025 (Total) | June 30, 2024 (Per Share) | June 30, 2024 (Total) | | :--- | :--- | :--- | :--- | :--- | | First Interim | 1.30 | 2,447 | 1.20 | 2,282 | | Second Interim | 1.30 | 2,447 | 1.20 | 2,275 | | **Total** | **2.60** | **4,894** | **2.40** | **4,557** | Distributions to Additional Tier 1 Capital Note Holders (HKD million) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | US$900 million callable fixed rate resettable perpetual capital securities | 241 | - | | US$600 million callable fixed rate resettable perpetual capital securities | 354 | - | | US$600 million callable fixed rate resettable perpetual capital securities | - | 282 | | **Total** | **595** | **282** | [Segmental Analysis](index=62&type=section&id=Segmental%20Analysis) As of January 1, 2025, the bank's operating segments include Hong Kong Business, Insurance Products and Asset Management, Capital Markets and Securities Services, and Corporate Centre, with Hong Kong Business dominating in total income and profit before tax, while Mainland China recorded a pre-tax loss - Effective January 1, 2025, the bank's operating and reportable segments include Hong Kong Business, Insurance Products and Asset Management Business, Capital Markets and Securities Services Business, and Corporate Centre[234](index=234&type=chunk)[235](index=235&type=chunk) Segmental Performance Summary H1 2025 (HKD million) | Business Segment | Net Operating Income Before Changes in Expected Credit Losses and Other Credit Impairment Charges | Profit/(Loss) Before Tax | | :--- | :--- | :--- | | Hong Kong Business | 17,723 | 6,435 | | Insurance Products and Asset Management Business | 1,914 | 1,479 | | Capital Markets and Securities Services Business | 901 | 604 | | Corporate Centre | 437 | (421) | | **Total** | **20,975** | **8,097** | Geographical Segmental Performance Summary H1 2025 (HKD million) | Geographical Region | Net Operating Income/(Loss) Before Changes in Expected Credit Losses and Other Credit Impairment Charges | Profit Before Tax | | :--- | :--- | :--- | | Hong Kong | 19,969 | 8,223 | | Mainland China | 931 | (118) | | Others | 80 | (8) | | **Total** | **20,975** | **8,097** | [Details of Balance Sheet Items](index=67&type=section&id=Details%20of%20Balance%20Sheet%20Items) This section provides detailed composition and changes for various balance sheet items, including cash, trading assets, derivatives, customer loans, financial investments, property, intangible assets, customer deposits, subordinated liabilities, and share capital Cash and Balances with Central Banks (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash in hand | 5,383 | 6,241 | | Balances with central banks | 4,337 | 4,192 | | **Total** | **9,720** | **10,433** | Loans and Advances to Customers (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross loans and advances to customers | 819,709 | 832,109 | | Less: Expected credit loss allowance | (16,353) | (12,973) | | **Net** | **803,356** | **819,136** | | Expected credit loss allowance to gross loans and advances to customers ratio | 1.99% | 1.56% | | Total impaired loans to gross loans and advances to customers ratio | 6.69% | 6.12% | Current, Savings and Other Deposits (HKD million) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Demand and current accounts | 88,141 | 74,446 | | Savings deposits | 642,030 | 552,299 | | Time and other deposits | 569,815 | 640,276 | | **Total** | **1,299,986** | **1,267,021** | - A floating rate subordinated loan of **HKD 6.24 billion** due in June 2026 was redeemed on June 13, 2025[261](index=261&type=chunk)[263](index=263&type=chunk) - In 2024, a total of **29,575,200** ordinary shares were repurchased and cancelled, and no listed securities of the bank were purchased, sold, or redeemed by the bank or any of its subsidiaries in H1 2025[268](index=268&type=chunk) [Cash and Balances with Central Banks](index=67&type=section&id=Cash%20and%20Balances%20with%20Central%20Banks) Cash and balances with central banks totaled HKD 9,720 million as of June 30, 2025, a slight decrease from HKD 10,433 million at December 31, 2024 Cash and Balances with Central Banks (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash in hand | 5,383 | 6,241 | | Balances with central banks | 4,337 | 4,192 | | **Total** | **9,720** | **10,433** | [Assets Held for Trading](index=67&type=section&id=Assets%20Held%20for%20Trading) Assets held for trading totaled HKD 38,531 million as of June 30, 2025, a slight decrease from HKD 39,640 million at December 31, 2024, primarily comprising debt securities and reverse repurchase agreements Assets Held for Trading (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Treasury bills | 17,484 | 19,897 | | Other debt securities | 14,528 | 19,716 | | Total debt securities | 32,012 | 39,613 | | Reverse repurchase agreements | 6,499 | - | | **Total** | **38,531** | **39,640** | [Derivative Financial Instruments](index=67&type=section&id=Derivative%20Financial%20Instruments) The Group's derivative transactions are primarily for client risk management, portfolio risk management, and own risk hedging, with total notional contract amounts of HKD 2,400,145 million, fair value assets of HKD 14,578 million, and fair value liabilities of HKD 16,936 million as of June 30, 2025 - The Group's derivative transactions have three main purposes: managing client risks, managing portfolio risks of client businesses, and managing and hedging the Group's own risks[243](index=243&type=chunk) Notional Contract Amounts and Fair Values of Derivative Financial Instruments (HKD million) | Category | Notional Contract Amount (June 30, 2025) | Fair Value - Assets (June 30, 2025) | Fair Value - Liabilities (June 30, 2025) | | :--- | :--- | :--- | :--- | | Foreign exchange | 1,526,381 | 5,503 | 10,813 | | Interest rate | 824,104 | 8,277 | 5,546 | | Equity and others | 49,660 | 798 | 577 | | **Total** | **2,400,145** | **14,578** | **16,936** | [Financial Assets Mandatorily at Fair Value Through Profit or Loss](index=68&type=section&id=Financial%20Assets%20Mandatorily%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial assets mandatorily at fair value through profit or loss totaled HKD 189,498 million as of June 30, 2025, an increase from HKD 164,557 million at December 31, 2024, primarily consisting of other debt securities, equities, and investment funds Financial Assets Mandatorily at Fair Value Through Profit or Loss (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Treasury bills | 157 | 924 | | Other debt securities | 122,312 | 112,669 | | Equities | 19,513 | 12,802 | | Investment funds | 46,785 | 37,387 | | **Total** | **189,498** | **164,557** | [Placements with and Loans to Banks](index=68&type=section&id=Placements%20with%20and%20Loans%20to%20Banks) Placements with and loans to banks totaled HKD 85,228 million as of June 30, 2025, an increase from HKD 76,221 million at December 31, 2024, with the largest portion maturing between one month and one year Placements with and Loans to Banks (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Balances with banks | 4,677 | 4,129 | | Placements with and loans to banks due within 1 month | 31,293 | 40,677 | | Placements with and loans to banks due after 1 month to 1 year | 47,299 | 29,476 | | Placements with and loans to banks due after 1 year | 1,962 | 1,941 | | Less: Expected credit loss allowance | (3) | (2) | | **Total** | **85,228** | **76,221** | | Of which: Placements with and loans to central banks | 6,681 | 8,147 | [Loans and Advances to Customers](index=69&type=section&id=Loans%20and%20Advances%20to%20Customers) Gross loans and advances to customers totaled HKD 819,709 million, with a net amount of HKD 803,356 million after deducting HKD 16,353 million for expected credit loss allowances as of June 30, 2025, showing a decrease from end-2024 and increased ECL and impaired loan ratios Loans and Advances to Customers (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross loans and advances to customers | 819,709 | 832,109 | | Less: Expected credit loss allowance | (16,353) | (12,973) | | **Net** | **803,356** | **819,136** | | Expected credit loss allowance to gross loans and advances to customers ratio | 1.99% | 1.56% | | Total impaired loans to gross loans and advances to customers ratio | 6.69% | 6.12% | [Financial Investments](index=69&type=section&id=Financial%20Investments) Financial investments totaled HKD 526,380 million as of June 30, 2025, a slight decrease from HKD 541,155 million at December 31, 2024, primarily comprising financial investments at fair value through other comprehensive income and debt instruments at amortized cost Financial Investments (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial investments at fair value through other comprehensive income | 443,494 | 411,116 | | Debt instruments at amortised cost | 82,886 | 130,039 | | **Total** | **526,380** | **541,155** | - The Group has no overdue financial investments and does not hold asset-backed securities, mortgage-backed securities, or collateralized debt obligations[248](index=248&type=chunk) [Interests in Associates](index=69&type=section&id=Interests%20in%20Associates) Interests in associates amounted to HKD 2,179 million as of June 30, 2025, a decrease from HKD 2,321 million at December 31, 2024 Interests in Associates (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share of net assets of associates | 2,179 | 2,321 | [Property, Plant and Equipment](index=70&type=section&id=Property%2C%20Plant%20and%20Equipment) Premises, equipment, and investment properties totaled HKD 34,481 million as of June 30, 2025, a slight decrease from end-2024, with a net revaluation loss on properties of HKD 346 million during the period Property, Plant and Equipment (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Premises | 21,392 | 22,442 | | Equipment | 1,564 | 1,602 | | Other right-of-use assets | 793 | 899 | | **Total premises, equipment and right-of-use assets** | **23,749** | **24,943** | | Investment properties | 10,732 | 11,220 | | **Total** | **34,481** | **36,163** | - Net revaluation loss on properties increased by **HKD 207 million** to **HKD 346 million**[37](index=37&type=chunk) [Intangible Assets](index=72&type=section&id=Intangible%20Assets) Intangible assets totaled HKD 4,445 million as of June 30, 2025, a slight decrease from HKD 4,465 million at December 31, 2024, primarily comprising internally developed software, purchased software, and goodwill Intangible Assets (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Internally developed software | 4,045 | 4,062 | | Purchased software | 71 | 74 | | Goodwill | 329 | 329 | | **Total** | **4,445** | **4,465** | [Other Assets](index=73&type=section&id=Other%20Assets) Other assets totaled HKD 57,001 million as of June 30, 2025, an increase from HKD 47,425 million at December 31, 2024, primarily including interbank settlement receivables, gold, prepayments, and reinsurance contract assets Other Assets (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interbank settlement receivables | 4,269 | 3,634 | | Gold | 3,709 | 2,194 | | Prepayments and accrued income | 7,027 | 7,099 | | Bills accepted and endorsed | 9,784 | 8,690 | | Reinsurance contract assets | 13,733 | 12,867 | | Cash collateral | 8,950 | 3,148 | | **Total** | **57,001** | **47,425** | [Current, Savings and Other Deposits](index=73&type=section&id=Current%2C%20Savings%20and%20Other%20Deposits) Current, savings, and other deposits totaled HKD 1,299,986 million as of June 30, 2025, an increase from HKD 1,267,021 million at December 31, 2024, with savings deposits being the largest component and time deposits decreasing Current, Savings and Other Deposits (HKD million) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current, savings and other deposits (as shown in the consolidated balance sheet) | 1,273,909 | 1,238,224 | | Structured deposits classified as financial liabilities designated at fair value | 26,077 | 28,797 | | **Total** | **1,299,986** | **1,267,021** | | Of which: Savings deposits | 642,030 | 552,299 | | Of which: Demand and current accounts | 88,141 | 74,446 | | Of which: Time and other deposits | 569,815 | 640,276 | [Liabilities Held for Trading](index=73&type=section&id=Liabilities%20Held%20for%20Trading) Liabilities held for trading primarily consisted of short positions in securities, totaling HKD 16,425 million as of June 30, 2025, a decrease from HKD 18,093 million at December 31, 2024 Liabilities Held for Trading (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Short positions in securities | 16,425 | 18,093 | [Financial Liabilities Designated at Fair Value Through Profit or Loss](index=74&type=section&id=Financial%20Liabilities%20Designated%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial liabilities designated at fair value through profit or loss totaled HKD 36,387 million as of June 30, 2025, a slight decrease from HKD 38,636 million at December 31, 2024, mainly comprising structured deposits, issued certificates of deposit, and other issued structured debt securities Financial Liabilities Designated at Fair Value Through Profit or Loss (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Certificates of deposit issued | 5,818 | 7,549 | | Structured deposits | 26,077 | 28,797 | | Other structured debt securities issued | 4,255 | 2,045 | | Liabilities to customers under investment contracts | 237 | 245 | | **Total** | **36,387** | **38,636** | - As of June 30, 2025, the Group had no significant cumulative fair value gains/losses on financial liabilities designated at fair value through profit or loss arising from changes in its own credit risk[259](index=259&type=chunk) [Other Liabilities](index=74&type=section&id=Other%20Liabilities) Other liabilities totaled HKD 38,751 million as of June 30, 2025, a significant decrease from HKD 57,399 million at December 31, 2024, primarily due to reductions in settlement accounts and cash collateral, partially offset by increases in interbank settlement payables and bills accepted and endorsed Other Liabilities (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interbank settlement payables | 6,190 | 4,449 | | Accruals | 7,599 | 8,777 | | Bills accepted and endorsed | 9,784 | 8,690 | | Reinsurance contract liabilities | 1,131 | 1,002 | | Settlement accounts | 2,967 | 19,737 | | Cash collateral | 3,464 | 6,619 | | **Total** | **38,751** | **57,399** | [Subordinated Liabilities](index=75&type=section&id=Subordinated%20Liabilities) Subordinated liabilities totaled HKD 21,272 million as of June 30, 2025, a significant decrease from HKD 27,475 million at December 31, 2024, primarily due to the redemption of a HKD 6.24 billion floating rate subordinated loan due in June 2026 Subordinated Liabilities (HKD million) | Face Value | Description | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | :--- | | HKD 5.46 billion | Floating rate subordinated loan due May 2028, callable 2027 | 5,460 | 5,460 | | HKD 4.68 billion | Floating rate subordinated loan due June 2029, callable 2028 | 4,680 | 4,680 | | HKD 6.24 billion | Floating rate subordinated loan due June 2026, callable 2025 | - | 6,240 | | US$400 million | Floating rate subordinated loan due June 2030, callable 2029 | 3,140 | 3,105 | | HKD 5.0 billion | Floating rate subordinated loan due November 2027, callable 2026 | 4,996 | 4,994 | | HKD 3.0 billion | Floating rate subordinated loan due June 2028, callable 2027 | 2,996 | 2,996 | | **Total** | | **21,272** | **27,475** | - A floating rate subordinated loan of **HKD 6.24 billion** due in June 2026 was redeemed on June 13, 2025[263](index=263&type=chunk) [Share Capital](index=76&type=section&id=Share%20Capital) As of June 30, 2025, issued and fully paid ordinary share capital remained unchanged at 1,882,267,536 shares with a value of HKD 9,658 million, following the repurchase and cancellation of 29,575,200 ordinary shares in 2024 Share Capital (HKD million) | Item | Number of Shares (June 30, 2025) | HKD million (June 30, 2025) | Number of Shares (December 31, 2024) | HKD million (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | As of January 1 | 1,882,267,536 | 9,658 | 1,911,842,736 | 9,658 | | Less: Shares repurchased and cancelled | - | - | (29,575,200) | - | | **As of June 30/December 31** | **1,882,267,536** | **9,658** | **1,882,267,536** | **9,658** | - In 2024, a total of **29,575,200** ordinary shares were repurchased and cancelled, and no listed securities of the bank were purchased, sold, or redeemed by the bank or any of its subsidiaries in H1 2025[268](index=268&type=chunk) [Other Equity Instruments](index=76&type=section&id=Other%20Equity%20Instruments) Other equity instruments remained unchanged at HKD 11,587 million as of June 30, 2025, primarily comprising US$900 million and US$600 million callable fixed rate resettable perpetual capital securities held by the immediate holding company, which are loss-absorbing and subject to write-down upon specific trigger events Other Equity Instruments (HKD million) | Face Value | Description | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | :--- | | US$900 million | Callable fixed rate resettable perpetual capital securities due September 2029 | 6,947 | 6,947 | | US$600 million | Callable fixed rate resettable perpetual capital securities due June 2029 | 4,640 | 4,640 | | **Total** | | **11,587** | **11,587** | - These Additional Tier 1 capital notes are held by the immediate holding company, are loss-absorbing, perpetual, and subordinated, with the bank having the discretion to cancel coupon payments[270](index=270&type=chunk) [Contingent Liabilities, Contractual Commitments and Guarantees](index=77&type=section&id=Contingent%20Liabilities%2C%20Contractual%20Commitments%20and%20Guarantees) Contingent liabilities and financial guarantee contracts totaled HKD 20,114 million, and commitments totaled HKD 494,523 million as of June 30, 2025, with no significant litigation adversely impacting the financial position Off-Balance Sheet Contingent Liabilities and Commitments (HKD million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Contingent Liabilities and Financial Guarantee Contracts** | | | | Financial guarantees | 604 | 1,898 | | Performance and other guarantees | 19,510 | 20,950 | | **Subtotal** | **20,114** | **22,848** | | **Commitments** | | | | Documentary credits and short-term trade-related transactions | 1,555 | 2,353 | | Forward asset purchases and forward deposits placed | 17,618 | 12,991 | | Undrawn formal standby facilities, credit lines an

Summary of Key Points Core Viewpoint - On August 25, nine Hong Kong-listed companies conducted share buybacks, totaling 1.8064 million shares and an aggregate amount of HKD 577 million [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 895,000 shares for HKD 551 million, with a highest price of HKD 620.00 and a lowest price of HKD 608.50, bringing its total buyback amount for the year to HKD 43.347 billion [1][2]. - Hang Seng Bank repurchased 200,000 shares for HKD 22.697 million, with a highest price of HKD 113.90 and a lowest price of HKD 112.70, totaling HKD 38.606 million for the year [1][2]. - Beisen Holdings repurchased 200,000 shares for HKD 1.5988 million, with a highest price of HKD 8.09 and a lowest price of HKD 7.86, totaling HKD 34.2558 million for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on August 25 was from Tencent Holdings at HKD 551 million, followed by Hang Seng Bank at HKD 22.697 million [1][2]. - In terms of buyback volume, Tencent Holdings led with 895,000 shares, followed by Qinqin Food at 320,000 shares and Beisen Holdings at 200,000 shares [1][2]. Group 3: Notable Events - Qinqin Food's buyback on this date marked its first buyback of the year, while Tencent Holdings has conducted multiple buybacks totaling HKD 43.347 billion for the year [2].

恒生银行是一家在香港具有重要影响力的金融机构。恒生银行成立于1933年，总部位于香港。它提供全 面的金融服务，包括零售银行及财富管理、商业银行、环球银行及资本市场服务等。恒生银行在香港拥 有广泛的分行网络，在中国大陆以及其他国际市场也有业务布局。在香港金融市场中，恒生银行一直以 来凭借其稳健的经营策略、优质的金融服务和良好的风险管理能力而占据重要地位。其业务涵盖了个人 和企业金融服务的多个领域，在储蓄、贷款、投资、贸易融资等业务方面都有成熟的产品和服务体系， 是香港地区金融体系的重要组成部分。 8月25日，恒生银行回购20.00万股股票，每股回购均价113.48港元，共耗资约2269.68万港元，本年累计 回购340.00万股，占总股本0.18%。 截至当日港股收盘，恒生银行上涨0.35%，报113.2港元/股。 恒生银行近期回购情况 回购日期回购均价回购股数回购金额本年累计回购股数2025-08-25113.48420.00万2269.68万340.00万 2025-08-22112.62820.00万2252.56万320.00万2025-08-21112.46820.00万2249.35万300.00万 ...

智通财经APP讯，恒生银行(00011)发布公告，于2025年8月25日斥资2269.68万港元回购股份20万股，每 股回购价格为112.7-113.9港元。 ...

恒生银行(00011)发布公告，于2025年8月25日斥资2269.68万港元回购股份20万股，每股回购价格为 112.7-113.9港元。 ...

格隆汇8月25日丨恒生银行(00011.HK)公告，8月25日耗资2269.7万港元回购20万股。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 恒生銀行有限公司 呈交日期： 2025年8月25日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | | 股份類別 不適用 | | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | 00011 | | 說明 股份 | | | | | | | | 多櫃檯證券代號 | 80011 | RMB | 說明 股份 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | ...